- TIP points out corruption in procurement for Punjab Saaf Drinking Water project, warns against prequalifying M/s ACE and four other firms which have joined hands and made four different JVs
An international anti-corruption watchdog has asked Punjab Minister for Finance Dr Aisha Pasha to immediately call off the procurement for ‘Punjab Saaf Drinking Water’ project and prepare fresh list of shortlisted firms/JCs, and issue new letter of invitation (LOI) with the RFP.
The warning has been issued by Transparency International Pakistan (TIP) Chairman Sohail Muzaffar in a letter to the Punjab finance minister, a copy of which is available with Pakistan Today.
It is the first project in which the Punjab government has been warned against “corruption” as the TIP’s focus had been on Sindh and Khyber Pakhtunkhwa governments after the Punjab government had entered into an agreement with TIP to ensure transparency in governance. Mysteriously afterwards, the TIP had not raised any objection in any project since then.
In the letter addressed to Punjab Finance Minister and Punjab Saaf Pani Company Chairperson Dr Aisha Ghaus Pasha, the TIP referred to a complaint it received against what it called “the collusion” in approval of four joint ventures (JVs) of same firms in Saaf Drinking Water in LOI, bids to be submitted on July 2, 2015.
The TIP said that the Punjab Saaf Pani Company has approved consortium of four JVs: Engineering General Consultants (EGC) (Pvt) Ltd in association with Associated Consulting Engineering (Pvt) Ltd (ACE), ECSP & Dongbu Engineering; EGC (Pvt) Ltd in association with ACE, ECSP & SMEC; ACE (Pvt) Ltd in association with EGC, ECSP & Dongbu Engineering; and ACE (Pvt) Ltd in association with EGC, ECSP & SMEC.
“TI Pakistan has noted that M/s ACE and four other firms have joined hands and made four different JVs, and Punjab Saaf Pani Company has illegally prequalified them,” the letter said.
AGAINST PEC ACT:
The TIP said that according to the Pakistan Engineering Council (PEC) Act 1976, Punjab Saaf Pani Company has violated following provision of PEC (Conduct and Practice of Consulting Engineers) bylaws, 1986:
(14) Two or more consulting engineers partially or wholly owned or directed by common individuals, regardless of the extent of their shares or interest, are not eligible to offer or compete for the same project. Only one such consulting engineer shall be eligible to offer his services for a project: Provided that such consulting engineers may be permitted to form a joint venture to offer services as one venture.
“Kindly note that this act of bidders and officer of Punjab Saaf Pani Company, headed by the minister, is a corrupt act under Rule 2(f). Corrupt and fraudulent practices includes the offering, giving, receiving, or soliciting of anything of value to influence the action of a public official or the supplier or contractor in the procurement process or in contract execution to the detriment of the procuring agencies; or misrepresentation of facts in order to influence a procurement process or the execution of a contract, collusive practices 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,” it has been noted.
In this regard, the TIP has advised Punjab Saaf Pani Company to cancel the procurement, and prepare fresh list of shortlisted firms/JCs, and issue new LOI with RFP.
“In case of non compliance of above advice, the procurement may be declared as mis-procurement, in collusion with officers of Punjab Saaf Pani Company,” Sohail Muzaffar warned.
