4 bn can be saved in tenders by armed forces, other govt deptts
Monday, June 21, 2010
Transparency says enforcement of public procurement rules 2004 can do wonders
By Ansar Abbasi
ISLAMABAD: The Transparency International has said Pakistan can save $4 billion annually and get rid of the IMF by curbing corruption merely in official procurements.
In a press release issued by the Transparency International Pakistan, its Chairman Syed Adil Gilani said at this crucial time of financial crunch faced by Pakistan, the government can save $4 billion only by implementing the Public Procurement Rules 2004 in the federal government, armed forces and all the four provinces and corporations/ authorities/ trusts.
He said the federal and provincial authorities, including the armed forces, were estimated to spend Rs 1,200 billion on procurement in the next fiscal year i.e. 2010-2011. “Pakistan can save at least 30 per cent, i.e. Rs 360 billion (over $4 billion) which is the direct cost in Pakistan of corruption in procurement only,” Gilani is quoted to have said, adding this astonishing figure is almost identical to the auditor general of Pakistan’s reported corruption in the fiscal year 2008 of Rs 323 billion.
He asked why no serious efforts were made to save this pilferage, and why every government functionary was begging for foreign aid, which is in fact not grant but loan, and has to be repaid by the future generations of Pakistan.
He said across-the-board application of the Public Procurement Rules 2004 had been strongly emphasised by the judiciary. In its landmark order handed down by the Supreme Court on April 28, 2010 in case of disputed award of the multi-billion dollar LNG contract to ***-Suez, the SC announced: “Here we may observe that it is duty of the court to ensure that the Public Procurement Regulatory Authority Ordinance 2002, read with the Public Procurement Rules 2004, are adhered strictly to exhibit transparency.”
He added that the most corrupt sector declared by the Transparency International Pakistan was in tendering, which ate away at least 40 per cent of Pakistan’s development budget, which had been confirmed from the recent results of transparent tendering for the transportation of sugar in the Trading Corporation of Pakistan. The TCP, he said, saved at least Rs 49.3 million by implementing the Public Procurement Rules 2004, which is 40 per cent lower than the cost of the same work awarded last year.
The efforts of manipulation in tendering are eliminated under the Public Procurement Rules by self-accountability and transparency. In order to stop the manipulations and collusion between bidders and client, he said, the following transparency clauses were included in the Public Procurement Rules 2004:
1. Detailed Evaluation Criteria for award of work, including marking etc has to be set up prior to issue of tender and shall be included in the tender documents for information of bidders.
2. Evaluation Report before award of contract shall be given to all the bidders (for 15 days) for their objections and signing of “Integrity Pact” accepting to pay ten times loss to GoP as fine if corruption is proved.
3. After the award of contract of services/supply/works only to the lowest evaluated responsive bidder, all the documents related to the evaluation of the bid and award of contract, including quoted rates, be made public.
Babar Awan’s alleged corruption: In a separate e-mail note sent from the United States to The News, Gilani said the alleged act of misuse of exchequer money by Minister of Law for chartering an official plane to hand out funds to lawyers in different cities of the Punjab is liable under the National Accountability Ordinance 1999, Article 9(iii)(vi) and (x).
These sections of the Accountability Law provides for criminal proceedings against a public office holder if he dishonestly or fraudulently misappropriates or otherwise converts for his own use, or for the use of any other person, any property entrusted to him, or under his control, or willfully allows any other person to do so; or if he misuses his authority so as to gain any benefit or favour for himself or any other person, or renders or attempts to render or willfully fails to exercise his authority to prevent the grant, or rendition of any undue benefit or favour which he could have prevented by exercising his authority; and if he commits the offence of criminal breach of trust as defined in Section 405 of the Pakistan Penal Code, 1860 (Act XLV of 1860) with regard to any property, including money or valuable security entrusted to him by members of the public at large.
$4 bn can be saved in tenders by armed forces, other govt deptts
$4 billion can be saved in tenders by armed forces, other govt deptts
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