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Canteen Irregularities
Army, Navy chiefs appear before PAC
General VK Singh, Air Chief Marshal PV Naik depose separately; meeting inconclusive
Tribune News Service

New Delhi, January 12
The much-hyped meeting between the chiefs of the armed forces and the Murli Manohar Joshi-headed Parliamentary Public Accounts Committee (PAC) remained inconclusive today.

The three forces have been asked to come up with clarification on matters raised by MPs, following which the PAC will take some more time to conclude hearing on alleged anomalies in the supplies to canteen stores and also the supply of dry rations to the troops.

General VK Singh and Air Chief Marshal PV Naik deposed separately before the PAC. Naval Chief Admiral Nirmal Verma is on a pre-scheduled four-day visit to Indonesia. He was represented by his deputy, Vice Admiral DK Dewan.

The Public Accounts Committee (PAC) was inconclusive as the Army and the Air Force presented their views that were “divergent” from the CAG report which was being examined by the PAC. The Army was, however, looking to change the operating procedures involving buying of rations and it would implement changes over the next few months, sources said.

“There was no contradiction between the PAC and the chiefs,” Joshi, who is a senior leader of the BJP, told reporters after the meeting. Emerging from the meeting, IAF Chief Air Chief Marshall PV Naik said, “….We have put forward our viewpoint and they put forward their viewpoint… we will meet again.”

Joshi was statesman-like as he clarified that calling of the chiefs by the PAC was neither unprecedented, nor should it be termed as “summons” by the media. Years ago, Dr APJ Abdul Kalam, while he was heading one of the scientific research organisations, had appeared before the PAC to explain a matter. It was important to call the chiefs as they were the one who formulate the policy.

The chiefs had come with their free-wheeling and frank responses to the CAG report, Joshi said. “Discussions will improve the systems….., we will decide on views when they (the chiefs) come up with suggestions after their own internal discussions,” he added. In response to a question, Joshi said, “The chiefs made presentations… which were routine in nature… I cannot say if it was acceptable or unacceptable.”

Sources later said the case of unit-run canteens came up for discussion and the argument of the forces that this was “private activity” to help the troops at the unit-level was not convincing. The CAG, in its report in August last year, had criticised the services over the way its unit-run canteens (URCs) functioned and the lack of transparency in their accounting methods. The PAC later sought answers from the Defence Ministry, which in turn wrote to the service chiefs on the alleged irregularities. The forces opine the URC is “beyond the purview” of the CAG.

Joshi said all funds that were from the consolidated fund of India had to be audited. Separately, he refused to reveal if the matter of cartelisation in the matters of supply to the CSD was discussed.

The CAG report said: The existing procedure for provisioning of dry rations for troops failed to assess the requirement realistically. The failure was mainly due to systemic deficiencies.

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