TI-Pakistan takes case of buying armoured vehicles to NAB
June 30, 2014
IQBAL MIRZA
Despite repeated reminders, Transparency International Pakistan's complaint against Inspector General of Police Sindh, on the allegation of procurement of 20 armored vehicles at the cost of Rs1.24 billion, from Serbia without inviting tenders, continues to lie in cold storage. This issue was taken up by TI-Pakistan with IG Police Sindh, and also reported consistently to the Chief Minister, Sindh, Chief Secretary, government of Sindh, Karachi, NAB, FIA, Sindh High Court, and Sindh Public Procurement Regulatory Authority (SPPRA).
Having failed to get any response, Chairman, TI-Pakistan, Sohail Muzaffar has now reported this mega scam, which involves purchase of 20 armored vehicles, at very high cost of Rs 1.24 billion, from M/s Yugoimport , Serbia without inviting tenders to the Chairman, National Accountability Bureau, Islamabad, Qamar Zaman Chaudhry.
In a letter sent to him on June 28, he has summarized the entire issue as under:
1. On August 29, TI-Pakistan sent a letter to the Inspector General Police Sindh, informing him that he had sent a team to Serbia to visit M/s Yugoimport, for inspection of armored vehicles, and that Sindh Public Procurement Regularity Authority was requested to give approval, to make this procurement, as per Rule 16 (b) under emergency, which was not approved by the Chief Minister. Transparency International Pakistan had requested the Inspector General Police, to examine the violations quoted, and in case the Sindh Police is procuring the vehicles from Serbia, without inviting tenders, then the procurement would be deemed and declared as Mis-procurement under Rule 56 of Sindh Public Procurement Rules 2010 and such act is defined as Corruption and Corrupt Practices, under National Accountability Ordinance, 1999, Section 9.
2. On no response, a reminder was also sent to the IG Police on September 14, 2013.
3. On October 25, 2013 SPPRA informed TIP that IG Police Sindh has sought exemption for this procurement from SPPRA and that chief minister has accorded the exemption for Rule 16 (b)(ii)(vii) , and that NAB Sindh has also reviewed the case on April 26, 2013.
4. On September 27, 2013 TIP replied to SPPRA in which it challenged the exemption granted by CM on the grounds that this exemption is only allowed if these armored vehicles are not manufactured by any other company in world, and this was not the case.
5. On October 3, 2013 SPPRA agreeing with TI-Pakistan, informed IG Police that these armoured vehicles can not be procured under direct contracting, and that they shall ensure that bid process shall be competitive.
6. On February 20, 2014, Sindh Emergency Procurement Act 2014 was passed by Sindh Assembly, through which armored vehicles, bullet proof jackets, bullet proof helmets and bullet proof vehicles, arms and ammunition and other have been exempted from SPPRA for one year.
The documents available with TI-Pakistan, also reveals that the costs of the APC's are very high, 4 times than USA made. Only in one item, transportation for each APC ( size 18.5 feet X 8 feet X 8 feet, which is one 20 feet container) from Serbia to Karachi, the costs agreed by Sindh Police, and FBR Islamabad , is US $50,000, ( Rs 4,900,000). The current rates of transport of one 20 feet container from any port in Europe to Karachi are not more than US $2,000. Only in transportation loss to exchequer is Rs 100 million.
The seller is thus charging 25 times more than the market rates in transportation only. This overpricing confirms that the costs of APC's are also exorbitantly high, TI-Pakistan said.
Another question is as to why the contract was executed against SPPRA in March 2013 for only 16 APC whereas the CM had directed to purchase 20 APCs?
Chairman NAB has been requested to take up this matter with Sindh government, as it is a matter of exchequer's money and safety of policemen, and the funds are to be spent on competitive basis.
Copies of the letter have been forwarded for information with the request to take action under their mandate to: Secretary to Prime Minister, Islamabad, Chief Secretary, Government of Sindh, Karachi, IG Police Sindh, Karachi , Sindh, with information that Emergency Procurement Act 2014 does not permit, IG Police Sindh to purchase without open tendering, Registrar, Sindh High Court, Karachi, and Managing Director, SPPRA, Karachi.