Auction for 3G licenses: PTA annulled consultants' contract on NAB's objections, National Assembly body told

Pakistan Telecommunication Authority (PTA) has cancelled contract with foreign consultants following objections by the National Accountability Bureau (NAB) that caused delay in auction of 3G spectrums. This was revealed by PTA officials in a meeting of the National Assembly's Standing Committee on Information Technology, which met here on Monday with Barjees Tahir in the chair.
The committee declared the PTA responsible for the violation of rules and regulations in the auction of the 3G licenses. The committee was informed that the after hue and cry and NAB reference against the appointment of foreign consultants, the PTA has cancelled the deal with consultants. After severe criticism, the consultants were not happy to carry on work with the PTA. After suspension of contract with the foreign consultants, the auction of 3G license again in doldrums and delayed for unspecified time, which is great loss to the national exchequer.
Chairman of the Committee Barjees Tahir has said that since day one they had raised objections that PTA was violating rules in appointment of foreign consultants for auction of 3G license. The foreign consultants were hired for Rs 50 million and a cheque of Rs 10 million had already been issued to them, but they could not cash it. He claimed that PTA chairman was responsible for the wrongdoing and if the consultants got the cheque cashed it would be of great loss to the government.
He also regretted that the PTA Board of Director consists of only three members ie, Chairman and two its members, but they never held meeting over the issue. The committee said that they warned PTA from the very first day that auction process of 3G was not transparent that has been proved true today. MNA Muhammad Shafqat Hayat Khan said that for the third time, 3G auction has been delayed and the PTA has earned bad name for the country in this regard. He said that it tarnished the country's image internationally, as in future no one would be ready to come for assistance in the auction process.
Secretary Information Technology Aamir Tariq Zaman Khan told the committee that following the objections by the NAB, the PTA cancelled the contracts awarded to three consultants hired previously. He informed the committee that the decision to hire 3G consultancies had been made by the PTA chairman. The members of the committee replied that an assessment to be conducted to determine the extent of violation of rules by the PTA in auctioning 3G licenses. They also said that all payments made to any 3G consultants by the PTA would have to be recovered from the authority's chairman.
However, Director General PTA Sajjad Latif Awan told the committee that PTA Chairman hired the foreign consultants on the instruction of Auction Supervisory Committee and rules were properly followed. He accepted that the cheque was issued to consultant, which was returned. After complaints, he said the consultants did not want to continue the work because it would destroy their reputation internationally.
Member Technical PTA Dr Khawar said that Chairman PTA had done all this in his personal capacity therefore all the responsibility lies upon his shoulder. Officials said that not even a single penny has been paid to the consultants. The committee was annoyed by the role of PTA in elimination of grey trafficking. Tahir said that the PTA seemed reluctant to take action against influential people. He said legal department of PTA was not performing well on legal grounds and failed to defend its cases on grey trafficking, therefore court issues stay orders on grey trafficking cases.
Secretary IT Amir Tariq Zaman admitted that PTA initiatives to curb the grey trafficking were not sufficient and the authority could only monitor 13 percent of the traffic. Anusha Rehman said the grey traffickers were sitting in the power corridors and government departments were facilitating grey trafficking in the country. She said that if Ministry of Information Technology initiate its work diligently, the country would not need to go to IMF and other donor agencies.
During the meeting, the committee expressed its surprise, saying that how a government department ie Competition Commission of Pakistan (CCP) could oppose another government entity, PTA, while the PTA was right in its stance. The panel expressed it displeasure over Universal Service Fund (USF), as the fund is awarding contracts to defaulter companies, which have liabilities of more than Rs 25 billion. The committee asked the USF officials to give list of those companies who have been awarded contracts.
Barjees Tahir said that IT ministry and PTA have failed to run their business smoothly, therefore, the Prime Minister should decide about it. Anusha Rehman raised the issue of new initiative by IT ministry to block web. However, Member legal Muhammad Kamran said that there was nothing like this under the consideration of the ministry.