The indecent proposal: Safety that comes at a ‘higher’ price

Supreme Court questions multi-million-dollar Safe City Project; calls for transparency in the deal.

ISLAMABAD:

The Supreme Court on Thursday expressed its concern over the $124 million Safe City Project for Islamabad.

The court asked the government to ensure transparency in the deal and sought complete records of the project. Chief Justice Iftikhar Muhammad Chaudhry said that if the requirement for the same project was $8 million in Karachi, then allocation of such a huge amount for a small city like Islamabad needs some explanation.

A three-member bench of the apex court headed by Chief Justice Iftikhar Muhammad Chaudhry conducted the hearing of identical petitions and suo motu cases regarding irregularities in several departments of the government on Thursday. The court also directed the counsel for the Ministry of Interior to submit a statement about the project, which was awarded to Huawei Technologies.

A bench comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Muhammad Sair Ali and Justice Ghulam Rabbani resumed hearing of a plea filed by Shahid Orakzai. The SC also directed the ministry to ensure that the project is carried out transparently.

Initiated by the interior ministry, the series of projects aim to strengthen security in cities, to protect them against terrorist threats and criminal activities. Under the project, equipment like CCTV cameras, explosive detectors and scanners will be installed at all entry and exit points of different cities.

Afnan Kundi, the interior ministry lawyer, submitted a document saying that the initial estimate for the project was $151 million but after a number of meetings and negotiations the cost was reduced to $124 million. He also claimed that the project was more advanced than the Karachi Safe City Project. However, Kundi added, the project’s PC-1 is yet to be approved by the planning division and the finance ministry.

Shahid Orakzai, the complainant, raised an objection that the project was never advertised. He said that the New Chinese Company offered to execute the project at a much lesser amount than Huawei Technologies, but their bid was ignored.

The petitioner alleged that on the recommendation of the interior ministry, the prime minister had exempted the project from the rules and regulations of Public Procurement Regulatory Authority, allowing Huawei to quote any price for equipment of its own specifications.

The petitioner claimed that the government was initially gearing up to initiate a $233.7 million (Rs 20 billion) Safe City Project for Islamabad and Peshawar with a Chinese firm without following the legal process. He said that the price of the equipment for the project was three times higher than the market price. However, the project for Peshawar was dropped from the plan later.

In response, Afnan Kundi maintained the contract was not binding and assured the bench that he would submit a statement regarding the deal with the company.

Attorney General of Pakistan Maulvi Anwarul Haq had earlier apprised the bench that the cost of project was yet to be determined. Chief Justice Chaudhry said that they would have to see if the project was in accordance with the country’s laws and constitution.

Published in The Express Tribune, June 3^rd, 2011.