July 22, 2006	Saturday	Jumadi-ul-Sani 25, 1427

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ISLAMABAD, July 21: The Public Accounts Committee (PAC) on Friday ordered disciplinary action against Civil Aviation Authority employees, who had caused a Rs6.594 million loss to the authority.

Although, CAA officials present at the meeting tried their best to convince the PAC that their colleagues did not commit any wrongdoing, the committee PAC members had no doubt that the losses had occurred due to deliberate violation of rules and the dishonesty of the concerned officials.

CAA has to report back to the PAC within 30 days about the action taken against the officials concerned.

In the first instance, a loss of Rs5.052 million was incurred as airport manager Lahore could not allot the contract for ‘two per cent collection of cargo through put charges’ to licensee at his re-tendered rates, but allowed him to continue at the old rate.

It was admitted by the CAA director-general that the bidding was delayed and should have been done three months before the expiry of the previous contract.

However, when tendering at the eleventh hour was done, the highest bid was received from the sitting contractor, but had to be cancelled due to over-writing of the offer.

The PAC members said the over-writing could have been condoned because it did not compromise the offer of any other bidder and the earnest money deposited by the highest bidder clarified what amount he was actually bidding.

The second highest bidder was then not given because it failed to provide partnership deed along with the offer. The auditor general and PAC members refused to accept the contention that the second highest bidder was disqualified merely because of absence of partnership deed, which was not a requirement as per tender documents.

Auditor General Yunus Khan further noted that when re- tendering was done, the reserve price was kept very low and, hence, the contract was finally awarded at a much lower price than the bid received during first tendering.

PAC Chairman Malik Allahyar observed that the dishonesty of the official was evident and, hence, he should be proceeded against.

Another loss of Rs1.542 million was reported from Karachi Airport where director airport awarded tender for welfare canteen to the second highest bidder. The highest bidder was rejected because he had left a column unfilled in the tender document.

However, the audit team pointed out that the second highest bid that was accepted was also faulty as it was not sealed, but the CAA officials overlooked this lacuna.

The CAA DG conceded that the bid under the condition should not have been accepted.

It should be recalled that audit paras discussed on Thursday revealed that the bidder who got the welfare canteen contract was given several other concessions, resulting in loss of millions of rupees to the CAA.

The PAC chairman noted that dishonesty was proven and disciplinary action should be initiated against the officers concerned.

Three audit paras relating to M/s Seiza Food of Amin Lakhani concerning suspected loss of about a billion rupees to the CAA at Karachi Airport were settled because the PAC was told that deviation from land lease policy had been approved by competent authority and that other concerns were speculative.