Award of contracts to favourite firms: TI Pakistan seeks clarification from SSGC

Sui Southern Gas Company Ltd (SSGCL) has pre-qualified few contractors for pipe laying and distributed contracts amongst them without open bidding on a pre-determined rate. Adviser to Transparency International Pakistan, Syed Adil Gilani has through a letter sent on August 24 to the Managing Director, SSGCL sought clarification to the complaint received in this regard by Transparency International Pakistan.
While expressing concern, Transparency International Pakistan has requested SSGCL to further confirm allegations published in Business Recorder in its issue of August 24 regarding award of contracts to favourite firms in utter disregard and violation of Public Procurement Regulatory Authority (PPRA) rules 2004.
Adil Gilani has pointed out following allegations, which need examination and clarification:- Specifications are oriented to one manufacturer. This is not allowed under Rule No 10, which states that specifications shall allow the widest possible competition and shall not favour a single contractor or supplier nor put others at a disadvantage. Specifications shall be generic and shall not include references to brand names, model numbers, catalogue numbers or similar classifications.
- Similarly Rule No 32 relating to discriminatory and difficult conditions. No procuring agency shall introduce any condition, which discriminates between bidders or that is considered to be difficult. In ascertaining the discriminatory or difficult nature of any condition reference shall be made to the ordinary practices of the trade, manufacturing, construction business or service to which that particular procurement is related. According to Rule No 50 any unauthorised breach of these rules shall amount to mis-procurement. PPRA rules 2004 are mandatory, he said.
Transparency International Pakistan Adviser has warned that in case the allegations are proved to be true, then under PPRA Rule No 2(f), it is a collusive practice and designed to establish bid prices at artificial, non-competitive levels and to deprive the procuring agencies of the benefits of free and open competition, and under Rule 7 "Integrity pact," the contractor may have to pay 10 times the loss to Government of Pakistan. Copies of the letter have been forwarded to: Chairman, Public Accounts Committee, Auditor General of Pakistan, Managing Director, PPRA, and Chairman, National Accountability Bureau.