Pakistan Secretariat, a complex of key Federal Ministries, except Defence and Foreign Affairs, is in the grip of corruption scandals. Immediately after the release of Transparency International (TI) report, Prime Minister Yousaf Raza Gilani ordered an inquiry, under the chairmanship of Finance Minister Shaukat Tarin, into Pakistan's poor performance in the corruption index.
The most visible corruption has been through blatant violations of public procurement rules. This is facilitated because the element of conflict of interests is disregarded and most of the Federal Secretaries are on the Board of Public Procurement Regulatory Authority (PPRA). Transparency International Pakistan (TIP) in hundreds of communications throughout the year had pointed out violations of procurement rules.
However, most of the time their concerns were not taken seriously by the decision makers. Several allegations of corruption had been made against the Ministry of Water and Power and its affiliates, namely Water and Power Development Authority (Wapda), Pakistan Electric Power Company (Pepco), Private Power and Infrastructure Board (PPIB), Alternative Energy Development Board (AEDB) and National Engineering Services Pakistan (Nespak). These ranged from appointments based on nepotism and bribes and awarding of contracts to favourites.
Minister for Water and Power Pervez Ashraf has been repeatedly accused of changing tender terms after award, which compromised the entire process, especially with reference to the highly controversial rental power plants. Pepco and PPIB are two organisations, which signed contract with the sponsors of RPPs.
In addition to electronic media, Pakistan Muslim League (Q) parliamentary leader in the National Assembly, Faisal Saleh Hayat, publicly accused Pervez Ashraf. On September 26, 2009, Pervez Ashraf served legal notice to Faisal for making false statements on RPPs, seeking an apology within 14 days, or else face legal proceedings. Almost two months later no case has been filed by the Minister against Hayat.
Wapda is also almost routinely accused of draining public money through following flawed procurement processes. AEDB is already investigating several cases of corruption, fraud and financial mismanagement, but nothing has been finalised so far despite passage of several months of inquiries.
Commerce Ministry, its attached departments like Trading Corporation of Pakistan (TCP), National Tariff Commission, Trade Development Authority of Pakistan (TDAP), and insurance companies have also been accused by TIP of irregularities that have cost the national exchequer large sums of money.
Numerous cases implicating senior officials of Commerce Ministry have been revealed over the past year and a half on a range of suspect activities including issuance of import permission for arms, procurement, import and export of commodities. Corruption in Pakistan Steel reached unprecedented levels which led finally to the ouster of the man implicated in the scam.
However, it is not clear whether the inquiry report, requested by the Prime Minister on pinning the responsibility of corruption has been completed, or is still going on. Irregularities in procurement of equipment, for example drilling pipes, drilling bits for exploration activities, from local as well as foreign companies are also evident in Oil and Gas Development Company Limited (OGDC).
Sources allege that OGDC top management indulged in favouritism in the award of contract to renovate OGDC main building in Islamabad. OGDC allocates Rs 10 million per annum for renovation but the contract is given without bidding to the contractor on the approval of Managing Director (MD) of OGDC, which is against rules of awarding contract. According to Auditor General of Pakistan's recent report, OGDC faced a loss of Rs 169.67 million in contract of procurements during financial year 2008-09.
The OGDC administration has also been reported to be involved in allocating natural gas and LPG quotas on ad hoc basis, without approval of competent forum, like ECC, on political basis. After Naveed Qamar assumed the charge of Minister, OGDC MD Zahid Hussain submitted his resignation to Petroleum Ministry due to pressure from Naveed Qamar, sources said.
In Pakistan State Oil (PSO), the change in the Board of Directors is a routine matter, which every new government, even a caretaker government, undertakes. However, due to pressure from Naveed Qamar, the Chairman of the Board, Yasin Malik, resigned. According to sources, a change in the board of directors is on the cards.
Sources said that the MDs of other organisations, like PPL, had expressed their inability to work under pressure. All possible changes are part of the plan to make political appointments in organisations like PSO and OGDC. AGP in its recent report revealed that PSO faced a loss of Rs 3.201 million due to short delivery of POL products during last fiscal year 2008-09.
Maula Bux Khatian, a Grade 21 officer of Sindh government, has challenged the appointment of the current Ogra Chairman Tauqir Sadiq in the Sindh High Court. SHC on October 19 put the Federal Government on notice regarding the matter. The petitioner had applied for the post, and has alleged, that Sadiq's law degree is a fake. Sadiq is said to be the brother-in-law of Senator Jahangir Badr and had previously worked as Ogra Registrar and later at the Taxila Heavy Machinery Complex.