Application of PPR 2004, PPRA law 2002: exemption granted to NLC is corruption: TI Pakistan

Exemption from the application of PPRA Ordinance 2002 and Public Procurement Rules 2004 granted to National Logistics Cell (NLC) by Planning Commission is Corruption, according to Transparency International Pakistan.
Adviser Transparency International Pakistan, Syed Adil Gilani in a letter sent on March 31 to Deputy Chairman, Planning Commission, Dr Nadeem ul Haq informed him that Transparency International Pakistan had received the copy of clarification given by his division to Public Procurement Regulatory Authority (PPRA), on the alleged illegal exemption granted to NLC by the Planning Commission.
Planning Commission has informed PPRA/Cabinet Division that the Public Procurement Rules 2004 is silent on the subject of application of Public Procurement Rules 2004 on contractors being a government entity. This is a false statement, Gilani said. Planning Commission, he said had also requested the PPRA/Cabinet Division that "in the absence of specific provision in the rules, government [competent authority] may issue policy which is upheld vide Rule 38 of PPRA Rules 2004".
According to the PPRA Ordinance 2002 and the Public Procurement Rules 2004 no such issue exist, as the provisions for format and mandatory requirements of Bid Guarantee, Performance Guarantee, CAR Insurance Policies and Retention Money are available in detail in the Public Procurement Rules 2004, and PPRA Regulations of 2008. According to Rule 23 (k), format of all securities required is to be part of the bidding documents, and according to SRO 805(I)/2008 of 11th July 2008 (Public Procurement Regulations 2008), standard bidding documents of Pakistan Engineering Council are mandatory on all the procuring agencies.
Under the PEC standard bidding documents, the format of performance security, bid bond, insurance guarantee, bank guarantee have been defined in explicit terms, which are mandatory on all the procuring agency to ask from all the contractors to provide, including the government owned manufacturers, suppliers or consultants.
The exemption from mandatory requirements of Bid Guarantee, Performance Guarantee, CAR Insurance Policies and Retention Money, accorded to NLC vide Planning omission letter No P&D Division's UO No 4 (176) Ad-VII/PD/NLC2000 dated 01-08-2007, sent to Brigadier Nisar Ahmed Mir, HQ Engineer NLC Sowan Camp, Rawalpindi, is therefore illegal. Planning Commission will be held responsible by the CCP for violating competitive laws, as PC has been responsible to accord 20-25 percent advantage to NLC against other contractors of Pakistan, Gilani said.
Transparency International Pakistan again requested the Chairman PC not to circumvent the laws, and to take action according to the Public Procurement Rules 2004, which has also been upheld by the Supreme Court of Pakistan in the suo moto case of the Alleged Corruption in Rental Power Plants judgement announced on March 30, and immediately withdraw all such exemptions granted to NLC.
Copies of the letter have been forwarded for information and action to be taken under the Rule of Law to Chairman, Public Accounts Committee, Islamabad; Chairman, PQA, Karachi; Chairman, NAB, Islamabad; Chairperson, CCP, Islamabad; Registrar, Supreme Court of Pakistan, Islamabad; Auditor General, Islamabad, and Managing Director, PPRA, Islamabad.
Adil Gilani has also reminded the Finance Minister that Transparency International Pakistan had written to him on February 2, about this illegal act of the Planning Commission, but no response has been received from his office. This act of PC negates the CCP Laws, and also the government Policy of Privatisation. NLC is doing commercial activities like building plazas in Karachi, share dealings in Stock Exchange, and many more commercial ventures. FBR has also pending claim of billion of rupees of Income Tax on NLC. Transparency International Pakistan, therefore requested the Minister to act in accordance to the laws of Pakistan in this particular issue.