Transparency in procurement: OGDCL told to follow PPRA 2004 rules

Securities and Exchange Commission of Pakistan (SECP) has advised Oil and Gas Development Company Limited (OGDCL) to follow PPRA 2004 rules to ensure transparency in procurement.
Transparency International (TI) Pakistan wrote a letter to the SECP on February 11, 2012 titled "violation of Public Procurement Rules 2004 by OGDCL under assumed exception from PPRA Ordinance 2002 and PPRA Rules 2004 under Company Ordinance 1984" requesting the SECP to issue directives to all government owned organisations including OGDCL registered under the Companies Ordinance, 1984 that the Public Procurement Rules 2004 are applicable on them.
SECP, in a letter communicated on January 24, 2012 stated that enforcing application of PPRA Ordinance and Rules does not fall within its jurisdiction. However, the Commission with a view to support TI in its objective to ensure compliance of PPRA Ordinance and Rules stipulated that to 'exhibit transparency' it shall issue letters to all such companies which are "established by or under a federal law or which is owned or controlled by the federal government" and registered under Companies Ordinance, 1984 informing them the stance of PPRA on applicability of PPRA Ordinance and Rules. Earlier OGDCL had refused to implement Public Procurement Rules Authority 2004 in hiring of auditors.
"PPRA Rules 2004, however, cannot in any manner override the provisions of the Companies Ordinance and attributing redundancy to the provisions of the Companies Ordinance by relying on some rules would in itself lead to illegality," the sources quoted Eram Ali Aziz, Company Secretary stating in a letter to Transparency International Pakistan. TI Pakistan had examined the sections of the OGDCL Ordinance at length and a perusal of the same indicates that the OGDC has been established under the OGDC Ordinance 1966, as a statutory body wherein a Central Board has been delegated all powers relating to general superintendence and direction of affairs and business of the OGDC.
Thus, it is evident that the OGDC has been established under a Federal Law by the Federal government. The Chairman and Managing Director of the Board are appointed by the Federal Government and also members therein are approved by the Federal government prior to their election by the share holders.