The Transparency International (TI) Pakistan has diverted the attention of Federal Board of Revenue (FBR) Chairman Ali Arshad Hakeem towards alleged violation of Tracking and Monitoring of Cargo Rules favoring a single company for creating a monopoly and creating exclusive rights for business of Rs 800 million per annum.
In a letter written by TI Pakistan (TIP) Executive Director Saad Rashid to Hakeem, a copy of which is available with Pakistan Today, it was informed that Transparency TIP had received a complaint against SRO 413 (I)/2012-Tracking and Monitoring of Cargo Rules, with allegations that the commercial terms made statuary therein being stated to be beyond the mandate of FBR under the Customs Act 1969, with objective to favor only one company M/s TPL Trakker Ltd and creating entry barriers for other service providers, were in direct conflict with the fundamental rights guaranteed under Articles 8, 18 and 25 of the constitution and in violation of Section 4 of CCP Act 2010 and PPRA.
Following are the allegations;
1. That FBR initiated the process of tendering for Tracking and Monitoring of Cargo in February 1, 2011, after company of CEO of M/s TPL Trakker, who is Member of Advisory Committee of the Federal Tax Ombudsman M/s TPL Trakker Ltd gave a presentation in 2010. The terms of the tender were not discussed with any other stake holder, i.e other over a dozen tracking companies already operating in Pakistan.
2. That coincidently, CEO of M/s TPL Trakker was also appointed by Abdul Hafeez Shaikh, minister of finance, as a member of the Reform Co-ordination Group (TRCG) of FBR.
3. FBR sent a letter of invitation to 16 operating companies, and 12 companies were shortlisted, and then financial proposals were requested on September 10, 2011 from five companies and opened on September 25, 2011.
4. That Abdul Hafeez Shaikh, minister of finance, and FBR chairman met Pak-American Business leaders at IMF-World Bank Meetings in USA on September 24, 2011.
5. That on September 27, 2011, CEO of M/s TPL Trakker Ltd signed a $20 million agreement for their building project in Karachi by TPLK Holdings with IFC of World Bank in presence of the minister of finance and FBR chairman.
6. That on October 5, 2011 the committee of FBR recommended that due to reason of defective evaluation criteria it was not possible to evaluate the proposals, and a single proposal may be selected as per terms given in tender, which may result in creation of monopoly and litigations and criticism of favoritism by FBR. The committee recommended to re-invite the proposals.
7. That FBR did not take any decision on this tender for six-and-a-half months.
8. That without discharging the tenders, which is mandatory under Public Procurement Rules 2004, all of sudden on April 25, 2012 , FBR unilaterally issued SRO 413 (I)/2012-Tracking and Monitoring of Cargo Rules 2012.
9. That theses rules are one company oriented, and has created a monopoly.
10. That as the terms of SRO 413 (1)/2012, and Custom Public Notice of 27/6/2012 are only made for M/s TPL Trakker Ltd, no other tacking company is issued license by FBR, and warnings are being issued to Cargo Companies by FBR to get their vehicles installed with Trackers from only M/s TPL Trakker Ltd, and in fact letters issued by FBR to trade confirms that FBR has become marketing agents of M/s TPL Trakker Ltd. (Annex-B).
11. That FBR through SRO 413 (1)/2012 has created annual business of over Rs 800 million for M/s TPL Trakker Ltd, at the cost of trade and other tracking companies.
“This is to state that FBR should have rejected and discharged the Tender invited in September 2011 as described below according to Public Procurement Rues 2004, Rule No 33, and inform all bidders, which FBR failed to comply, but issued SRO 413 (I)/2012 in April 2012.
TIP has requested the FBR chairman to urgently examine the complaint and resolve the issue of monopoly created by the FBR for one company which was also an issue of conflict of interest as this company belonged to one of the members of its governing body, Reform Co-ordination Group (TRCG), because FBR has issued a cutoff date of August 30, 2012 to start implementing this SRO.
Chor Bain.sare
We can expect any thing from this corrupt government….May ALLAH help Pakistan…
Not even surprised
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