Transparency International to monitor auction of 3G licence

PTA signs pact to address transparency concerns.

ISLAMABAD: As the government faces criticism over the way it has selected consultants for auction of over a billion-dollar 3G telecom spectrum, the telecom regulator has signed an integrity pact with Transparency International Pakistan to allow the watchdog to monitor the transaction aimed at ensuring transparency.

A memorandum of understanding was signed between TIP and Pakistan Telecommunication Authority (PTA) here on Friday and witnessed by Finance Minister Dr Abdul Hafeez Shaikh.

The inking of the MoU suggests that transparency concerns, expressed by parliamentary committees and industry people, are not misplaced as this is the third oversight arrangement to address corruption allegations.



Earlier, Auction Supervisory Committee (ASC) of the cabinet and five-member Oversight Committee have been constituted for the purpose.

“Our sole purpose is to make sure that no kickbacks or underhand deal is done in awarding 3G licence,” said Sohail Muzaffar, Chairman of TIP, after the signing ceremony. He said TIP will go through all the documents to ensure transparency in the process.

Marred by suspicion of underhand deals, so far all attempts to auction the 3G spectrum have remained fruitless. The government has estimated to receive at least $1 billion through the auction.

Controversy over hiring of consultants erupted again last month when PTA Chairman Farooq Awan himself shortlisted three consultants at hefty packages and claimed that the Auction Supervisory Committee had selected them.

The finance minister, who heads the ASC, distanced himself from the selection process. Responding to a question, he said the PTA chairman was of the view that it was the PTA’s mandate to hire the consultant.

Shaikh, however, maintained that TIP may also scrutinise the hiring of the consultant. Earlier, in May this year the ASC had rejected a panel of consultants chosen by then PTA chairman Dr Mohammad Yaseen.

Shaikh said the signing of the MoU will address increasing concerns over transparency in the auction process.

He admitted that the government was grappling to address governance issues and has decided to take all stakeholders into confidence.

The minister refrained from committing the timeframe for completing the auction process. The government wants to complete the transaction as early as possible but will not compromise on transparency, he added.

Published in The Express Tribune, December 15^th, 2012.