The Transparency International Pakistan (TIP) on Saturday drew the attention of Kuwait Fund for Arab Economic Development, Kuwait, towards alleged violation of Public Procurement Rules 2004 in procurement process for Golen Gol Hydropower Project.
The TIP found objectionable processes in awarding the contract of Lot 3.2 E&M Works to an unqualified consortium, which allegedly resulted in a loss of Rs 910 million to the national exchequer. The TIP letter, a copy of which is available with Pakistan Today, was written by its advisor Adil Gilani, and was directed to Fauzi Yousef Al-Hunaif, director operations of Kuwait Fund for Arab Economic Development, Kuwait. Gilani stated that the approval of Rs 106 million by a review committee of the Water and Power Development Authority (WAPDA) on the financial bid of M/s Andritz was contradictory to the recommendations given by Consultants M/s Fichtner, Austria.
“And if the consultant’s evaluation was biased towards M/s Andritz’s bid, WAPDA should have taken action against the consultant under Rule 2(f) ‘corrupt and fraudulent practices’ which also includes collusive practice among bidders (prior to or after bid submission) designed to establish bid prices at artificial, non-competitive levels and to deprive the procuring agencies of the benefits of free and open competition,” the letter stated.
The letter further said that the inquiry committee of Ministry of Water and Power in its report dated January 5, 2012, had already identified the biased evaluation of WAPDA technical committee.
“In accordance with the Public Procurement Rules 2004, there is no provision of obtaining any comment from an outside consultant. Secondly, asking M/s NESPAK to evaluate the tender, raises doubts about the transparent handling of the procurement, as NESPAK is a subordinate body of Ministry of Water and Power. This is also reported that the President NESPAK whose term has expired, is still continuing, and has been trying toget two years contract from the Ministry
of Water and Power,” it added.
The TI also lauded Kuwait Fund’s letter to the EDA, requesting Finance Ministry’s conformations on TIP’s objections’ clearance and NOC from the Public Procurement Rules Authority (PPRA). Gilani told the fund that a reply to WAPDA’s letter dated May 21, 2012, was sent by his organization on May 29, 2012. He also forwarded the copies of TIP’s reply and WAPDA’s letter to Kuwait Fund as reference. Gilani also forwarded copies of the letter to the Public Accounts Committee chairman, National Accountability Bureau chairman, Finance Minister Dr Hafeez Shaikh, the Supreme Court registrar, and the PPRA managing director.
