Transparency International Pakistan has forwarded a complaint to the Secretary, Local government, the Government of Sindh with a request to examine the allegation of collusion between the department and bidder which may cause loss of Rs 3.68 billion by manipulation in procurement of six billion rupees project of 184 fire tenders for Sindh except Karachi.
Chairman, TI-Pakistan, Sohail Sarfaraz in a letter sent to Secretary Local Government on July 7 has brought to his notice the complaint of manipulation/collusion between the department and the bidder.
The complainant has made following allegations:
1. That the tender was invited in April 2014 for the procurement of 184 fire tender, which is a collusive bidding, and the contract is pre-decided for a particular firm, due to the fact that it is restricted to only manufacturers in Sindh, who are registered in Pakistan and shall submit following documents:
That the firm is original equipment manufacturer having plant/factory in Karachi/Sindh.
1- National tax certificate, 2- GST certificate, 3- body building certificate, 4- professional tax certificate, 5- Registration with EDB.
2. That the estimated cost of each fire tender approved in 2008/9 the PC-I was only Rs 6 million each, (Rs 324 million for 54 fire tenders) , and in 2014, the LG departmental estimated cost of each fire tender is Rs 32.15 million. US dollar was Rs 62 in 2008, and is Rs 99 in 2014. Though FC increase is only 1-1/2 times, ie 50% in last 6 years, Sindh Local Government has increased the cost by 5-1/3times, ie 535%.
3. That according to the PC-I of 2008, with market increase of last six years, the cost of each fire tender shall not be more than 12 million, and the Sindh Government is paying 20 million extra on each, thereby causing a loss of Rs 3.68 billion, in a project of Rs 6.0 billion.
4. That the tender was invited on April 18, 2014 and was to be opened on May 6, 2014, but the SPPRA did not clear the Tender, and withheld it on its website.
5. That the tenders were cancelled by the local govt.
6. That the evaluation criteria are in violation of the SPPRA bidding document, as there is no provision of such criteria.
7. That according to following information in the Tender Documents, all bids are to be opened at the same time on date of bid submission, and financial prices are to be announced publicly.
In case the complaint is determined to be correct, on restriction to International manufacturers, as well as manufacturers from Pakistan other than Sindh, and the exorbitant prices of Rs 32.15 million per fire tender, against 2008 prices of Rs 6 million, the tenders shall be prepared on the basis of the SPPRA Rules, and evaluation criteria shall be only based on responsive to specifications or non responsive, while evaluating the tenders, TI-Pakistan said.
The copies of the letter have been forwarded for information with the request to take action under their mandate to: Secretary to Prime Minister, Islamabad, Chief Secretary, Government of Sindh, Karachi, Chairman, NAB, Islamabad, DG. NAB, Sindh, Karachi, Addl. Chief Secretary (Dev) P&D & Special Initiatives Department, Karachi, Registrar, Sindh High Court, Karachi, and Managing Director, SPPRA, Karachi.
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