ISLAMABAD: Transparency International Pakistan (TIP) has raised serious concerns over alleged violations of public procurement rules by Sui Northern Gas Pipelines Limited (SNGPL) in a recent tender, urging authorities to declare the process as “mis-procurement” and cancel the contract.
In a letter addressed to the Managing Director of the Public Procurement Regulatory Authority (PPRA), TIP highlighted irregularities in Tender No. SNC-1930/25, which pertains to the procurement of air intake filter elements and pre-filter stocks.
According to the complaint reviewed by TIP, SNGPL had invited bids for the procurement with a closing date of October 28, 2025.
However, one of the participating firms, M/s Qaim, was declared non-responsive on multiple grounds, including discrepancies the manufacturer listed in performance test reports and alleged non-compliance with specific tender clauses.
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The firm subsequently challenged the decision before the Grievance Redressal Committee (GRC) and later approached PPRA. In its ruling, PPRA observed that the procurement requirement appeared to be intended for foreign bidders.
TIP noted that this observation raises serious legal and procedural concerns. It argued that restricting participation to foreign bidders effectively excluded domestic manufacturers, which is contrary to the Public Procurement Rules 2004 and undermines government policies aimed at promoting local industry.
“Prima facie, the allegations seem correct,” TIP stated in its assessment, adding that such actions fall under the definition of mis-procurement as outlined in Rule 50 of PPRA Rules, which classifies any unauthorized breach of procurement procedures as a violation.
The watchdog organization further pointed out that under Rule 24, procuring agencies are required to allow fair competition and provide preference to domestic suppliers when competing with international bidders. Policies such as SRO 827 mandate either a minimum 20 percent value addition through local manufacturing or a 15 percent price preference for domestic producers.
By allegedly structuring the tender in a way that favoured foreign suppliers, SNGPL may have violated these provisions, TIP said. It added that this not only disadvantages local manufacturers but also contradicts the federal government’s broader objective of strengthening domestic industry and promoting economic growth.
TIP also criticized PPRA for not formally declaring the procurement as mis-procurement despite identifying violations. It stressed that under the rules, any breach automatically qualifies as mis-procurement and should trigger corrective measures.
The organization has recommended that PPRA direct SNGPL to cancel the contract and re-initiate the tender process in full compliance with procurement laws. It further suggested that the Integrity Pact provisions be invoked, which could require recovery of an amount equivalent to ten times the contract value in case of proven violations.
Additionally, TIP called for action against officials found responsible for the alleged irregularities under applicable anti-corruption laws.
The letter has also been forwarded to key government authorities, including the Prime Minister’s Office, Petroleum Division, National Accountability Bureau (NAB), Federal Investigation Agency (FIA), and other relevant institutions, urging them to take appropriate action within their respective mandates.
Clarifying its role, TIP stated that it is not a direct complainant but acts as a whistleblower organisation, advocating transparency and accountability under Article 19-A of the Constitution, which guarantees citizens the right to access information about public affairs.
TIP maintained that the case adds to growing concerns about transparency in public procurement processes and highlights the need for strict adherence to established rules to ensure fair competition and prevent corruption.
Copyright Business Recorder, 2026