Transparency International Pakistan (TIP) smells a rat in Trade Development Authority of Pakistan's (TDAP's) tenders and award of contracts for EXPO YEOSU 2012, Korea and EXPO 2010 in China.
In response to the letter written by Najeeb Khawar Awan, Joint Secretary, Ministry of Commerce on December 18 to TIP, to provide "substantive evidence" and "concrete information" regarding alleged corruption and violation of Public Procurement Regulatory Authority's rules, Syed Adil Gilani, Chairman, TIP said that its report on corruption in TDAP is based on various violations by the Authority of PPRA rules and non-compliance of the mandatory requirements under the Public Procurement Rules (PPR) 2004.
In his letter sent to Zafar Mahmood, Secretary, Ministry of Commerce on January 6, Gilani wondered "how could TDAP invite tenders like event manager for EXPO YEOSU 2012, Korea without providing details of the terms and conditions, specifications and evaluation criteria to award contracts". TIP had been pointing out the violations by TDAP to all relevant agencies.
Many contracts like EXPO 2010 in China, consultancies in June and September 2009 were awarded in violation of the rules. He has suggested the Secretary to ensure that all departments under his ministry complied with the law of the land, and fully observe compliance of PPR 2004.
World Expo 2012 is scheduled to be held in YEOSU Republic of Korea from May 12 to August 12, 2012. The theme of the Expo is the living Ocean and Coast with four sub-themes ie (a) The preservation of the Oceans, (b) High value added ocean industry, (c) Development of ocean resources and technology, and (d) The ocean cultural activities.
The YEOSU Expo would provide an opportunity to enhance the international community's perception of the function and value of the ocean and coast, share knowledge on the proper use of the ocean and the coast and recognise the need for co-operation in the marine sector.
Regarding YEOSU Expo, TDAP in a letter sent to TIP in November clarified its position as under: TDAP had released an advertisement in national newspaper on November 21 inviting "Expression of Interest" (EoI) from companies willing to organise the event in a befitting manner. It was clearly indicated in the EoI that TDAP will not provide any financial assistance to the selected company.
The expenditure incurred on the Expo will be met by the consultant/event manager from its own resources and no financial liability would accrue to the Government of Pakistan or TDAP. On TIP's observation that TDAP is not providing a set of bidding documents to the applicants under rule 23 of PPR - 2004, it was pointed out that the rule applies only to those cases where procurement is made by the procuring agency.
In this case TDAP is neither making any procurement nor providing any financial assistance to the event organiser/consultant, hence the question of providing a set of bidding documents to the applicants does not arise. In the EoI, TDAP has laid down clear and unambiguous criteria for the selection of a suitable event manager/consultant for Expo YEOSU 2012, Korea, which TDAP will strictly adhere to with a view to ensuring transparency and fair play.
Rejecting TIP's contention that TDAP should re-invite the pre-qualification notice to avoid mis-procurement charge under rule 50, TDAP was of the considered opinion that since no procurement is being made and no financial assistance is being given by TDAP as clearly indicated in the EoI, the question of mis-procurement does not arise.
Disagreeing with TDAP's clarification, TIP said even if procuring agency is not funding the procurement, it is procurement under PPR - 2004. TIP gave the example of Expo 2010, Shanghai, China where the contractor is funding 41 percent of the project cost from the earnings he would make.
If the Expo 2010 - Shanghai, China was more profitable, contractor may not have charged any amount from TDAP, and might have even paid to TDAP. Brushing aside the TDAP explanation, TIP said the understanding of TDAP that PPR - 2004 do not apply to selection of event manager for Expo YEOSU 2012, Korea is, therefore, wrong. Unless it is re-advertised as per rules, "this procurement will amount to mis-procurement under PPR - 50."
How could TDAP process award of a contract without following the rules," it said. TIP further said that TDAP has failed to reply its letter of October 3, 2009 on Expo Shanghai, China which pertained to the allegation that the contractor has claimed additional cost of USD 2.2 million TIP would like to know the status and veracity of this allegation.
TIP has again asked that copies of the evaluation report and contract agreement be supplied to conform that the procurement was made according to PPRA rules. It has also challenged that TDAP clarifications are against the PPR - 2004. The following information is required to avoid mis-procurement charge under rule 50, and further re-invite pre-qualification notices under the prescribed procedure.
The information required relate to: scope of work, number of seminars and workshops, cities of seminars and workshops, time period of contract, and who will bear the cost of travel, lodging and boarding of participants, how many participants are desired per seminar/workshop.
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