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- Tuesday, October 09, 2012 - From Print Edition


ISLAMABAD: Pakistan State Oil’s recent deal of affreightment with Pakistan National Shipping Corporation has been severely criticised by the Transparency International terming it being against the Public Procurement Rules.


Naeem Yahya Mir, Managing Director PSO has been urged by TI-Pakistan to ensure the PPRA Rules and to cancel the affreightment contract with PNSC and call an open tender to ensure transparency in the affairs of the public sector entity.


A letter written to the MD PSO by TI-Pakistan highlights that any award of contract to any contractor/organization by a public procuring agency without inviting open tenders is a violation of Rule No 20 of the PPRA Rules 2004.


Transparency has also referred to the Supreme Court’s judgment in the Rental Power Plants case on 30th March 2012, where it stated that: ‘As it has been pointed out time and again, with a view to achieving the goal of transparency in awarding contract or in making procurement, open competition is prerequisite under the PPRA Rules.’ ‘TI-P also refers to the key factors to be considered in the procurement of public contracts identified by the Supreme Court of Pakistan in its judgment given in the Rental Power Plants Case. The features include (1)upholding competition among firms (2) promoting best value for money (3) encouraging more firms to bid on work (4) maintaining openness and transparency in the bidding process(5) executing contracts quickly (6) ensuring quality of goods and services and (7) meeting other obligations required for federal procurement. You are to know that PNSC is like any other public sector organization e.g M/S NLC, M/ S NESPAK, M/S Railcop, M/s National Construction Company and M/S FWO etc and they all can not be awarded unsolicited contracts and shall participate in tenders under Public Procurement Rules 2004.’


TI-Pakistan has also requested the MD to cancel the contract and invite public tenders to ensure transparency in its procurements. PSO is also requested to confirm compliance of the PPRA Ordinance 2002 and Public Procurement Rules 2004, the letter concludes.