Revisiting controversy surrounding CAG's Rafale report

Excerpted from CAG Ensuring Accountability Amidst Controversies: An Inside View

- 

A seminal contribution to public accountability and reporting by CAG Mr Mehrishi was the much-discussed 'redacted' report (presented to Parliament in February 2019) on the acquisition of Rafale - fighter aircraft from France. This report concluded that the 2016 agreement for 36 Rafale aircraft was 2.86% cheaper than the previous proposal and included certain recommendations for improving the defence acquisition process.

The report on what was called 'the Rafale deal' was criticised for several omissions and 'redactions', particularly concerning pricing and cost-related details. Here's a summary of the criticisms:

a. Exclusion of Price Comparisons: the report compared the 2007 and 2016 deals but redacted the exact price figures of the aircraft and other cost details due to confidentiality clauses. Critics argued that this lack of transparency made it difficult to assess the government's claim of cost savings in the 2016 deal.

b. Omission of Offset Clauses: The report failed to analyse the offset agreements, including the role of private company Reliance Defence in Dassault's offset obligations, which had been a significant point of public and political debate.

c. Selective Focus: The report concentrated primarily on technical and procedural aspects whilst avoiding in-depth scrutiny of critical financial and contractual elements, particularly the pricing structure.

d. Lack of Accountability: By redacting key pricing details, the report failed to hold the government accountable for its claims of securing a 'better deal' in terms of cost and value for money.