CAG report bound to have flaws, opines Sanjeev Aga

Sanjeev Aga, former CEO of Idea believes the Comptroller and Auditor General (CAG) is not a sectoral expert so findings bound to have flaws.  

Certain aspects of the information memorandum issued by the Department of telecommunications on 2G spectrum auction have perplexed the industry. There is a lack of clarity on who can participate in the upcoming 2G auction scheduled to begin on the November 12, 2012
If an executive does not do the right thing then the price will by paid by us, Aga told CNBC-TV18. "It will be a setback for foreign bidders if allowed to bid only with a local partner," he warned. Below is the edited transcript of his interview to CNBC-TV18. Q: On Coalgate, the view of political parties seems to be clear is to score brownie points. Do you think that the expectation that with Chidambaram and company coming in to the finance ministry, we will see reforms being pushed forward?
A: I never had those expectations. In telecom sector, I had a pretty accurate idea of what went on when things were on some years ago and some idea of what goes on in coal sector. Similarly, there are people who know what happened in Karnataka with the mines, and if people like us know so much, obviously then the people in powers knows everything in graphic detail.
When a CAG comes, they are given the papers but no help and guidance are provided. They are not sector experts. Certainly, the truth has masked in cases like this and then the CAG navigates like through a labyrinth. So, they will come up with conclusions, which are bound to have flaws and then people will say that the report is flawed. So, it is a cash 22 situation. Now just ask yourself a question, you heard so much about telecom, what is the executive action done in the last five years to either preempt or correct or take disciplinary action as far as telecom is concerned, it is exactly zero. I don't know what action has been taken in coal. Q: Action has actually been taken by the judiciary in the matter? Do you anticipate down that road as far as the coalgate scam is concerned as well?
A: I have a bigger point. If the executive is abdicating its role or sometimes by abdication becoming complacent then what is the use to listen to the Parliament? I don't want, I have no interest in listening to synthetic or cosmetic debate or sophistry, you want to hear the truth. If it is just going to be BJP versus Congress each almost equally guilty what good is it? Q: You believe as well that some of the CAG findings or conclusions may be flawed, may be disputable as the Prime Minister has himself articulated. The government responded that the CAG never even came back to them before putting out what is now a draft report. The atmosphere is one where you cannot dispute the CAG findings or the CAG conclusion. The atmosphere because of the lack of credibility of the government has made it impossible to even have a discussion on the economic logic of the conclusion that the CAG may have arrived at?
A: On telecom, I think CAG made mistakes, but the way to correct the mistake is to say what actually happened. If you are not going to speak the truth then someone else will have to try and decipher the truth and it will never be the precise truth.
Similarly, matters will go to the Supreme Court, but if people are not going to be truthful the Supreme Court will do its best, but it will do like what has happened in the 2G judgment where it will make a largely good judgment, but there will be some innocents who will be punished and some guilty who will go scot free.
If you are going to have the executive not playing its role, I am not going party wise. I am including coalgate, telecom gate, Bellary gate and many other gates. If the executive don’t take correct action, then the price will be paid by us. Q: What is your view on the confusion that has arisen by some of the clauses in the information memorandum on 2G application process?
A: No, I haven't read the memorandum and I have lost interest in the telecom sector. It was such a pity and wonderful sector. But, now it a curse that you have a telecom stamp on your forehead. Q: Do you believe that foreign bidders should be allowed to bid as if for 100% foreign entity or they need to have a local partner because the memorandum seems to suggest that a foreign bidder will not be allowed to bid as a foreign-owned entity they will need to have a local partner beforehand, which was not the case with the 3G auction?
A: The crux of the Supreme Court's order is very simple. They said last time you gave out licenses the wrong way. So, do it again and in a right way and their prescription of the right way is that open it up to auction to everyone who was deprived last time.
Obviously, what has been canceled must be put on auction. Now, when I look at the bid document I find half of the spectrum is disappeared. I don't think the government has any such authority. It is a court directed auction.
The government can't divert spectrum as per their wish. Now as far as foreign bidders are concerned, I think it is logical that the time is short and if you want to have a wide auction where is the time for them to form joint venture partnership in one month or 15 days or 20 days. So in a situation like this, I think it is understandable to say that you come in now, but within a defined period of time dilute either with the public or find an Indian partner. Q: This is going to be a big set back as far as foreign investors like Telenor are concerned?
A: This is the same problem. Last time they got Qualcomm and then it started playing games. In so many words you are saying you are going to shut them out which is not what the Supreme Court was driving at.