LDA cautioned against violation of PPR

[Salman]

Lahore Development Authority (LDA) has been put on notice by Transparency International Pakistan against violation of Punjab Procurement Rules (PPR) 2009,in the procurement of consultancy services for Integrated Strategic Development Plan for Lahore Region 2035 (ISDP-35).

TI-Pakistan, Adviser, Syed Adil Gilani in a letter sent on October 21 to the Director General, LDA, Ahad Khan Cheema has regretted that his letters of September 11, 19 and 27 on the subject have remained un-answered. He had questioned as to why LDA is not following the Punjab Procurement Rules 2009 in the procurement of consultancy services, and further in violation of law LDA has taken the stand that Punjab Procurement Rules 2009 are not applicable in the process of consultancy services.

The Chief Minister, Punjab had also formed a committee on this issue on September 27 "but you have not yet replied to our letter dated September 19, nor sent the report of Chief Minister's committee". Considering this violation as serious, TI-Pakistan has again cautioned the LDA, that according to Law, Punjab Procurement Rules 2009 are applicable in all services, and any contract awarded without following PPR 2009, will amount to mis-procurement under Rule No 5, as it will be a breach of the rules.

Adil Gilani said that services are defined in rule 2(n) of the Punjab Procurement Regulatory Authority (PPRA) 2009, as Public Procurement and quoted the definition as under:

Definition: In this Act: (n) "Public procurement" means acquisition of goods, services or rendering of works financed wholly or partly out of the Public Fund, unless excluded by the government. TI-Pakistan "again requests you to kindly terminate the process of this procurement, and re-invite the prequalification according to Punjab Procurement Rules 2009, and award the contract to the bidder who is fully compliant in technical bid, and is lowest in financial bid", he said.

Adil Gilani further quoted that the Supreme Court of Pakistan in the judgement announced on April 28, 2011 in suo motu case No 5 of 2010, has stated that it is the duty of the court to ensure strict compliance of the PPRA Ordinance and Public Procurement Rules, 2004.

"Here we may observe that it is the duty of the court to ensure that the Public Procurement Regulatory Authority Ordinance, 2002 read with the Public Procurement Rules, 2004 are adhered to strictly to exhibit transparency. It is universally recognised principle that such type of transactions must be made in transparent manner for the satisfaction of the people, who are the virtual owners of the national exchequer, which is being invested in these projects."