Computer labs at schools: Contractors seek to avoid fine for bad equipment
Companies say Rs103 million penalty has not been fairly calculated.
Companies say Rs103 million penalty has not been fairly calculated. PHOTO: FILE
LAHORE:
Five companies that provided IT equipment and electronics for a government project to set up computer laboratories at schools are evading payment of a Rs103 million fine imposed on them over unsatisfactory after-sale service, The Express Tribune has learnt.
The government had launched the project in November 2010 to establish labs in 4,286 public schools in the Punjab. A project directorate had been set up to execute the Rs6 billion project.
The directorate awarded contracts to Siemens for the installation of IT equipment in 1,305 schools. Other contracts were awarded to Megaplus (1,046), Inbox (1,111 schools) and New Horizon (824 schools). PEL was contracted to install air conditioners in the labs.
The companies had agreed to a three-year warranty, covering repair and replacement of faulty software and hardware, said an official of the School Education Department. He spoke to The Express Tribune on condition of anonymity.
The government had withheld Rs39.46 million to Megaplus, Rs49.16 million to Siemens, Rs41.85 million to Inbox, Rs31.04 million to New Horizon and Rs8.03 million to PEL from the total payment.
The providers of equipment had agreed to respond to any software glitches within 24 hours of receiving a complaint, and replace faulty hardware within seven days. After seven days, the companies were to be fined Rs1,000 a day for each unaddressed complaint, the official said.
Initially, the directorate dealt with the complaints in a piecemeal maner; it emailed the complaints received from labs to the firms. The directorate had imposed penalties of Rs16 million on the companies until June 2011.
In July 2011, a web portal was introduced to record complaints online. After the web portal became functional, penalty of another Rs87.916 was imposed on the firms in December 2012. That include a fine of Rs40.08 million imposed on Megaplus, Rs6.43 million on Siemens, Rs28.13 on Inbox, Rs23.61 million on New Horizon and Rs715,000 on PEL.
The five contractors were notified about the fine in January 2013. They were asked to contact the directorate if they had any objection but only Siemens approached it, the official said.
In June 2013, 30 employees were appointed to the School Education Department and tasked with monitoring the labs, the official said.
He said the companies were now persuading the School Education Department’s Planning Wing to either waive or reduce the fine, saying that the amount had been unfairly calculated. “It appears they have promised financial benefits to planning wing officials to get the fine reduced or waived.”
School Education Department Deputy Secretary (Planning) Qaiser Rasheed admitted the firms were pressing for the fine to be waived off.
“The case has been sent to the Law and Parliamentary Affairs Department to seek its advice.”
School Education Department Secretary Jabbar Shaheen said he had no knowledge about the issue.
Muzammil Abbas, former IT manager for the lab project, said she could not comment.
Inbox’s Rashid Chaudhry said the matter was pending with the government and it was now up to the government to make a decision.
Numan Butt from Megaplus confirmed the fine had been imposed on the company. “I cannot comment further as the matter remains pending.” A representative of New Horizon did not comment.
Published in The Express Tribune, May 30th, 2014.
Five companies that provided IT equipment and electronics for a government project to set up computer laboratories at schools are evading payment of a Rs103 million fine imposed on them over unsatisfactory after-sale service, The Express Tribune has learnt.
The government had launched the project in November 2010 to establish labs in 4,286 public schools in the Punjab. A project directorate had been set up to execute the Rs6 billion project.
The directorate awarded contracts to Siemens for the installation of IT equipment in 1,305 schools. Other contracts were awarded to Megaplus (1,046), Inbox (1,111 schools) and New Horizon (824 schools). PEL was contracted to install air conditioners in the labs.
The companies had agreed to a three-year warranty, covering repair and replacement of faulty software and hardware, said an official of the School Education Department. He spoke to The Express Tribune on condition of anonymity.
The government had withheld Rs39.46 million to Megaplus, Rs49.16 million to Siemens, Rs41.85 million to Inbox, Rs31.04 million to New Horizon and Rs8.03 million to PEL from the total payment.
The providers of equipment had agreed to respond to any software glitches within 24 hours of receiving a complaint, and replace faulty hardware within seven days. After seven days, the companies were to be fined Rs1,000 a day for each unaddressed complaint, the official said.
Initially, the directorate dealt with the complaints in a piecemeal maner; it emailed the complaints received from labs to the firms. The directorate had imposed penalties of Rs16 million on the companies until June 2011.
In July 2011, a web portal was introduced to record complaints online. After the web portal became functional, penalty of another Rs87.916 was imposed on the firms in December 2012. That include a fine of Rs40.08 million imposed on Megaplus, Rs6.43 million on Siemens, Rs28.13 on Inbox, Rs23.61 million on New Horizon and Rs715,000 on PEL.
The five contractors were notified about the fine in January 2013. They were asked to contact the directorate if they had any objection but only Siemens approached it, the official said.
In June 2013, 30 employees were appointed to the School Education Department and tasked with monitoring the labs, the official said.
He said the companies were now persuading the School Education Department’s Planning Wing to either waive or reduce the fine, saying that the amount had been unfairly calculated. “It appears they have promised financial benefits to planning wing officials to get the fine reduced or waived.”
School Education Department Deputy Secretary (Planning) Qaiser Rasheed admitted the firms were pressing for the fine to be waived off.
“The case has been sent to the Law and Parliamentary Affairs Department to seek its advice.”
School Education Department Secretary Jabbar Shaheen said he had no knowledge about the issue.
Muzammil Abbas, former IT manager for the lab project, said she could not comment.
Inbox’s Rashid Chaudhry said the matter was pending with the government and it was now up to the government to make a decision.
Numan Butt from Megaplus confirmed the fine had been imposed on the company. “I cannot comment further as the matter remains pending.” A representative of New Horizon did not comment.
Published in The Express Tribune, May 30th, 2014.