The cash-strapped Capital Development Authority has obliged four contractor firms by awarding additional or new works costing Rs593.094 million without opting for open competition.
According to the annual audit report 2011-12, the CDA has awarded a number of new works as additional works valuing Rs493.405 million without open tendering in violation of public procurement rules.
As per rules, management concerned is not empowered to award new work as additional work to an existing contractor without calling open tenders. It only allows minor adjustments in the already awarded work so as to complete it in all aspects.
The public procurement rules also provide that procuring agency shall not repeat orders exceeding 15 percent of the original procurement.
The audit revealed that the scope of two works was enhanced by Rs99.689 million that was more than 15 percent of the original value of the work.
The report stated that absence of open competition compromised the transparent award, deprived the entity of the advantage of competitive rates and denied a fair opportunity to prospective bidders of participation in bidding process.
“This violation of rules involved a cumulative amount of Rs593.094 million,” said the audit.
The auditors observed that violation of rules occurred due to misuse of authority with no regard of achieving better value for money and weak internal controls.
After being pointed out by the audit, the CDA replied that the work was awarded as per site requirement and in some cases, the quantum of work was enhanced due to changes in site.
However, the CDA’s reply could not satisfy the audit authorities who observed that quantum of work was deliberately under-valued at time of tendering and enhanced after award of work.
The Departmental Audit Committee had also directive the authorities concerned to hold inquiry and fix responsibility but the compliance of these directives was yet awaited.
CDA awards Rs 593m additional work illegally
