DGCA to staff: Do not audit companies with 'conflict of interest'

New Delhi: The Directorate General of Civil Aviation (DGCA), in a move to control instances of nepotism in regulation, has reiterated that employees should not audit companies, where there is a conflict of interest.
“Avoidance of 'conflict of interest' is a Sine qua non of good governance. Instances of DGCA officers participating in meetings/spot checks have come to notice in which this golden rule has been given a go-bye. Therefore, this intervention is made to reiterate that under no circumstances, any of DGCA officials shall partake in deliberations/spot checks or any other official engagement, where he or she has a 'conflict of interest'... It may be noted that integrity and credibility of DGCA is supreme and any compromise shall entail severe action,” said an internal order seen by ET.

A number of DGCA officials have acquaintances – friends or family – working with companies that they audit as part of their job.

“We found that some of our officials were showing extra interest in auditing companies with their friends and family in it. We would want such officials to stay away from auditing such companies,” said a senior DGCA official, who did not want to be identified.

Sources added that this order was reiterated after DG Arun Kumar came across such instances.

Officials, however, added that no action has been taken against any of these erring employees. “We did not come across any instance, where such an action was warranted against any employee,” the official added.

There have been instances in the past, where aviation regulator has alleged to have ignored such diktats leading to conflict of interest in audits.

Officials added that such reiteration of the order would warn employees to follow the rule of government. Action would follow, if any employee is found to be violating this diktat.