A parliamentary panel Thursday directed the National Highways Authority (NHA) to award contracts to Frontier Works Organisation (FWO) by following PPRA rules. While examining the audit reports of Ministry of Communication for the year 2002-03, Committee Convenor Syed Naveed Qamar observed that previous regimes had awarded contracts to FWO without calling tender by invoking the emergency clause-a provision in PPRA rules. He said that tender should be invited in each contract in future.
The audit observed that NHA code provides that the work should be awarded after calling transparent and open tenders to achieve most economical and competitive rates. Government of Pakistan, Ministry of Defence Rawalpindi dated December 1985 provides that no preferential treatment may be given to M/s FWO and such work may be awarded on competitive basis under the normal rules.
National Highways Authority awarded a work for additional carriageway Rahim Yar Khan-Tarinda Muhammad Pannah Project worth Rs 3.2 billion to M/s FWO without calling open and transparent tenders.
Audit was of the view that awarding of work to FWO without tendering should be referred to Finance for policy decision. The audit rejected the reply of management of NHA. The NHA officials contended that work was awarded to FWO on the basis of emergency and serious traffic blockage.
Audit further observed that FWO is normally awarded work under the cover of hard area and the law and order situation. In the instant case no such condition existed.
In another case, NHA awarded a contract for Lahore Bund Road Project to M/s FWO without calling open and transparent tenders. This resulted in an irregular award of work amounting to Rs 551.362 million.
The audit contended that the award of work is irregular. The NHA informed that in future all contracts will be awarded on competitive basis.