The Lahore High Court (LHC) on Thursday summoned the National Highway Authority (NHA) chairperson to appear in court in a petition challenging the award of advertising and promotional contracts along a section of motorway to Evolves Company allegedly at low rates.
Justice Umar Ata Bandial issued the direction after the respondent authority and the company failed to submit their replies.
The petition was filed by Advocate Muhammad Imran Chauhan who said that in awarding the contracts at low rate the NHA had caused a loss to the national exchequer.
He said that in 2005 NHA had given a contract to Evolves Company for five years at Rs1.3 million per annum for advertisements along the Lahore-Sahiwal motorway (M-5). He said that in 2006, the NHA gave additional advertising rights to the said company for the Lahore-Kala Shah Kaku Motorway (M-2) without charging it any money. The petitioner submitted that when the contract for M-5 expired in 2010, it was extended by two years without any announcement for tenders.
He said that instead of increasing the rates, the NHA reduced the annual advertising rates from Rs1.3 million to Rs0.8 million. The petitioner said that NHA could not extend the contract or reduce the rates without calling tenders for open competition to other contractors.
Published in The Express Tribune, July 15th, 2011.
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