Thursday, February 25, 2010




15/1089-90, VASUNDHARA, VASUNDHARA (P.O.), Dt. GHAZIABAD (U.P), PIN-201012

Ph: 0120-2881727/4101593/ 0 – 98681 45667

E-mail: auditflag1923@gmail.com

Website: www.auditflag.blogspot.com
Reference: AIA/Circular-07/2010 Dated: 24th February 2010

Dear Comrades,
The 45th Conference of the Association unanimously decided to go for one day Mass Casual Leave on 8th April 2010, along with All India Audit & Accounts Officers Association and other Constituents of Joint Action Committee of Accounts and Audit employees and officers Organisations. The Conference fully endorsed the decision of the Apex JAC which met on the eve of the 45th Conference at Jaipur.
          The One Day Mass Casual Leave would be organised in pursuance of the 19-point Charter of Demands adopted by the Conference.
          Accordingly the following programme was adopted by the Conference based on the decision of Apex JAC
1. February 24-26, 2010: To be used for campaign

2. March 15-31, 2010: Mobilisation of Casual Leave
3. April 07, 2010: Submission of Casual Leave

          The Apex JAC had also decided that the Notice for the programme of MASS CASUAL LEAVE would be given by the Constituent Organisations of JAC – ie by the HQrs of each Association. Units need not intimate the administration about the Mass CL programme, except submission of Casual Leaves collected from membership on 7th April 2010.

The Charter of Demands and the campaign material is given along with this circular.

All the units are requested to start preparation for the MASS CASUAL LEAVE in the right earnest. All out effort may be made to galvanise the organisational machinery and mobilise the entirety of work force of IA&AD for the total success of the MASS CASUAL LEAVE programme on 8th April 2010.


          One would remember that it took four months for the administration to grant a courtesy meeting with DAI. It is four months since the agenda items were submitted on 25th November 2010, but no date for the meeting has been yet decided.

          The last bilateral meeting with DAI was held on 1st May 2007. And that is the first and last since 2004, when we were recognised as Federation under CCS (RSA) Rules, 1993. Prior to and after that, every DAI has avoided meeting the Staff Side. Many important issues are kept pending while attempts are being made to curtail the activities of the Associations at field level are being attempted at the connivance of the CAG administration.
          The verification of membership ordered in June 2008 is yet not finalised. The intention is very clear. The administration wants to continue with continue with paper tigers and pamper them.
          Our reply to these dilatory and destructive attitudes of the administration has to be with massive campaign and total participation of the entire work force in the agitational programmes.

          The give final shape to the campaign and mobilisation for the Mass Casual Leave programme on 8th April 2010, the National Executive Committee would meet at New Delhi 0n 12-13 March 2010.
          The tour programme of the leaders is also being finalised; it would be circulated before the meeting of National Executive.

With greetings,

Yours fraternally,

(M. S. Raja)

Secretary General


1. a) Vacate victimisation of Association activists.

b) Allow democratic functioning of Association without interference from administration

c) Hold independent enquiry into the administrative excesses in AG’s office Kerala as directed by ILO

The developments in Kerala have been reported through circulars repeatedly. Hundreds of our leaders and activists are facing multiple chargesheets and pay cuts. Two of our comrades have been dismissed from service on fictitious charges. The Accountant General who caused all these havoc has been promoted and posted to another office where till this day he has not even had a courtesy meeting with Association. (That is what many of the IA&AS officers are - discourteous!).

In Rajkot, violating all rules, President of our Association is kept under suspension for more than a year.

We have an administration that will not interfere when the Accountants General run like wild bull, but will come down heavily on the employees when they raise their voice against outsourcing and injustice.

The Indian Audit & Accounts Department might have lost its teeth it had on functional front immediately after the attainment of independence; but IA&AS bureaucracy is still in the immediate post-independent mind set when it come to the question of dealing with employees Association. Dozens of our comrades have been sent out of service for raising the banner of unity and struggle for a better tomorrow. Even today, dozens of comrades in different offices and states are suffering from the high-handedness of the bureaucracy and many are facing charge sheets. In many units, even today, bare minimum facilities are not provided to the Associations. It is expected and demanded that the administration behaves in a manner befitting a democratic set up.
The International Labour Organisation has – on a complaint filed by CITU – commented that the penalties imposed upon Kerala comrades by the As G is violation of fundamental rights enshrined in the constitution and hence to be withdrawn. ILO was convinced that these programmes were held in protest against the attempt to outsource a substantial portion of the jobs hitherto being done in the AG’s Office, Kerala to a private agency.

The ILO further advised the Government of India to hold an independent inquiry into the happenings in the offices AsG, Kerala. It has also advised the government to amend Rule 6 (b) and Rule 8 of CCS (RSA) Rules, 1993 as these provisions have been made on the basis of stipulations which are not in conformity with freedom of associations principles.

A brief on ILO finding is given elsewhere.

2. Strengthen Audit & Accounts to Safeguard People’s Rights

a) Stop down sizing; Stop outsourcing & privatisation of Audit & Accounts; Scrap curtailment/shedding of Audit functions in the name of Audit Plan.

b) Ensure continuance of the existing Accounting and Auditing methodologies and appropriate party days with scientific work norms.

c) Ensure effective Panchayati Raj Audit & Accounts by sanctioning more posts.

‘The Indian Audit & Accounts Department headed by the Comptroller & Auditor General of India may be described as one of the four pillars of India’s democratic constitution, the other three being the Executive, the Legislature and the judiciary. It is one of the four agencies of financial control along with the Legislature, the Administrative Ministries and the Finance Ministry. Money has often been described as the fuel of the administrative machine or the blood stream of administration and correct accounting of monetary transactions and their audit by an independent authority are essential adjuncts to the efficient financial administration and good government of any country, more so where a democratic form of government prevails.’

It is this very basic foundation that is turned upside down. It was envisaged in the Constitution to have every paisa accounted for but the powers that be are adopting only such policies and programmes which do exactly the reverse.

In the name of ban on recruitment no recruitment of Auditors/Accountants, Clerks and Gr. Ds in our Department have taken place for the nearly a decade. Vacancies are piling up. There is no manpower to conduct audit. To cope up with the situation CAG has introduced “Audit Plan”. This is not a plan to conduct audit in a more scientific manner. It says, in a year conduct only that much audit as may be possible with the available manpower. The remaining Audit need not, nay, should not be shown as arrears. It should be just written off. On the one hand, the constitutional responsibility is just shirked by not conducting audit periodically and on the other hand the quantum of audit gets shrinked, affecting the staff strength and staff prospects. The staff shortage in Audit, leading to curtailment of functions, is used as a pretext for outsourcing/contractorisation and privatisation of auditorial functions.

The ulterior motive behind it could be understood when one learn that this Audit Plan was conceived as back as in 1994. The audit bureaucracy had planned the formation of Institute of Public Auditors (registered as a trust in 1998) (name changed into Institute of Public Auditors & Accountants, later on) and eventual privatisation of auditorial functions is clear from this. This treachery towards the Department by its own officers is to be exposed.

The concept of audit is given a go by. Audit of regulations, financial propriety and even efficiency is dumped for performance-based audit, negating the very concept of audit. Every paisa being accounted and expenditure there-of being audited is replaced by ‘show performance and get an audit certificate’ system, leaving the unscrupulous activities and decisions as well as corruption undetected. This will negate the right of the citizen of this country to have a clean and transparent administration. It will also make even the existing staff in audit offices surplus. Retaining the existing audit methodology and norms along with formulating scientific work norms is the only solution.

The attempt of the administration to appoint a foreign consultant to conduct a work study and thus to evolve a new work norms is shocking. Imagine, this is done by the Constitutional Authority who is the consultant for all others in the country!

A foreign agency cannot understand the spirit of the Constitution cannot catch up and appreciate the aspirations of the crores of Indian populace and bound to fail in the Indian context. What could be expected of them is imposition of western model on India. This is not acceptable.

The computerisation is playing havoc with Accounts and entitlement functions. In almost all field offices Voucher level Computerisation is on the advanced stage. With state governments completing their computerisation of their offices and treasuries and sub-treasuries, the whole accounting system is getting switched over to on line.

Maintaining the accounts and conducting the audit of Panchayati Raj Institutions (PRI) has come to IA&AD as a result of the 73rd & 74th amendments to the Constitution. Here again we see the same policies, some times more retrograde one like sharing of audit functions with the state Governments and not even demanding accounting functions, are being pursued.

With nearly 80% of the budget allocation going to the PRI, proper accounting and auditing is of the same extent is a must; it is in the interest of democracy, people’s rights to have a clean and transparent administration. Also, as far as the employees and officers of IA&AD are concerned it is the question of being able to discharge a national duty in addition to protecting, if not bettering, the prospects.

Instead of discharging the basic Accounting and Auditing duties, the tendency at the highest level in the Department today is to bask in the glory of ‘performance audit’ reports – patting self on helping the administration.

By over concentrating on this performance audit reports, we are missing wood for trees.

3. a) Amend Company Law and DPC Act for Audit of Public Sector Undertakings & Corporations even after reduction of Government share to below 50%.

b) Amend Company Law to ensure the Audit by IA&AD of all Public Limited Companies listed with Securities and Exchange Board of India (SEBI)

c) Enact necessary law to bring audit of all public Financial Institutions by IA&AD.

This demand, or demands, is keeping in mind the role of IA&AD as envisaged in the Constitution. In simple words, where ever public money (this includes ‘the public’- the people) is involved it should be audited by a Constitutional authority like CAG. And, CAG’s audit should not be construed as audit by any Dick and Harry authorised by CAG. Then it will be like the audit by the Chartered Accountants who do the audit and certify the accounts to please the master who pays them (like the one did by Price water house – the auditors for Satyam). It should be clearly mentioned in the DPC Act that audit by CAG means audit by IA&AD personnel.

The scams that involve thousands of crores of rupees are the order of the day. In all such firms, Chartered Accountants conduct the audit. Again in all these, the victims are innocent people who invested money going by the audit certificate issued by the Chartered Accountants. The common shareholder or investor is unorganised and they are taken for a ride. There comes the need of audit by CAG through IA&AD to ensure that money of the common man is properly accounted for and they are well advised on the health of every firm that goes public with equity offers.

Also, the money invested by the Government directly or by the Financial Institutions like LIC, UTI, Nationalised Banks etc. – even if it is below 50% - is the money of the people of this country. Just because the share is below 50%, it will not be accountable to the parliament and there-by to the people of the country cannot and should not be acceptable. For the democracy to survive in its true sense, it is a must that all such companies come under the scrutiny of IA&AD.

Similarly, in the recent past, some of the investments made by the Financial Institutions were of dubious nature. Sometimes, under pressure or in nexus with the unscrupulous market players rupees worth thousands of crores are invested to the detriment of the exchequer or investor. It is a must that all such Financial Institutions are also brought under the audit of IA&AD.

4. Fill up all vacant posts including Gr D, no matching savings at the cost of Gr B, C & D cadres

The sanctioned strength of the Department in the 1990s was 72000 with a vacancy of nearly 7000. Today, the PIP is 44000. Even all those who matter in the CAG administration accept that the vacancy position is of the tune of 17000. All these vacancies are in the lower cadres of Auditor/Accountant, LDC and Gr D.

This shortage in man power has a telling effect on discharge of functions as stated under item No 2. While the man power shortage affects the functions, there is a substantial increase in the number of Gr A officers and their promotional avenues. The work study that has been entrusted to a transnational corporation will definitely be used to increase the Gr A strength further up in the ladder.

5. a) Withdraw proposal on restructuring of MAB offices and re-allocation of audit resources amongst State Commercial Audit and retain status quo.

b) Stop unilateral implementation of transfer policy in Commercial Audit

(Very recently, after 45th Conference, the CAG office has issued order putting hold on the proposed restructuring of MABs)
6. Implement Arbitration Award on SA pay Scale

The Central Board of Arbitration gave the following award on 24th August 2004 on CA Ref No 3/2001.
“The Government is directed to grant upgraded Pay Scales same as to the Assistants of Central Secretariat Services of 1640-2900 (5500-9000 with effect from 01.01.1996) to all Senior Auditors/Sr Accountants/Accounts Assistants of Railways with effect from 01.01.1986 notionally and actual payment from 12.11.2001, the date of reference of arbitration to the board.”

The government had been taking a stand in the Standing Committee of JCM that as the outgo on account of arrears is more than Rs 600 crores, it is not in a position to implement the award. The staff side initially proposed a mutually acceptable date for implementation. There after the Staff Side has given in writing that they are ready to accept the actual implementation of the award from 1.1.2006, the date of implementation of SCPC recommendations. Still the government is not ready to implement the award. There has been discussion on the subject after 2007.

7. Upgrade all LDC to PB 1 GP 2400 (4000-6000 pre-revised) as Audit/Accounts Assistant; merge LDC & DEO and grant the following pay scales to other cadres

Auditor/Accountant : PB2, GP 4200

SA/Steno Gr I : PB2, GP 4600

AAO/Private Secretary : PB2 GP 4800,

PB3, GP 5400 on completion of 4 years

AO : PB3, GP 6600

SAO : PB3, GP 7600

          The demand is self explanatory. The demand for higher pay for Sr Auditor/Sr Accountant gets strengthened with the hiking up of pay of Assistants of CSS with effect from 1st Jan 2006. It may be noted that the Assistants of CSS were at the pay scale of 5500-9000 on 1st Jan 2006. It was with effect from 15th Sept 2006 their pay was revised to 6500-10500 with a rider that 6 CPC would take a final call on the issue.

          It has been stated by PD, staff in the last formal meeting that hence forth all recruitments would be to the cadre of DEO with Grade Pay 2400. Hence the demand that all LDCs be upgraded as DEO with a new nomenclature Audit/Accounts Assistant so as to retain the seniority.

8. Permit all Employees in the GP of 1800 to appear for all Departmental Exams including SOGE.

With the upgradation of all Gr Ds as Gr C with Gr Pay of 1800, available to Gr C all such employees be permitted to write the SOGE examination on completion of 3 years. Similarly promotional exam to Auditor/Accountant may also be made open to all such personnel, including canteen employees.

9. Extend benefits of MACP to Assistant Audit/Accounts Officers by treating promotion to AAO as direct recruitment; withdraw the order treating promotion from Section Officer to Assistant Audit Officer between 01.01.2006 to 01.09.2008 as null and void.

The MSO (Admn), Vol. I states that “Section Officer’s (re-designated as Assistant Accounts/Audit Officers) service is an appointment and not regular line of promotion …”

The fact that the service rendered in the cadre of AAO only is counted for future promotions confirms the above position.

It is therefore in fitness of things that the MACP scheme is made applicable to the cadre of AAO (and above) treating the date/month of placement as AAO (previously SO) as the entry date/month into the service.

We have placed this demand vide letter dated August 27, 2009.

The declaration of promotions as AAO between 1st Jan 2006 and 1st Sept 2008 as null and void could be termed as nothing but bizarre.

The gazette notification by the MOF dated 29th August 2008 took effect from 1st September 2008.

The promotion to AAO from SO is based on a recruitment rule and as no Recruitment Rule can be amended with retrospective effect. Till amended through proper notification, the merger cannot be said to have taken place.

(The formal circular stating that the cadres of Section Officer and AAO are re-designated as AAO was issued on 27th May 2009 by HQr office).

This demand has been raised by us vide our letter dated September 6, 2009.

10. Designate Supervisor as AAO & Earmark 20% of AAO post for seniority cum fitness promotion

The demand is self explanatory.

11. Remove differential treatment on pay fixation on promotion vis-à-vis direct recruitees in all cadres

The demand is self explanatory.

12. Stop down sizing of P&T Audit Offices

It is reported that reduction in the actual strength of P&T Audit is being considered. This is based on the report of a task force formed in 2007.

This Association and All India Audit & Accounts Officers Association had jointly finalised a study report on P&T Audit and had submitted to CAG vide letter dated 11th MAY 2007. According to the said report there is a shortage of 303 Auditor/Sr Ar, 192 AAO and 63 AO/SAO (in 2007).
13. Re-imburse hotel charges to Railway Audit personnel wherever Railway accommodation is not allotted while on tour.

Provision of Rest House facilities for officers and staff of Railway Audit on inspections/reviews duty:

The Officers and staff of the Railway Audit wing of the I.A&A.D on tour duty for inspections/reviews are governed by the Railway T.A Rules envisaging traveling on Duty passes and stay in Railway Rest houses at the work spot. The period of stay for the tour party at the place of duty ranges between 3 and 8 days for carrying out inspections/ review as per the programme of Audit.

In practice, however, difficulties are being faced by the inspection personnel on tour due to non-availability of Railway rest houses at the work spot/ non-allotment of accommodation for the required periods in the rest houses wherever available due to priority in allotment in favour of the Railway personnel on tour. The period of allotment does not exceed 3 days at a time as per the local arrangements. Besides, the touring personnel have to vacate the accommodation even after allotment for these restricted periods in the event of requirement for Railway personnel in exigencies arising out of Railway operations.

As this affects the unhindered conduct/ completion of inspections/ reviews as programmed to the required satisfaction and impacts on the output it was requested during earlier meetings that the members of the inspection/ review parties may be permitted to stay in hotels of appropriate entitlement wherever Rest house facilities are not available/ accommodation not allotted during the period of inspection/ review and expenditure thereof be reimbursed to the personnel on tour duty.
14. Regularise all casual, temporary, contract, daily wage workers

The demand is self explanatory

15. Permit self certification for TA/DA claims

CAG has issued orders in this regard since then.

16. Restore unilateral transfer policy.

The demand is self explanatory

17. Restore metal Pass facility to AAOs in Railway Audit
The Gazetted Officers of Railways are given Metal Pass which will entitle them for better accommodation and other facilities while on tour. On the plea that AAOs of Railway Accounts are not Gazetted and also that even those with higher grade pay in technical cadre are classified as Gr C, the Railway Board has denied the facilities of a Gazetted officer to AAOs in Railways.

18 Grant increment and Grade Pay of 4800 from the day of Passing of SOGE
This would ensure that the personnel who have been declared passed in SOGE would continue to draw the pay and entitlements of AAO, irrespective of whether he is given the status.

19 Maintain Status Quo Ante on recruitment Rules on promotion to AOs cadre

CAG in 2004 suo moto revised the Recruitment Rule for AOs. The eligibility criteria for promotion from AAO to AO have been changed to “Selection” from the merit (331/3rd) and seniority cum fitness (661/3rd).

This has the potential of being misused by the (P) AsG to deny promotion to upright officers.



ILO has come to the conclusion on the basis of its investigation on the situation in Kerala AG’s Office that, numerous disciplinary actions have been taken against the members of the AIAAK (All India Audit & Accounts Association, Kerala) for having participated in demonstrations, sit-ins and marches in December 2006, January, April and May 2007 and March and April 2008. ILO was convinced that these programmes were held in protest against the attempt to outsource a substantial portion of the jobs hitherto being done in the AG’s Office, Kerala to a private agency.

Unparalleled infringement of freedom of Association Rights

The ILO Committee had gone deep into the allegations raised by the Government against three leaders of AIAAK viz. Balachandran NN, President, Accounts Association, Category II, Vijayakumar KN, General Secretary, Accounts Association, Category III and State Convenor, AIAAK and Santhoshkumar SV, Committee Member, Accounts Association, Category III.

The Committee has found that the allegation raised against Balachandran NN was that ignoring the warning given by the Deputy Accountant General, he had participated in the protest programme, shouted defamatory slogans against the Accountant General and the Deputy Accountant General in the corridor, in front of their chamber blocking free passage and was taken into custody by police on January 12, 2007 for obstructing the passage to the Accountant General’s chamber. Taking the position that Balachandran could not prove in his reply to the charge sheet that his actions were not disruptive of the office discipline and decorum, the office of the Accountant General found his denial not credible and considered that holding a formal inquiry was not required to prove his misconduct as the same has been proven beyond doubt by credible witnesses and video recordings. It was also noted by the ILO that the Accountant General in his capacity as the disciplinary authority ordered to impose the penalty of withholding five increments for 5 year duration in the cadre of Assistant Accounts Officer.

The ILO has also found that Vijayakumar KN was issued with the penalty of dies-non and reduction in salary by one stage for three years for having rushed behind the Accountant General, gesticulated and shouted at the latter and for having mobilized the membership to demonstrate against penalizing him.

The ILO committee was further convinced that Santhoshkumar SV, a senior Committee Member of Accounts Association, Category III was given the punishment of reversion from Senior Accountant cadre to Accountant for three years with the condition that even on expiry of the penalty his seniority and increment would not be restored. This ‘lenient’ punishment (‘lenient’ according to the Accountant General) was given on the charge that Santhoshkumar had spoken to the Accountant General roughly, in a loud voice, and refused to obey the order to leave the hall, during a training class.

After discussing these penal actions, the ILO recalls that the workers should enjoy the right to peaceful demonstrations to defend their occupational interests. (Vide para 133 of the Digest of Decisions and Principles of the Freedom of Association Committee, fifth edition, 2006) The ILO further recalls that the full exercise of trade union rights calls for a free flow of information, opinions and ideas and that to this end workers, employees and their organizations should enjoy freedom of opinion and expression at their meetings, in their publications and in the course of other trade union activities. (Para 154 ibid)

The ILO explains that ‘freedom of association rights’ includes, right to peaceful demonstration for defending their occupational rights and free flow of information, opinions and ideas in all trade union activities by employees and workers, of course, pointing out that trade unions must conform to general provisions applicable to all public meetings and respect the reasonable limits of propriety which may be fixed by the authorities to avoid disturbances in public places and refrain from the use of insulting language.

ILO condemns the Government of India

In spite of the observation of the Indian Government that the incidents, which have been explained away as peaceful demonstrations by the employees, were actually obstructive of office discipline and decorum, the ILO is of the firm view that the penalties given by the Government on the three trade union leaders of the AIAAK are of very serious proportions and apprehends that they could undoubtedly weaken the trade union activities in the office. The committee demands that the Government should arrange for consideration of the appeals and review petitions, failing which the Government should hold full and independent inquiry into the whole incident.

ILO demands amendment of Rules denying Freedom of Association Rights

The ILO committee has also discussed at length the view taken by the Government on freedom of association rights that as Government employees, the AIAAK member’s conduct and service conditions are governed by the CCS (Conduct) Rules, 1964. Further, the ILO has also taken note of the view of the Government that Section 6(a) of CCS (Recognition of Service Association) Rules, 1993 requires that service associations have to abide by the Conduct Rules, failing which the Association will no longer be recognized by the Government. The Government contended that the trade union rights do not apply to service associations and that the Trade Union Act does not apply to civil servants. Government further takes a stand that bodies such as the CITU have no standing in connection with the internal functioning of the office of the Accountant General. According to the Government, there was no infringement of freedom of association rights in the office of the Accountant General, Kerala.

Responding to these contentions of the Government, the ILO has observed that the right to set up trade unions is denied to the workers in the Public sector, where as it is enjoyed by the workers in the Private sector. Thus these ‘associations’ do not enjoy the advantages and privileges as trade unions. This results in a discrimination of employees in Public Sector and their organizations when compared to the private sector. The ILO further observes that this situation is against the provisions in Articles 2,3 and 8 of the ILO convention NO. 87 which gives the employees and workers the right to establish and join organizations of their choice without previous authorization and hence section 6(b) of CCS(RSA) Rules is restrictive of freedom of association rights and has to be amended.

The ILO has also noticed that section 8 of CCS (RSA) Rules, 1993 which maintains that, if in the opinion of the Government, a service association recognized by the Government has failed to comply with any of the conditions set out in sections 5, 6 and 7 of the CCS (RSA) Rules, the Government may withdraw the recognition accorded to the latter. The ILO has observed that these provisions have been made on the basis of stipulations which are not in conformity with freedom of associations principles and hence are to be amended.

ILO has thus exposed the discrimination meted out as far as civil services are concerned when compared to private employees and has categorically demanded that the freedom of association rights be ensured to civil servants in India by amending the Rules that prevail over them today.

ILO demands to hold full and Independent Inquiry into incidents in the Kerala AG’s Office

It is in this background that the ILO has requested the Government to undertake a full and independent inquiry into the allegations of numerous and severe sanctions imposed on the leaders and hundreds of other employees and keep it informed of the outcome. The ILO has specifically demanded that if the investigations reveal that the parties concerned were sanctioned for having carried out peaceful programmes, then they may be fully redressed for the penalties imposed on them.


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