CAA ‘commits’ irregularity while awarding Rs4,503m project

ISLAMABAD - The sub committee of the Public Accounts Committee (PAC) on Tuesday was informed that the Civil Aviation Authorities (CAA) had irregularly awarded contractor Rs 4,503 million project on negotiation basis. The audit officials told the committee headed by Pakistan People’s Party (PPP) senior leader Syed Naveed Qamar that the contract was awarded in violation of PPRA Rules 2004. Clarifying the rules for awarding the contract, the audit officials said that as per Rule 40 there shall be no negotiations with the bidder having submitted the lowest evaluated bid or with any other bidder provided that the extent of negotiation permissible shall be subject to the regulations issued by the authority. The audit officials further revealed that during the scrutiny of the record relating to New Islamabad International Airport Project, Islamabad relating to the work “Special Baggage Handling System for Passenger Terminal Building, the audit officials noted that tenders were advertised on two envelope systems on 23rd April 2013 to be received up to 25th May, 2013. As per the documents of the audit officials only two bidders submitted technical and financial bids and the lowest bidder Thales-Selex-GE JV submitted bid of Rs 3,916.8 million with FC portion of US dollar 34.4 million. On the matter the CAA officials responded that the bidder resubmitted the revised format of bid bringing FC to 49.96% and the same information was forwarded to Finance Section on 7th June, 2016. The CAA officials further said that contractor applied for registration from PEC after award of contract. However, the convener of the committee Syed Naveed Qamar did not accept the reply from the CAA officials and directed them to probe the matter and furnish complete report to the committee within 30 days. 

 

The writer is member of staff and can be reached at @8mansoor_ali

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