CAG: Allegations of Corruption, Cronyism, and Cover-Up

CAG: Allegations of Corruption, Cronyism, and Cover-Up

CAG - the Comptroller and Auditor General of India is a cornerstone of accountability in India’s governance, tasked with auditing the Union and State governments, government bodies, third-tier administrations, PSUs amongst others. This role of the CAG ensures institutions stay transparent, accountable, and corruption-free. But when allegations of corruption, cronyism, and cover-ups infiltrate this office, the consequences reverberate far beyond its walls, threatening to destabilise the entire state and central government machinery.

In Part 1 of our series, we reveal a pattern of controversial foreign postings, allegations of corruption, and misconduct, and how the C&AG overlooked them, even awarding one of the officials a lucrative foreign posting. In these forthcoming stories under the series, we explain why the independence of the office of the Comptroller and Auditor General of India must not be compromised. As the CAG Girish Chandra Murmu’s term ends on November 21, 2024, his successor will again be chosen by the Prime Minister and appointed by the President, continuing a cycle that places the independence of this constitutional body under serious scrutiny. The CAG’s autonomy and the crisis it faces are more pressing than ever.

CAG's Foreign Posting Fiasco

On 21 August 2024 and again on 28 August 2024, an explosive, nearly 6,000-word email from "a cohort of vigilant employees working at the CAG office" reached senior officials within the institution. Signed off by the whistleblower on behalf of this group, the email detailed a series of serious allegations against Vishal Desai Bapusaheb, a senior official. Desai is a 2010 batch Indian Audit and Accounts Service (IA&AS) officer who was the Director (Personnel) at the time.

The accusations against Desai were damning, involving incidents of corruption and sexual misconduct allegedly occurring during an audit assignment in Mauritius. Moreover, the complaint claimed Desai engaged in sexual exploitation during the recruitment process for young professionals. The allegations extended to a bribery scheme linked to recruitment under the sports quota, alongside claims that, over the past four years, vacant posts at CAG Headquarters had been filled exclusively through bribery. According to the complainants, these allegations added to the growing list of financial misconduct within the organisation and raised serious concerns about the integrity of the internal financial management of the Comptroller and Auditor General of India’s office.

Complaints against Desai

Screenshot of the complaint against Vishal Desai Bapusaheb sent to senior officials within the office of the Comptroller and Auditor General of India | Courtesy: Source, The Probe

The complaint included annexures that the complainants, self-identified as current Comptroller and Auditor General of India officials, claimed provided documentary and photographic evidence to support some of their allegations. The Probe has obtained copies of these documents and photographic evidence. However, we have not independently verified the evidence or investigated the claims against Desai; responsibility for this lies with the competent authority.

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What followed, however, raises serious questions about accountability within the institution. Instead of initiating an inquiry to assess the truth behind these grave allegations—whether to exonerate Desai or hold him accountable—the organisation instead granted him a coveted foreign posting.

Desai's career profile

Vishal Desai Bapusaheb assumed the role of Principal Director of Audit, London, on September 6, 2024, just days after multiple complaints were filed against him with senior officials in the CAG. | Source: cag.gov.in

On September 6, 2024, just a few days after the complaint was received at the headquarters, Desai assumed charge as the Principal Director of Audit in London. This move sparked a hue and cry among 'whistleblowers' and other senior officials within the institution, who had long raised complaints against Desai. They felt that the serious allegations were being ignored, brushed under the carpet, and that the officer in question was instead rewarded with a prestigious foreign posting.

Desai was given permission to assume charge in London on September 6 despite requests from senior officials within the institution for an inquiry into his conduct. Notably, Geetali Tare, an Additional Deputy Comptroller & Auditor General, urged action in an August 28, 2024 communication. Tare argued that the complaint filed by the whistleblower should no longer be considered anonymous as the complainant had provided even his Aadhaar card copy and that the matters raised in the complaint provided substantial grounds for initiating a preliminary inquiry. This inquiry, she emphasised, was essential to either clear Desai’s name or confirm the truth behind the allegations, leading to appropriate action as per regulations.