Water crisis in capital: City managers minting money on war footing?

CDA chief cancels contract at last minute as some officials try to exploit situation.

ISLAMABAD:

At first, city managers let the water shortage in the capital morph into a crisis and when things got out of control they violated rules to ensure quick fixes, hoping to earn a profit on the side. As the water crisis deepens in the federal capital, the city managers decided to deal with it on a war footing during the peak summer season, as is the tradition.

The Capital Development Authority (CDA) has awarded a contract for Rs6 million for the repair and maintenance of water tankers without following the Public Procurement Regulatory Authority (PPRA) rules. In a similar move, the agency was also planning to install generators at tube-wells, for Rs30 million, to ensure unhindered supply of water to residents despite frequent power outages. CDA was in the process of awarding this contract on a single tender basis like for the tankers, but the CDA chairman thwarted the move.



A source said that at first a senior officer of the Engineering Wing approved Rs30 million for procuring generators. “The cost of one generator was worked out as Rs3.8 million, while its market price is Rs1.8 million,” the official said, adding that it caught the attention of the CDA Member Finance. Upon realising that the officials were quoting higher rates, member Finance informed the chairman and the two officers cross-checked the price.

Talking about the deplorable state of affairs, CDA Chairman Tahir Shahbaz said, “Some officials tried to exploit the situation, quoting more than double the rate for the generators.” He added he had ordered an inquiry into the case. “Member Finance has been assigned as inquiry officer.” CDA would install 11 generators on tube-wells for two months on rent. CDA would pay Rs2 million as rent for these generators.

Talking about the award of water tankers contract on single tender basis, he said it was the result of negligence by the relevant officers. “They (officers) delayed the process and now when there is a crisis CDA was left with no other option but to award the contract on a single tender. “However, we have given the contract for tyres to an authorised dealer,” Shahbaz said. When asked about a plan to engage private water tankers for supplying water the chairman said, “We refused as they were quoting 42 per cent higher rates than last year.”

According to PPRA rules, contracts over Rs100,000 and up to the limit of Rs2 million should be advertised on CDA’s website in the  format specified, while a contract over Rs2 million should be advertised in the press. However, a concerned senior official contended that PPRA rules gave concessions in case of an emergency.

PPRA rules define an emergency situation as, “natural calamities, disasters, accidents, war and operational emergency which may give rise to abnormal situation requiring prompt and immediate action to limit or avoid damages.” An official of PPRA said in case of emergency the chief should justify such measures. “It’s a routine matter in summers. CDA was aware of the shortage beforehand, so in this case it’s negligence,” he added.

Published in The Express Tribune, June 16^th, 2013.