Transparency International Pakistan (TIP) would declare as "mis-procurement" in case Pakistan International Airlines goes ahead with its US $2 billion deal at list price with Airbus and Boeing, bypassing the Public Procurement Rules (PPR) 2004, for the purchase of 27 new single-aisle aircraft within the next few weeks.
TIP Chairman, Syed Adil Gilani, in a letter sent to Captain Ajaz Haroon, Managing Director, PIA on July 8 requested him to confirm within two weeks whether he had meetings with Airbus and Boeing representatives during the 48th International Paris Air Show, June 15 to 21 at Le Bourget exhibition center and had revealed details of the prospective purchase order to Flight Daily News (published from Paris).
He has reminded that the Government of Pakistan has made it mandatory under Rule No 8 PPR 2004 that PIA shall plan all procurement annually, and under Rule No 4 they are to ensure that the procurements are conducted in a fair and transparent manner, the object of procurement brings value for money to the agency and the procurement process is efficient and economical.
Rule No 8: Procurement planning: Within one year of commencement of these rules all procuring agencies shall devise a mechanism for planning in detail for all proposed procurements with the object of realistically determining the requirements of the procuring agency, within its available resources, delivery time or completion date and benefits that are likely to accrue to the procuring agency in future.
Rule No 4: Principles of procurements: Procuring agencies, while engaging in procurements, shall ensure that the procurements are conducted in a fair and transparent manner, the object of procurement brings value for money to the agency and the procurement process is efficient and economical. The procedure of open competitive bidding is prescribed in Rule No 36, which comprises four methods, but in all these methods the principle of award is that the lowest evaluated bid shall be accepted.
These procurements if the reports are correct "will be declared as mis-procurement under Rule No 50," it has been pointed out in the letter. Copy of the letter has also been forwarded to the Chairman of the Public Accounts Committee, National Assembly, Islamabad.
Syed Adil Gilani has prominently displayed in his letter a quote from the address of Quaid-i-Azam Mohammad Ali Jinnah to the Constituent Assembly of Pakistan on August 11, 1947 which reads: "One of the biggest curses from which India is suffering, I do not say that other countries are free from it, but I think our condition is much worse - is bribery and corruption.
That really is a poison. We must put that down with an iron hand and I hope that you will take adequate measures as soon as it is possible for this assembly to do so." Pakistan International Airlines and Transparency International Pakistan had signed a Memorandum of Understanding (MoU) in 2005 and TIP had prepared procurement manual for PIA, which is mandatory to be used by the national carrier.
In the procurement manual, the procedures have been fully defined, and SBDs are available for all types of tenders. TIP on April 2, 2009 had also written a letter to PIA regarding: "violation of PPR 2004 by PIA tender for construction of hanger at Nawabshah airport."
Syed Adil Gilani had informed Captain Ajaz Haroon that the two tender notices published in an English language newspaper on April 1, 2009 for hanger works at Nawabshah airport and construction of residential and office buildings along with allied facilities of Shaheed Benazir Bhutto Flight Academy at Nawabshah airport "are in violation of PPRA Rules."
In both tenders, PIA was required to prepare bidding documents and issue to bidders which was not complied by PIA in these cases. According to Rule No 23, PIA shall formulate precise and unambiguous bidding documents also that shall be made available to the bidders immediately after the publication of invitation to the bid. TIP is still awaiting satisfactory reply to the objections raised in its letter.