CDA violates contract rules

ISLAMABAD: While furnishing 70 suites in the parliament lodges, the Capital Development Authority (CDA) violated contract rules defined by Public Procurement Regulatory Authority (PPRA).

CDA overpaid the firm contracted for the project, whose initial winning of the tender had also raised eyebrows.

With only 20 suites of the lodges having been furnished so far, the authority has already released Rs20million in advance to the contractor for the completion of 40 suites, while another bill of Rs15 milion is with the Finance Directorate of CDA for clearance.

The cost incurred on one suite is approximately Rs0.57 million according to contract documents, which signifies that CDA should only have to pay Rs11.4 million to the contractor for completing 20 suites.

Initially, when CDA advertised tenders in different newspapers for the project, 11 firms were pre-qualified with May 11, 2010, as the deadline for submissions.

But prior to the opening of these tenders, they were cancelled on May 6. On May 7, seven of the 11 pre-qualified firms were asked to present their offers.

At that point, former director parliament lodges Shahid Mehmood pointed out that the procedure was going against PPRA rules.

According to procedures, interested parties are supposed to submit sealed tender documents which are later opened by the authority in front of all stakeholders. The lowest bidder is then awarded the contract in a fair and transparent manner.

Former Deputy Director Parliament Lodges Sardar Nawaz also opposed the irregularity in this tender’s procedure but both of these officials were transferred from their offices and replaced by Mian Muhammad and Mukhtar Ahmed.

A firm offered to work on Rs0.523 million per suite but that was excluded from the list of pre-qualified firms.

The firm Fine Furnishers was then given the project for Rs527.

The firm also enhanced its bid amount afterwards. This was also in violation of PPRA rules since it defeated the standard procedure of tendering for the lowest bidder.

Officials within CDA further disclosed that the contractor had been providing substandard furniture which he purchased from a local market in Rawalpindi. Advisor to Prime Minister Senator Mian Raza Rabbani also expressed his dissatisfaction over the quality of this furniture.

CDA DG Services Jamilur Rehman denied all allegations and claimed that CDA followed a meticulous procedure in making payments to contractors.  He claimed it was “impossible” to make payments without the required documentation.

However, completion of zero point inter-change was delayed because the authority failed to pay the contractor for his running bills.

Contractors, both public and private, have repeatedly complained that the CDA is notorious for delaying payments even after work is completed. In the controversial tender awarded to Fine Furnishers, payments have already been made for more than double the amount of work done.

Published in The Express Tribune, September 17^th, 2010.