Transparency International Pakistan (TIP) has accused Trading Corporation of Pakistan (TCP) of violating Public Procurement Rules, 2004 in hiring freight services, official sources told Business Recorder.
TIP Chairman Adil Gilani has written a strongly worded letter to TCP Chairman Saeed Khan alleging that it had ignored its earlier dispatches, and pointed out its failure to follow government prescribed rules.
The TI chief referred to its earlier letters about non-transparent tendering by TCP in gross violation of Public Procurement Rules 2004, on November 17, 2008, November, 20 2008, January 21 2009 and January 31, 2009. It said that the pre-qualification of logistic companies on TCP panel, advertised on February 22, 2009 in a Karachi based newspaper, was the latest manipulation by TCP, "in violation of Public Procurement Rules 2004". According to Rule No 15 and 16 quoted below, TCP has to prepare documents and issue to applicants:
PRE-QUALIFICATION OF SUPPLIERS AND CONTRACTORS:A procuring agency prior to the floating of tenders, invitation to proposals or offers in procurement proceedings, may engage in pro qualification of bidders in case services civil works, turnkey projects and in case of procurement of expensive and technically complex equipment to ensure that only technically and financially capable firms having adequate managerial capability are invited to submit bids. Such pre-qualification shall solely be based upon the ability of the interested parties to perform that particular work satisfactorily.
A PROCURING AGENCY WHILE ENGAGING IN PRE-QUALIFICATION MAY TAKE INTO CONSIDERATION THE FOLLOWING FACTORS, NAMELY:
a) relevant experience and past performance; (b) capabilities with respect to personnel, equipment, and plant; (c) financial position; (d) appropriate managerial capability; and (e) any other factor that a procuring agency may deem relevant, not inconsistent with these rules.
PRE-QUALIFICATION PROCESS: The procuring agency engaging in pre-qualification shall announce, in the pre-qualification documents, all information required for pre-qualification including instructions for preparation and submission of the pre-qualification documents, evaluation criteria, list of documentary evidence required by suppliers or contractors to demonstrate their respective qualifications and any other information that the procuring agency deems necessary for prequalification. The procuring agency shall provide a set of pre-qualification documents to any supplier or contractor, on request and subject to payment of price, if any.
TCP VIOLATIONS TO THE ABOVE REQUIREMENTS ARE:
1. TCP is not providing set of prequalification documents.
2. TCP is not declaring the evaluation criteria and sub criteria, based on which firms will be approved and disapproved.
3. TCP is restricting firms to only those who have working experience of last five years.
4. TCP is restricting firms who were ever blacklisted any where, and are now free to bid.
5. TCP is restricting this procurement only to Pakistani firms, whereas only foreign firms can transport, as none of the Pakistani firm has any bulk or container vessel.
6. Already pre-qualified firms are not being re-evaluated, though they may not fulfil the evaluation criteria, as the financial capacity of the firms are most important criteria.
According to the letter, Transparency International Pakistan has recommended that detailed set of "pre-qualification documents" according to Rules 15 and 16, be prepared, and the prequalification notice be re-advertised, informing interested firms to collect the prequalification document.
On the sugar tender of 50,000 tons, TCP clarification reported in Business Recorder of 21 February 2009, revealed that the 15 days time allowed to bidders may be considered manipulation in favour of a specific bidder, from UAE, the TI added.
According to the organisation, delivery is called for "delivery to TCP''s godown within 15 days of Letter of Credit (L/C)". It takes about 4-6 days to observe all formalities at port of shipment and at the Karachi port to complete documentation of port authority and custom duties and charges and to move the sugar to TCP''s godowns.
For all practical reasons the period of shipment is narrowed down to within just 8-10 days. For the Chairman to say shipment can be from Dubai, India, Saudi Arabia, Thailand and Kuwait, is incorrect. India is not an exporter this season and is actually importing sugar. Saudi Arabia and Kuwait are also not exporters of sugar. Nearby countries are Dubai and Thailand.
The delivery period further narrows it down to just Dubai as it would take a minimum of 2 weeks voyage time from Thailand therefore Thailand cannot meet the tender requirement. This clearly proves the tender requirement is prepared to suit only one sugar producing country ie UAE. The Rules are, Specifications shall allow the widest possible competition and shall not favour any single contractor or supplier nor put others at a disadvantage.
DISCRIMINATORY AND DIFFICULT CONDITIONS: Save as otherwise provided, no procuring agency shall introduce any condition, which discriminates between bidders or that is considered to be met with difficulty. In ascertaining the discriminatory or difficult nature of any condition reference shall be made to the ordinary practices of that trade, manufacturing, construction business or service to which that particular procurement is related.
MIS-PROCUREMENT: Any unauthorised breach of these rules shall amount to mis-procurement. In its concluding remarks TIP stated that TCP is violating the following PPRA Rules, and under Rule No 50 both above referred procurements becomes mis-procurement.