ISLAMABAD: The Transparency International Pakistan (TIP) has raised objections to the bidding process of the Privatisation Commission, alleging that ‘Haidermota-BNR’ has been given undue favour for the provision of financial advisory services in several projects with different joint ventures.

In the case of PIA, Haidermota BNR participated in the bidding process for procurement of financial advisory services with two joint ventures. It also submitted bids with two joint ventures in Fesco and bids with three joint ventures in the National Power Construction Company (NPCC).

Haidermota-BNR has consistently been violating PPRA rules and submitting more than one bid with different joint ventures, it alleged.

In a letter to Privatisation Commission Chairman Muhammad Zubair, TIP Chairman Sohail Muzaffar said the company should have been debarred by the PC because under the regulations of the Public Procurement Rules 2004 the standard bidding documents did not allow one bidder to participate in more than one joint venture.

Both joint ventures as per PPRA rules stand disqualified and should not have been allowed to participate in this as well as in future projects of the PC, according to TIP chairman.

Violating the PPRA rules in “appointment of Financial Advisory Services” by the commission might already have made the entire process of privatisation as non-transparent, as one favoured bidder had been awarded four projects in contravention to the rules, he said.

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“This is to point out that in all joint ventures, all partners have to give commitments that all partners — jointly and severally — will be responsible for performance. A common firm in two joint ventures is also a conflict of interest, and amounts to cartelisation,” Mr Muzaffar said.

TIP urged the PC to scrap all the projects involved and restart the process of appointment of consultants in a transparent manner, and in compliance with the PPRA rules, the evaluation criteria should be given in RFP so that firms of integrity should participate, award the contract as per rules and perform on merit and at the most economical cost.

Published in Dawn, Aug 2nd , 2014