It's all about love, finds CAG.

When the Delhi government asked the Comptroller and Auditor General of India, CAG, to audit the 3 private power distribution companies in the capital last year they did everything to prevent the audit, repeatedly appealing to courts, saying that the CAG has no authority to audit private companies. We wondered why? Why should a company refuse a free audit when large accounting firms charge in millions. We got the answer yesterday when the CAG reported that customers have been taken for a ride by all 3 companies to the tune of Rs 80 billion. How did they do it? They manipulated consumer figures, bought costly power, suppressed revenue and gave undue favors to group firms. They misrepresented facts to the regulator, miscalculated assets and inflated costs. They had long term purchase agreements with power plants, for which they charged consumers, without buying any power from those plants. They also purchased an excess of power so Delhi was the only power surplus state in north India. Why then do we suffer from long periods of power cuts? They charged customers for replacing faulty meters even though the manufacturer was supposed to pay for them. There was serious conflict of interest in dealing with companies of the same group. Although the Delhi government owns 49% of equity, having invested Rs 7.5 billion in the companies, government representatives rarely turned up at board meetings. As wonderful an example of crony capitalism as we are likely to see. Perhaps the CAG should have accessed bank accounts of some of the officials. Let us see what other delights the CAG has reported in recent months. Land acquired for Special Economic Zones were sold off or put to other uses by the companies. When the CAG started to investigate 47 files regarding SEZs went missing. No doubt innocently destroyed by government officials. Rs 9 billion of illegal toll collected by highway operators were not declared to the Highway Authority. Civil servants are cheating the taxpayer of billions of rupees by being paid for fictitious medical, travel and other expenses. Municipal corporations of Delhi were found to have financial irregularities worth Rs 2.5 billion. We pay enormous charges for poor services, broken roads and piles of stinking garbage. Business fellows, or so called promoters, are milking companies by taking massive salaries. When Lord Black tried the same trick in the US he went to prison for 3 years and was fined heavily. Poor shareholders may not even know whether the same fellows actually own any shares in the company or have borrowed money from banks by pledging them. Politicians, civil servants and politicians in tight embrace. We observe their romance.