January 14, 2007	Sunday	Zilhaj 23, 1427

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ISLAMABAD, Jan 13: The Ministry of Industries and Production caused over Rs33 million loss to the national kitty by delaying the finalisation of purchase of some vibratory road rollers for more than six years.

After such an abnormal delay, the ministry purchased 48 road rollers at higher rates, show documents of the audit department.

This is a classical example of how red tape and delays by various ministries cause billions of rupees losses to the national exchequer every year.

According to the audit department, an indent of procurement of 24 vibratory road rollers financed by the Asian Development Bank (ADB) was received by the Department of Supplies of the production ministry in December 1987. The first tender inquiry was floated in April 1988 and 28 offers were received. The case was sent to the ADB for guidance without any recommendation.

In June 1988, the ADB desired evaluation. Resultantly, a second tender inquiry was advertised at the end of the same year. But, the tender was cancelled without indicating any valid reasons.

The third tender inquiry was advertised in August 1989 against which 23 offers were received. An advance acceptance of tender was placed on January 24, 1991 on the lowest bidder. However, the ministry withheld any further action in this regard without any justification and reason.

Again, a tender was floated for the fourth time and was opened in February 1992 — a delay of another one year between the third and the fourth tender. In response, 16 offers were received.

But, instead of awarding contract to the first lowest bidder at $32,690 per road roller, the contract was placed in January 1993 on sixth lowest bidder on the advice of ADB for the purchase of 48 imported compactors (rollers) at $55,666 per roller.

The whole process was delayed for more than six years. This issue has now been taken by the Pubic Accounts Committee (PAC) of the National Assembly. The committee has suspected that the delay and losses to the national exchequer was caused by some high ups of the Department of Supplies of the Ministry of Industries and Production as they were demanding commissions in the deal.

The committee has also asked the ministry to provide complete information about the mark up on the loans of the Asian Development Bank at that time to know that as to why the bank recommended purchase of rollers at such higher rates.

The audit department has unearthed another scam of Rs5.7million losses to the national exchequer by the Department of Supplies of the production ministry in the “irregular purchase of substandard tarpaulins”.

In October 1993, the Department of Supplies floated a tender for the procurement of 1000 tarpaulins against an indent received from the Fertiliser Import Department. In response, seven offers were received.