Iron Ore & Coal Berth jetty: PSM negotiating privatisation without following procedure

IQBAL MIRZA

KARACHI: Pakistan Steel Mills is negotiating privatisation of "Iron Ore & Coal Berth" (IOCB) jetty, involving billions of rupees, at Port Qasim without following the procedure laid down for undertaking such an exercise.

Transparency International Pakistan (TIP) Adviser, Syed Adil Gilani, in a letter sent to the Chairman, Pakistan Steel Mills Corporation Ltd, Fazalullah Qureshi, on March 27 has drawn attention to reports circulating in this connection and sought his clarification.

He has informed the Chairman that in case the reports are correct, "Pakistan Steel is violating Public Procurement Rules 2004", as the services to manage the IOCB cannot be negotiated by Pakistan Steel Mills. "Such an act shall amount not only to mis-Procurement under Rule No 50, but also is an act of corrupt and fraudulent practices under Public Procurement Rules 2004, Rule 2(f).

The rule describes such an act as a collusive practice among bidders (prior to or after bid submission) designed to establish bid prices at artificial, non-competitive levels and to deprive the procuring agencies of the benefits of free and open competition".

Adil Gilani has requested the Chairman to confirm whether the news is correct or not, and if it is correct, "kindly direct the Pakistan Steel management to restrain from such illegal acts, and process the project in accordance with the requirements of Open Tendering under Rule No. 12, quoted below:   

Methods of advertisement:

(2) All procurement opportunities over two million rupees should be advertised on the Authority's website as well as in other print media or newspapers having wide circulation. The advertisement in the newspapers shall principally appear in at least two national dailies, one in English and the other in Urdu.

TIP is striving for Rule of Law in Pakistan, Adil Gilani said. Copies of the letter have been forwarded to Chairman, Public Accounts Committee, Islamabad, Chairman, NAB, Islamabad, Registrar, Supreme Court, Auditor General, Islamabad, and Managing Director, PPRA, Islamabad.