Collusive tendering practices: NAB, CCP sign MoU to take firm action

ISLAMABAD: Chairman National Accountability Bureau (NAB), Lieutenant General Nazir Ahmed Butt (Retd), has termed collusive practices in public procurement as “mega crimes against the economy” and vowed to take firm action against such conduct with the help of the Competition Commission of Pakistan (CCP).

“The rampant corruption and collusive tendering practices are draining our national resources. They must be addressed with urgency and firm resolve,” said the chairman NAB, speaking at the signing ceremony of a landmark Memorandum of Understanding (MoU) between NAB and CCP at the Commission’s Head Office in Islamabad on Tuesday.

The MoU, signed by Marryum Pervaiz, Secretary to Commission and Muhammad Tahir, Director General Operations NAB, lays the groundwork for robust cooperation between the two institutions to combat bid rigging, price fixing, and collusive tendering. The signing was witnessed by Chairman CCP, Dr Kabir Ahmed Sidhu, and Chairman NAB, along with senior officials from both institutions.

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Calling it a “strategic alliance,” the chairman NAB emphasized the critical role of CCP’s data-driven enforcement model in identifying cartel behavior and market abuse.

“The NAB can greatly benefit from CCP’s expertise in data analysis and its ability to detect and investigate cartelization. This collaboration will significantly improve our capacity to monitor public procurement processes,” he added.

The MoU outlines joint initiatives including capacity building, access to procurement data, identification of red flags, and coordinated investigation strategies. It establishes a formal mechanism for information exchange—allowing NAB to share evidence gathered under criminal thresholds and CCP to reciprocate with insights that support civil enforcement under the Competition Act, 2010.

Highlighting the NAB’s unique authority to review rules and regulations of government entities, Lt Gen Butt (Retd) said, “If loopholes are identified, we have the mandate to propose amendments. We hope to benefit from CCP’s technical support in aligning regulatory frameworks with principles of fair competition and transparency.”

Speaking on the occasion, Chairman CCP Dr Kabir Ahmed Sidhu said the partnership represents a critical institutional response to growing concerns over collusive practices in public sector tenders. “Bid rigging not only undermines the fairness of markets but leads to massive misuse of public funds. Tackling it requires a multi-agency approach,” he remarked.

Dr Sidhu revealed that CCP recently uncovered a bid-rigging cartel involving electricity distribution companies — a case that underscored the need for a prosecutorial ally such as NAB.

“While CCP operates under a civil standard of evidence, some cases reveal elements of criminal conduct. This is where NAB’s mandate becomes essential.”

He noted that CCP is upgrading its surveillance and enforcement tools by integrating advanced data analytics software capable of detecting pricing anomalies, coordinated supply restrictions, and suspicious bidding behavior.

“We are fully committed to ensuring market integrity using both technological and institutional reforms,” said Dr Sidhu.

He further underscored the value of NAB’s access to procurement databases such as the Electronic Procurement System (EPADS), saying this data, when coupled with CCP’s analytical expertise, could yield actionable intelligence on cartel behavior.

Both chairmen reaffirmed their commitment to use this collaboration as a launch pad for broader regulatory reforms and tougher enforcement against anti-competitive conduct in both public and private sectors.

“This MoU is not just symbolic—it is strategic. Together, NAB and CCP will work to protect the public interest and economic integrity of Pakistan,” said the chairman CCP, as the ceremony concluded.

Copyright Business Recorder, 2025