Supreme Court directs government to enter into contract in transparent manner

The Supreme Court has directed the federal government to enter into 'Safe City Project' - security venture in Islamabad and Peshawar - with Huawei Technologies in highly transparent manner.
A three-member bench comprising Chief Justice Iftikhar Mohammad Chaudhary , Justice Muhammad Sair Ali and Justice Ghulam Rabbani was hearing the constitutional petition under Article 184 of Constitution regarding award of $233.7 million contract to Huawei Technologies. Shahid Orakzai filed the petition, for directing the government to cancel the contract.
In the course of hearing, the CJP observed: "This project does not seem to be a transparent," and added that there should be open bidding for the purchase of security equipment from the Chinese firm. He remarked that the government was bound constitutionally and legally to enter into any project for supply of equipment in a highly transparent manner.
Ministry of Interior counsel Afnan Kundi told the bench that the project of equipment purchase was in the planning and approval stage. He said that price assessment committee comprising officials of Ministry of Information Technology, Secretaries Finance and Interior and chairman Nadra are assessing the equipment price.
The counsel added that accepting loans from the Chinese bank did not mean that equipment would be purchased in a non-transparent manner. He said the loans is tied to Chinese company. He said that it was one of the conditions of Chinese bank to pre-select the partner before applying for the loans.
Kundi said that they have followed the Pepra rules before entering into contract. The petitioner, Shahid Orakzai contended that the federation signed a contract in February worth $233.7 million with Huawei Technologies Company Limited, China, for an extravagant security venture in Islamabad and Peshawar involving $124.7 million and $109 million respectively.
He submitted that the equipment is reportedly priced three times the current market rates while press reports alleged massive kickbacks and commissions in the contract. He alleged that the government of Pakistan entered into this project for having soft loan from Chinese Bank - EXI as a prerequisite. He added that in view of clauses 1 and 2 of section 14 of the contract, it would not be possible to cancel the deal.
The case was adjourned for Thursday.