ASIA NEWS NETWORK
WE KNOW ASIA BETTER
Transparency asks Pakistani govt to take action against officials
Publication Date : 03-09-2013
The Transparency International Pakistan has alleged violation of Public Procurement Rules (PPR) 2004 in the Golen Gol hydropower project and has urged the federal government to follow rules and also take action against officials who caused a delay in the project which might have caused a loss of approximately 15 billion Pakistani rupees (US$141 million), it was learnt here on Monday.
In an August 31 communication to the Federal Minister for Water and Power Khwaja Asif, TIP official Adil Gilani urged him to investigate as to why old tenders of the project had been cancelled and new tenders invited and why the opening date for the new tender was repeatedly extended and while the new tender process has been initiated why efforts are being made to revive the old and cancelled tender process.
The TIP official says in the letter that after the intervention of former prime minister Raja Pervez Ashraf and National Accountability Bureau, the Ministry of Water and Power (MoW&P) cancelled tenders for the project in October last year and invited new tenders for the project – Golen Gol Hydropower Project Lot 3.2 E&M Works in April this year after a delay of six months. The delay caused escalation in the cost of the project.
He said that the tender opening date had been extended four times from the initial date of May to June 14 this year and then to June 24 and then to July 4 and now it has been extended to September 27. He said the law allowed only one extension. He alleged that non-opening of tenders in June was a collusive act of the Ministry of Water and Power and Water and Power Development Authority (wapda).
He said that while new tender had been invited and was under process, why MoW&P/Wapda officials approached National Accounting Bureau (NAB) on August 7 this year to allow the process of the old bid and without informing NAB that new tender process had already been initiated four months earlier.
He said that NAB, while responding to the Ministry of Water and Power on August 20 this year, had reaffirmed its earlier (2012) decision which was in accordance with requirements of law and in fully compliance with the PPR 2004.
He said that the cost of the lot 3.2 E&M Works in two years, because of the failure of the Ministry of Water and Power and Wapda to award the tender, might have increased from 30 billion Pakistani rupees to 45 billion Pakistani rupees and the extra cost would have to be paid by people.
The TIP official urged the minister to order Wapda/MoW&P officials to comply with PPR 2004 and open the tender without delay and also order an inquiry and action against the officials responsible for the delay in the project.
He said it appeared that the new government had not made any change in the collusive practices of Wapda. The Competition Commission Pakistan, he said, had noted in its report on corruption between 2008 and 2011 involving contracts of 45.2 billion Pakistani rupees relating to transformers and switchgears in Wapda by a cartel of over 10 contractors.
The TIP has sent copies of the letter to the Prime Minister’s Secretariat; Director General of NAB; Supreme Court of Pakistan; Puplic Procecurment Regulatory Authority Managing Director; secretary of MoW&P and Kuwait Development Fund.