The government needs to amend Public Procurement Regulatory Authority (PPRA) rules immediately and make them business friendly as these rules are creating serious hurdles in starting of any new project. This was stated by Khawaja Mohammad Asif, former federal minister and the member National Assembly (MNA), while taking part in a debate at Public Accounts Committee (PAC), which met here under the chairmanship of Shehbaz Sharif, Leader of the Opposition in the National Assembly (NA).
The PAC meeting was held to review and discuss audit paras of Civil Aviation Authority (CAA) in connection with massive irregularities pointed out by Auditor General of Pakistan in the construction of New Islamabad International Airport, Lahore Airport and Benazir Income Support Programme.
The chairman PAC while taking up the issue of irregular payment due to unauthorised change to Joint Venture (JV) in civil works of New Benazir International Airport, worth Rs 7.8 billion, wherein CAA board relaxed the contractors of PPRA rules, said that only government to government contracts can be exempted of certain PPRA rules and not the contract of any private party.
He said that no PAC member has accused the CAA of corruption in allocating contracts to the party but they are asking under which authority the CAA allowed violations of PPRA rules.
Briefing the panel, the secretary CAA said that all the irregularities pointed out by AGP and Departmental Accounts Committee (DAC) of the division were sent to the Federal Investigating Agency (FIA) for probe as per the directives of the PAC.
When the committee asked Director General (DG) FIA Bashir Memon about the matter, he said that the agency has found nothing wrong with the contract and it was as per Pakistan Engineering Council set procedures.
Briefing the committee, the managing director PPRA said that the authority has started a process to amend and update certain rules and regulations. He added that draft of the amendments has been placed on the website of the authority for stakeholders' comments.
The committee snubbed the officials of the PPRA for their failure to properly respond to the questions raised by the committee members in connection with delay made by the contractors in construction of New Islamabad Airport.
The chairman committee said that two days have been wasted due to the incompetence of the FIA, PPRA and CAA officials, as they remained unable to give proper answers to the questions as why these irregularities occurred in the contracts and why they allowed serious violations of the PPRA rules.
Briefing on another irregularity in the construction of New Islamabad Airport regarding engineer's invalid decision involving Rs 3.552 billion and overpayment of Rs 1.556 billion, the AGP said that the FIA has recommended the CAA authorities to register an FIR against the officials involved in the irregularity but as yet no action has been taken.
The secretary CAA said those involved in the scam were demoted as a punishment. On this the committee members asked the secretary why they were not removed from service and arrested as they caused billions of rupees losses to national kitty.
Member committee Munaza Hassan said that strangely the DG FIA is trying to defend the people involved in the irregularity.
The committee directed the officials concerned to come fully prepared in the next meeting with precise presentation on the audit paras involving civil works of New Benazir Bhutto International Airport signed between CAA and Joint Venture of M/s Lagan-Husnain, (comprising Lagan Construction Limited and Husnain Cotex Ltd with Lagan Construction Ltd as lead partner of Rs 11.825 billion).