TRANSPARENCY 5, on ar ry
tg Alert Kae
INTERNATIONAL-PAKISTAN ag ac sey amaaaall
Website: www:tansparencrora.ok
8 July 2010
‘Muhammad Shahbaz Sharif,
Chief Minister,
Chief Ministers Secretariat,
7.Club Road, GOR,
Lahore
Sub: Mis-Procurement under Punjab Procurement Rules, 2009 by Exec ive Director
aera nay Punjab Government Services Housing Foundation Mr. Aftab Islam Agha,
Respected Sir,
“Transparency Intemational, Pakistan is reporting the fist mis-procurement Coe in Punjab under
the, Punjab. Procurement Rules, 2009 by Awarding a Consullaney Contract, inspire of this
paricular procurement was declared as mis-prosurement by MD PPRA, vide his letters dated 22
aan ep1O, and 29 Tune 2010, by Executive Director (Engineering) Punjab Government Services
Housing Foundation Mr. Aftab Islam Agha
‘A complaint receved from M/s ECIL was examined by TI Pakistan, and beside other complaints
SEMICECIL that the department was not providing documents in time, ( obviously an allegation
or ttvaion under Rule No 2 (f))y it was also established thatthe said procurement hhas been
processed in violation of Purjab Procurement Rules, 2009, as ‘the evaluation criteria was based
i scores of technical plus financial marks, and not the lowest evaluated responsive bid.
‘This i also to point out that selection of Consultancy firms is to processed under Rule No. 36.
Procedures of open competitive bidding, which a single stage ~ two envelope procedure, In this
method the procuring agency shall evaluate the technical proposal in a manner prescribed in
ruvanee, without reference to the price and reject any preposal which do not conform to the
specified requirements, The financial proposals of bids shall be ‘opened publicly at a time, date
wr} venue announced end communicated to the bidders in advance. After the evaluation and
approval of the technical propos! the procuring agency, shall at ting within the i
period, publicly open the financial proposals of the technically ‘accepted bids only ,and the bid
found to be the lowest evaluated bid shall be accepted.
Any other method of selection, like PEC prescribed method of QCBS at 80:20, or Punjab
aay ment Services Housing Foundation method prescribed in this RF P. 85:19 being the
Chngal and financial weight ages, are not allowed in PPR 2004, and all such contracts
vrrarded, are t be declared as mis-procurement under PP Rule No 50, and are subject to action
tebe taken under Rule 2 () corrupt practices. The los if incurred to the exchequer due to the
sch legal awards, are o be recovered at 10 times the loss fo government the terms of Integrity
Pact”
[ANON-PARTISAN, NON-PROFIT COALITION AGAINST CORRUPTION
Sea vane exempted rom tak WIS 2 (36) (c) a1, Tax Ordnance 2001TRANS PAR A Os ox Continuation Sheet No...
INTERNATIONAL-PAKISTAN
“The other violations committed is under the Rule No 35, Evaluation Report to be provided to
dadors 10 days before award for filing objections, which has not ‘been complied for the obvious
reasons.
“1 akistan fects that this is perfect cse of compton as described in Rule 2(), “corrupt and
Fradclent practices” includes the collusive pracices among bidders (prior to orafter bid
evnission) designed to establish bid prices at artificial, no ‘competitive levels and to deprive the
seruring agencies ofthe benefits of fee ard open competition.
We request the Chief Minister to kindly constitute a committee to investigate the allegations
made by M/s ECIL, for deliberate violations ‘of Rules by Executive Director (Engineering)
Punjab Government Services Housing Foundation, and the efforts to award this contract to Ms
Nespak, wich is also the previous employer of ME ‘Aftab Islan Agha, and not following the
Rules No 36 and Rule No 35, and against the advices of MD PPRA, sent to the departément vide
PPRA letters dated 22 June 2010, and 29 June 2010.
Rule of Law is supreme in Pakistan, The ultimate goal of Public Procurement Rules 2004, beside
tnsuring, that the procurements are conducted in a fai ‘and transparent manner, the object of
procurement brings value for money to the agency ‘and the procurement process is efficient and
‘economical, is to make corruption @ ‘high risk” and “ low return” undertaking.
‘TIP would like to quote Supreme Court order given of 128" April 2010, in the case of award of
siktabllion dollar LNG contract to GDF-Suea, in which the SC has announced that its the duty
‘ofthe Court to ensure the application of Publis Procurement Rules 2004.
Yorg Sincerely,
Copies forwarded for the information of;
1. Chief Justice, Lahore High Court, Lahore
3 Br. Taugir Shah, Principal Secretary to CM Punjab,
3. Managing Director, PPRA Punjab, Lahore.fo” No. MD(PPRA)1-10/2009
it} GOVERNMENT OF THE PUNJAB
SS, SERVICES & GENERAL ADMINISTRATION
DEPARTMENT
(PUNJAB PROCUREMENT REGULA’ RITY)
Tel. 042-99211490 a TORY AUTHO!
Dated Lahore, the June 22 , 2010
To
The Managing Director.
Punjab Goverment Servant,
Housing Foundation,
Punjab, Lahore.
Subject:- COM! (NT. INST PI NT.
Hi FOU! \TION, HF).
Please refer to PPRA, Cabinet Division, Islamabad's letter No. F.1(44)/DD-
I/PPRA/2010, dated June 11, 2010, and this office letter of even number dated
17.6.2010, on the subject noted above.
2 Keeping in view the complaint of ECIL and the subsequent letter from the
Cabinet Division dated 11.6.2010, the captioned procurement process if carried on
would amount to mis-procurement under rule 50 of Punjab Procurement Rules 2009.
3. You are therefore required to re-invite the tenders avoiding any breach of
these rules and keeping in view the requirements of transparency regarding the
principle of “equal opportunity”.
4. This Is for your kind Information and necessary action please.
(IMRAN NASIR KHAN)
‘Managing Director PPRA
cc:
1. Managing Director, PPRA, Istamabad.
2 Accountant General Punjab, Lahore.
3.—Chairman, Transparency International, Karachi,(2 No. MD(PPRA)1-10/2009
{—-.\ GOVERNMENT OF THE PUNJAB
SS SERVICES & GENERAL ADMINISTRATION
DEPARTMENT
PUNJAB PROCUREMENT RE\
Te’, 042-99211490 ( >UREM ;GULATORY AUTHORITY)
i Dated Lahore, the June 29 , 2010
0
The Managing Director.
Punjab Government Servant,
Housing Foundation,
Punjab, Lahore.
Subject: COMPLAINT AGAINST PUNJAB GOVERNMENT SERVANTS
HOUSING FOUNDATION HF).
Please refer to this department's letter of even number dated 22.6.2010
on the subject noted above.
2. Your office letter number PGSHF/PA/ED9E)/06/2010-8968 Is not
satisfactory, as the entire process has already been declared as mis-procurement under
rule 50 of Punjab Procurement Rules.
3. Tt has come to the knowledge of this office that tenders have not been re-
invited, thus violating the instructions given in our letter referred above.
4. You are required to do the needful under intimation to this office.
| _!
(IMRAN NASIR KHAN)
Managing Director PPRA
cc:
Chief Minister's Secretariat, Lahore.
Managing Director, PPRA, Islamabad.
Accountant General Punjab, Lahore.
Director General (Audit), Punjab, Lahore.
Chairman, Transparency International, Karachi.
\\ sueNo. MD(PPRA)1-10/2009
GOVERNMENT OF THE PUNJAB
SERVICES & GENERAL ADMINISTRATION
DEPARTMENT
(PUNJAB PROCUREMENT REGULATORY AUTHORITY)
Tel, 042-99211490 Dated Lahore, the June 11 , 2010
To -
the Secretary.
Government of the Punjab,
Housing Department,
‘Subject:- COMPLAINT AGAINST PUNJAB GOVERNMENT SERVANTS
Hi 1G FO! ‘TION, SHE).
Please find endosed a complaint No. ECIL/D&C/67/2010/2600, dated
09,06.2010, received from M/s Engineering Consultants International (Pvt) Ltd. (ECIL)
regarding violation of PPRA received from Transparency International.
2. You are requested to seek comments from the PGSH Foundation
regarding the enclosed complaint on the captioned subject.
3. ‘There has allegedly been a violation of Rule 36 of Punjab Procurement
Rules 2009 by the concerned officers/afficials.
4. A reply within three days would be appreciated please.
J
(IMRAN NASIR KHAN)
‘Managing Director PPRA
1. ° Chief Minister’s Secretariat, Punjab.
2. Chairman, Transparency International Pakistan.omen conaurenre mmnTonn rete | Sate apts ate
nS Ess) SSeS SS