Directorate of Immigration & Passports, Ministry of Interior, has reportedly caused loss of millions of rupees to the national exchequer in procurement of laminate paper used for passports in violation of PPRA rules. The Project Director, who is said to be a close relative of Chairman Public Accounts Committee (PAC), has allegedly favoured one specific company in violation of PPRA rules.
Official documents available with Business Recorder reveal that the Passport Office had already issued a tender and expression of interest on the instructions of Ministry of Interior which specified that PPRA Rules must not be violated. The Project Director, in a letter to Ministry of Interior with the approval of Director General Immigration and Passports (DGI&P) dated 27 September 2012, a copy of which is available with this scribe, requested exemption from PPRA Rules causing huge financial loss to the national exchequer.
The reason cited is the impossibility of completing the process as required by PPRA in three and a half months given the last date of submission for prequalification request was 2 October 2012. In the letter, the project director stated that 15% of total quantity of 10,000 million laminate patches had already been procured from M/s. OpSec, New York USA as permitted under clause (IV) of PPRA Rule 42(c). He argued in favour of a fresh tender to be floated for the purchase of laminate patches.
The Ministry of Interior conveyed the requisite approval vide.No 17/I9/2007/Estt/IP(P&C) dated 20.07.2012. DG I&P in the light of this approval placed a supply order for one million laminate patches to M/s. Opsec New York, USA, while the placement of remaining 0.5 million laminate patches is in progress. The tender has been floated for pre-qualification of the firms for supply of laminate patches in "The Economist International" and local newspapers.
The Project Director in his letter further stated that M/s OpSec New York USA has sent an email message through which the vendor has informed that OpSec contract commitment to supply 10 million laminate patches has been successfully fulfilled. Subsequent to that they are successfully completing the current order PO 13 which is not in the contract.
M/s. OpSec expressed their willingness to participate in the newly floated tender for supply of laminate, however they said that there would be an interlude between the contracts that causes great concern because that is the time that supplies run out.
According to him, the company further stated that it is very important to them to have a contract in place for secure supply of laminate by OpSec and passport issuance by DG I&P. Since the product is unique for security reasons therefore, they cannot hold stocks unless contracted. There is a long lead time for procurement of necessary raw material and manufacture. Unless a contract is in place, it would be quite difficult for them to procure raw material in advance.
The letter written on September 27, 2012 further stated that the existing stock of laminate in hand will last for 22 days while the in-process consignment of 700,000 laminate patches will last for 50-60 days. Thereafter, the Passport Office can place an order for 500,000 laminate patches which will last for 30 days, meaning thereby, keeping in view the anticipated consignments, the laminate will last for 100-110 days (3-31/2 months) approximately.
The Project Director said in the letter that it seems quite difficult to finalise the whole tendering process within a span of 31/2 months as the last date for submission of pre-qualification request is October 02, 2012, while the following steps are involved in the process: (i) finalisation of pre-qualified firms;(ii) request for submission of technical & financial proposals to the pre-qualified firms;(iii) demos/presentations;(iv) short listing of firms;(v) testing of security features from international laboratories;(vi) finalisation of successful bidders;(v) approval of contract from Ministry of Interior and vetting from Law Division and ;(vi) finally placement of LoI to the successful bidder. According to clause 1.1.13 of the existing contract, the contract is renewable at the option of the DGIP for an additional three-year period or till the supply of laminate for another five million passports on the same terms and conditions. The relevant clause is re-produced below.
"Term" means the period of five years starting from the effective date or till the completion of supply of Laminate for Ten (10) million Pakistani passports, whichever is earlier. The Contract shall come into effect on the effective date and shall remain in full force and effect till the completion of the term. Upon expiry of the term, the same shall be renewable at the option of DG I & P for an additional 3-year period or till supply of laminate for another 5,000,000 (five million) passports on the same terms and conditions. The term may further be extended by mutual consent of the parties."
The sources said companies are willing to supply the lamination below 0.30 cents/laminate where as the Project Director is insisting on buying at 0.38 cents. Only the Prime Minister is allowed to give such exemptions and not any ministry in the national interest.
The sources said, Project Director has tried to build up a case based on unfounded facts that companies will not be able to supply the laminate due to various reasons which is far from reality. "We have also applied to supply lamination and have promised delivery within the timeframe that OpSec New York, USA, will provide the delivery but tendering process is being delayed due to bad intentions," said one of the stakeholders. The project director could not be reached for his comments.
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