Smokes and mirrors: Govt comes under fire as more corruption exposed
Rs 18 million fire tenders being purchases for Rs24 million, govt and company to pocket the difference.
KARACHI:
After years of heated debate, the provincial government has finally allocated funds for the purchase of fire tenders in various local councils. However, the procurement process has been marred by nepotism and embezzlement that may cause a loss of around Rs1.11 billion to the national exchequer.
The government has to procure around 186 fire tenders for various local councils of the province with the budgeted Rs3.24 billion. However, the purchasing order has been given to a ‘favoured company’ under a kickback deal. This controversy led to a war of words between the then local government secretary, Javeed Hanif, and Sindh local government minister Sharjeel Inam Memon. As a result, the secretary was transferred to another department.
“As per the specifications, the price of each fire tender is Rs18 million, but it has been artificially driven up to Rs24 million by the private company and government officials,” a senior official of the local government department told The Express Tribune. “The officials of our department are purchasing a fire tender by paying Rs6 million more than the market price to the company. They plan on sharing the additional amount between themselves.”
Sources said that Hanif resisted this deal and in his detailed objection note written to the finance department and the chief minister said, “The procurement committee of our department is violating the rules. We do not have enough budgetary resources. The procurement of the fire tenders should be done in light of the actual costs of each fire tender as it had earlier been approved at the latest market value. Otherwise, I will not be in a position to give my final consent on it.”
Soon after this objection note, Hanif was transferred and appointed as the industries secretary on July 7. He was replaced by Shazia Rizvi, who was asked to file a summary to the chief minister regarding the purchase of the fire tenders at the revised cost. After she did so, the newly appointed secretary went on a leave. Now, the charge of the department has been given to the local government director-general, Sajjad Abbasi, who has finalised the process and a work order has been issued to purchase the fire tenders.
When contacted, Abbasi refused to comment, while the department’s special secretary, Rasheed Solangi - who also heads the procurement committee - claimed that all requirements have been fulfilled and the approval of Sindh Chief Minister Qaim Ali Shah has also been obtained.
The fire tenders are being purchased for all districts of the province, except for Karachi, despite the allocation of Rs500 million for tenders and snorkels in the city. The procurement process has been delays for two years now, despite the dire need for fire tenders in Karachi.
Memon could not be contacted for his version as he is reportedly out of the country. However, the spokesperson for the CM house claimed that the chief minister has taken notice of this matter and has asked the procurement committee of the local government department to suspend the procurement process until further notice.
Published in The Express Tribune, September 1st, 2014.
After years of heated debate, the provincial government has finally allocated funds for the purchase of fire tenders in various local councils. However, the procurement process has been marred by nepotism and embezzlement that may cause a loss of around Rs1.11 billion to the national exchequer.
The government has to procure around 186 fire tenders for various local councils of the province with the budgeted Rs3.24 billion. However, the purchasing order has been given to a ‘favoured company’ under a kickback deal. This controversy led to a war of words between the then local government secretary, Javeed Hanif, and Sindh local government minister Sharjeel Inam Memon. As a result, the secretary was transferred to another department.
“As per the specifications, the price of each fire tender is Rs18 million, but it has been artificially driven up to Rs24 million by the private company and government officials,” a senior official of the local government department told The Express Tribune. “The officials of our department are purchasing a fire tender by paying Rs6 million more than the market price to the company. They plan on sharing the additional amount between themselves.”
Sources said that Hanif resisted this deal and in his detailed objection note written to the finance department and the chief minister said, “The procurement committee of our department is violating the rules. We do not have enough budgetary resources. The procurement of the fire tenders should be done in light of the actual costs of each fire tender as it had earlier been approved at the latest market value. Otherwise, I will not be in a position to give my final consent on it.”
Soon after this objection note, Hanif was transferred and appointed as the industries secretary on July 7. He was replaced by Shazia Rizvi, who was asked to file a summary to the chief minister regarding the purchase of the fire tenders at the revised cost. After she did so, the newly appointed secretary went on a leave. Now, the charge of the department has been given to the local government director-general, Sajjad Abbasi, who has finalised the process and a work order has been issued to purchase the fire tenders.
When contacted, Abbasi refused to comment, while the department’s special secretary, Rasheed Solangi - who also heads the procurement committee - claimed that all requirements have been fulfilled and the approval of Sindh Chief Minister Qaim Ali Shah has also been obtained.
The fire tenders are being purchased for all districts of the province, except for Karachi, despite the allocation of Rs500 million for tenders and snorkels in the city. The procurement process has been delays for two years now, despite the dire need for fire tenders in Karachi.
Memon could not be contacted for his version as he is reportedly out of the country. However, the spokesperson for the CM house claimed that the chief minister has taken notice of this matter and has asked the procurement committee of the local government department to suspend the procurement process until further notice.
Published in The Express Tribune, September 1st, 2014.