With Rs35m already due, no more free publicity for CDA

Advertising agencies refuse to bring out more ads until outstanding due are paid.

ISLAMABAD:

It’s been well over a month since the Capital Development Authority (CDA) has not released a single tender or public auction notice or any other advertisement to media. The reason for this is Rs35 million worth of outstanding dues that are yet to be paid to the advertising agencies working with the authority.

The civic agency issues advertisements through advertising firms including Midas Communications and Linkers and due to its financial condition it had not been making payments for ads it was getting published through these firms.

The situation resulted in piling up of several dozen auction notices, public notices, tender notices and other ads with the Public Relations Directorate of the authority.

Most of these notices are pertaining to the Maintenance Directorate and Environment Wing of CDA, while Engineering and Planning Wings have also been affected from the situation.

CDA usually releases around 25 ads and other notices per month through advertising agencies. Owing to the situation, routine developmental work on several small projects has virtually come to a halt.

Though the Public Relations Directorate submitted a summary regarding a release of outstanding dues to the advertising firms some 20 days ago, the Finance Directorate refused the request owing to paucity of funds.

“Suspension of advertisement is a routine matter in government departments. However, the issue will be resolved soon as Finance Directorate has assured us about release of outstanding dues to advertising firms,” CDA Spokesperson Ramzan Sajid said.

In a makeshift arrangement aimed to overcome the current situation the Public Relations Directorate had started posting tender notices on official website of the authority rather than publishing them in newspapers. The practice bore no results.



Such a tender notice where the authority had sought sealed bids from interested firms for the repair of Margalla Tourist Train was posted on CDA website on January 24. The closing date for the submission of bids for the project is February 7 (Thursday).

On the day of the deadline, only one firm had submitted required documents for the project. “The situation will definitely force the city managers to re-advertise the project, as Public Procurement Regulatory Authority provides for competent bidding process before awarding any project,” said an official of Environment Directorate, wishing not to be named.

The Engineering Wing of the authority also wants early release of tender notices regarding manufacturing and installation of three gigantic gates along the boundary wall of under-construction Park Enclave, a CDA housing project.

“We contacted the public relations directorate thrice during the past 20 days. Each time they refused, asking us to wait until the payments were made to the advertising firms,” an official of Engineering Wing confided.

When CDA Chairman Syed Tahir Shahbaz was contacted for his comments on the deteriorating financial condition of the authority, he said, “The financial health of the authority is satisfactory,” adding that it had improved over time.

He said issues pertaining to advertising agencies had already been resolved and they would be given outstanding dues within a day or two. Shahbaz, also gave a “good news” that the authority would hold another auction of land in March, 2013 to generate funds.

“We are paying our employees in time. We have cleared the outstanding dues to the contractors, while Iesco has also been given a portion of outstanding dues. So, overall financial health is satisfactory,” the chairman added.

Published in The Express Tribune, February 8^th, 2013.