ISLAMABAD: In a brewing alleged financial scam, the FBR’s internal procurement experts have asked the government in writing for cancellation of bidding process for installing millions of dollar worth of software to track down real production of cigarettes from legitimate manufacturers through a single bidder in order to ensure transparency.
The Competition Commission of Pakistan (CCP) has already raised several objections to procurement of track and trace system through policy note and recommended that the Request for Proposal (RFP) be amended allowing maximum bidders to participate in the bidding process.
After passing of several months, the FBR has now forwarded whole documents about track and trace system to the Public Procurement Regulatory Authority (PPRA) for scrutiny of the process.
This reporter sent out a written question to chairman FBR through an SMS for getting his viewpoint on the concerns raised by internal
procurement experts of the tax collection machinery.
The FBR’s spokesman Dr Mohammad Iqbal contacted The News and informed that they would take a final decision in the light of response of PPRA on this subject.
“If the PPRA allows, then the FBR will move ahead and in case of objection then the bidding process will be scrapped,” he added.
He said the PPRA response was expected to be received in next few days.
Official documents available with The News disclosed on Thursday that internal procurement experts belonging to both Inland Revenue Service (IRS) and Customs group had raised objections with their signatures that in view of violations and infirmities occurred so far in the procurement process and contractual/legal, technical and financial risks of the project, we are of considered opinion that continuation of this procurement may lead to legal, technical and procedural difficulties subsequently and the desired objective of value of money, efficiency, economy and transparency may not be achieved.
It is finally suggested the Tax Implementation Reform Commission’s committee may consider cancellation of the bidding process in the light of public procurement rules 33 and proceed for rebidding after fulfilling of requirements of PPRA rules 34.
Procurement experts further suggested to the FBR that it is highly sensitive and technical procurement of huge infrastructure involving massive financial implications and huge ICT procurement and needs to be undertaken by a dedicated team of practitioners consisting of experienced procurement experts with sufficient experience of making such procurements.
These experts can either be obtained through technical assistance (TA) from the World Bank or DFID or hiring externally.
It will be very risky and counter- productive if this highly technical procurement is undertaken by the FBR’s own staff without adequate technical and professional knowledge and relevant experience in this regard.
This project, according to them, has been facing difficulties since the beginning of 2014 and the FBR has already borne a big process and opportunity cost due to non- completion of this project in a timely, efficient and transparent manner, they added.
The FBR experts stated that available documentation and file record were examined and observations were made on the procurement management process of Track & Trace (T&T) System Project in the light of legal and regulatory framework provided in PP Rules 2004.
Violation of Rule-23 (3) of the PPRA Rules, 2004: Any information that becomes necessary for bidding or for bid evaluation, after submission of the Invitation for Bids (IFB) needs to be timely provided to the prospective bidders under Rule-23(3) of the PP Rules, 2004.
The queries regarding technical, managerial, financial and installation aspects of the proposed ICT solution in the intended procurement activity have not been duly responded to by MR so as to enable the bidders to timely prepare their bids accordingly, thereby resulting in bid submission by only one bidder — hence the litigation.
Violation of Rule-28(I) of the PP Rules, 2004: The Technical and Financial Bids by only one bidder were submitted on 17.08.2018. However, as per Rule-28(1) of the PP Rules, 2004, after a minimum time of 30 minutes, the technical bid was required to be opened after the said time period and the bid submission and opening event had to be recorded on the same day. As reported, the technical bid has not yet been opened despite the lapse of more than one month leading to serious transparency issues and likely legal complications. No Procurement committees were ever formed to evaluate the technical and financial bids accordingly.
Build Own Operate (BOO): Though not mentioned specifically, the T&T Project seems to steer towards the "Build Own Operate (BOO)" mode in view of the "Operate" part which will be performed by the selected bidder. The BOO is a traditional form of Public Private Partnership (PPP). As the PP Rules 2004 do not entertain any procurement under BOO or contain any specific provision for the same, the acquisition of ICT and Track & Trace equipment and provision of related services needs to be carried out under the Public Private Partnership Rules, 2017.
