K-IV water supply scheme: TI Pakistan terms act of awarding project's contract to FWO 'illegal'

Transparency International Pakistan has termed the Sindh government's act of awarding `unsolicited' contract of Rs 25.5 billion K-IV water supply project to Frontier Works Organisation (FWO) 'illegal' and `in violation of Public Procurement Regulatory Authority (PPRA) rules.
The Transparency International Pakistan in a letter sent to Sindh Chief Minister Sindh Syed Qaim Ali Shah stated: "According to SPPRA Act 2010 and SPPRA Rules-2011, the K-V1 Project has to be tendered and only the experienced bidders shall be awarded the contract at the lowest competitive cost. " Sindh government, as per SPPRA rules, could award unsolicited contracts in an 'emergency or unavoidable circumstances' means natural calamities, disasters, accidents, war and breakdown of operational equipment, plant, machinery or engineering infrastructure , which may give rise to abnormal situation requiring SPPRA's prompt and immediate action to limit and avoid damages.
"M/s FWO in most of the cases sublets major part of contracts, is also not allowed to award any contract without following PPRA rules" the letter noted. Quoting the Islamabad High Court's judgement, the Transparency International Pakistan in its letter sated:" The award of unsolicited contracts under prime minister's directives to the armed forces contracting company - National Logistics Cell- worth over Rs 5 billion were also declared illegal.
"The court has also declared that assigning of work to NLC is glaring example of discrimination, favouritism, nepotism, ulterior motives and stinking approach to advance personal agenda," the letter said and added: " The assigning of work to NLC was declared to be cancelled with the direction that NLC shall return all amount received vide cheque Nos.B836966, B850167 and 13853844 for execution of projects within one week of the receipt of the order".
The Transparency International Pakistan's letter also pointed out that the court through its judgement in the case has also ordered, "the procuring agency - Pak PWD - to initiate the procedure afresh strictly in accordance with the PPRA Ordinance, 2002 and PPRA Rules, 2004 and by following the dictums laid down on the point of Public Procurement by the Honourable Supreme Court of Pakistan and may complete its process within one month.
"The court also directed that the copies of its judgement be sent to chairman NAB for initiating proceedings against all those persons involved in big scam, including the then Prime Minister, his Principal Secretary, Secretary Ministry of Housing & Works and all the official of Pak PWD, who abetted, aided and executed the illegal orders issued on behalf of the then Prime Minister and officials of NLC, who remained involved in obtaining assigning of work of development projects," the letter stated.
The Transparency International Pakistan also mentioned the details of RPP case in HRC 7734-G/09 on March 30, 2012 in which the Supreme Court of Pakistan declared all RPP unsolicited contracts as illegal and void, and NAB was directed to file references against all responsible. The Transparency International Pakistan through its letter has requested the CM to go through the above cited judgements of the Islamabad High Court and Supreme Court of Pakistan as a result of which two former prime ministers and three ministers are facing NAB references for committing corruption charges.