ISLAMABAD: Order reserved in Rs5.1bn contract case
By Nasir Iqbal
ISLAMABAD, Feb 4: The Supreme Court has reserved its judgment on a challenge to a contract worth Rs5.1 billion awarded to a firm to build and maintain a shopping mall by the Defence Housing Authority (DHA) Karachi.
A two-member bench, comprising Justice Abdul Hameed Dogar and Justice Mian Shakirullah Jan, was hearing a petition of Pervez Hussain against the DHA which had awarded the contract in 2005 to M/s Global Haly for construction, running and maintenance of the shopping mall in Creek City Complex Karachi.
Senior Advocate Aitzaz Ahsan representing Echowest before the court alleged that while awarding the contract, the terms of the Request for Proposal (RFP) were breached to collusively favour Global Haly.
During the hearing, Advocates Hafeez Pirzada and Kamal Azfer appeared as counsel for Mall Developers and Global Haly respectively.
Since departure has been made from the terms earlier spelt out to other bidders including Echowest and Mall Developers, Aitzaz Ahsan contended, , therefore,, re-bidding should be held through fresh advertisement to provide a level playing field and fair, transparent process to all bidders.
Similarly the period of lease in RFP was 30 years extendible by another 30 years, but in violation of the actual term, it was extended to 99 years to favour the firm, he contended.
The original term restricts developers to mortgage the property to obtain loan but while awarding the contract, favour was extended to Global Haly by giving it the right to mortgage to raise funding.
Despite conditions in the original RFP that only pre- qualified firms could submit bids, he argued, Global Haly was allowed to participate in bid process without fresh advertisement, even though it was not pre-qualified. M/s Echowest, was the only pre-qualified bidder, he pleaded.
After hearing arguments in detail, the bench reserved its judgment.
