A sub-committee of National Assembly's Public Accounts Committee (PAC) on Wednesday rejected the internal inquiry report of Water and Power Development Authority (Wapda) for commissioning two companies for floating Wapda bearer bonds without competitive bidding.
The committee directed the authorities concerned to initiate a fresh inquiry under the supervision of secretary Water and Power Shahid Rafi and submit it to the committee within four week. Reviewing the audit brief of special study report on Wapda bonds for 1992-93, audit observed that National Development Finance Corporation (NDFC) appointed consultants for the first issue of Wapda bearer bonds without any agreement regarding payment of consultancy fees.
The same procedure was applied in issuance of second Wapda bonds. For the third series of Wapda bonds, FCDC (Pvt) Limited was appointed as consultants. The FCDC was formed by taking three directors from NDFC and three for Wapda. Again no terms and conditions were negotiated and competitive bidding was ignored. The Wapda cancelled the contract with FCDC as consultant on pointing out by audit department after floating three bonds. But services of FCDC remained continued for 18 months without any contract or agreement between Wapda and FCDC.
While justifying their position, Wapda officials claimed that the services of FCDC was hired in arranging loan and other special cases in which Wapda had no expertise. PAC pointed out that Wapda spent Rs 4.5 million in commission for floating bearer bonds without calling competitive bidding. In addition, the capital of FCDC was reached at Rs 862 million for providing consultancy to Wapda without existence of an agreement between them. Secretary Water and Power also endorsed the objections of PAC and assured to conduct a fresh inquiry into it, which will be presented to the committee within four weeks. The committee meeting was chaired by Zahid Hamid.