Senate committee orders FBR to rescind Rs6bn vehicle purchase

ISLAMABAD: The Senate Finance Committee, led by Senator Saleem Mandviwalla, has instructed the Federal Board of Revenue (FBR) to immediately suspend its contentious plan to acquire 1,010 vehicles, a procurement valued at over Rs6 billion.

The decision drew sharp criticism from committee members, who denounced the purchase as "questionable" and "a gateway to corruption."

The matter surfaced during a Senate Finance Committee session, where the FBR’s justification for buying such a large fleet of vehicles for its field officers came under scrutiny.

Chairman Saleem Mandviwalla questioned the rationale behind such an extensive acquisition. “Why is the FBR purchasing over a thousand vehicles? Were field officers previously collecting taxes on bicycles?” he remarked.

Senator Faisal Vawda raised serious concerns, alleging that the FBR is procuring vehicles from specific companies, describing the deal as "a shady contract."

“This is a huge scandal, the way for corruption has been opened,” he said, adding that the vehicles might be an attempt to compensate for the FBR’s tax shortfall.

He urged the FBR to suspend the purchase, recommending that future procurement follow a competitive process to ensure transparency. "If this purchase is not stopped, it will turn into a major corruption scandal," Vawda warned.

He further suggested that the FBR should wait until it meets its revenue shortfall before making such a substantial expenditure.

FBR officials defended the procurement, stating that the vehicles are intended to enhance the operational efficiency of field officers. They confirmed that the purchase order for the 1,010 vehicles had already been placed, with delivery scheduled in two phases between January and May 2025.

According to official documents, the FBR issued a letter of intent on January 13 for the Rs6 billion procurement. The first phase will see 500 vehicles delivered, with an advance payment of Rs3 billion already made.

The delivery schedule for the vehicles is planned in phases, beginning with 75 units in January, followed by 200 in February, and 225 in March. The second phase will include 250 vehicles in April and the final 260 in May.

The vehicles will bear the FBR logo for official identification, and each unit will be equipped with a tracker system, with service charges covered for the first year.

Senator Mandviwalla and other committee members expressed frustration at the speed and scale of the purchase. “Look at the insolence—this purchase order was placed in such a hurry,” Vawda remarked.