ISLAMABAD: The Metropolitan Corporation Islamabad (MCI) on Tuesday received a bid of just Rs45 million for the auction of the I-12 cattle market for Eidul Azha, on the first day of a two-day action.

According to financial rules, the MCI cannot award a contract lower than the previous year’s bid.

The city’s largest market for sacrificial animals is set up every year in I-12. It received more than 100,000 animals from various areas, especially Punjab.

An MCI official who asked not to be named said: “There is something fishy about this auction. It seems the contractor has made a cartel.”

He said the site for the cattle market was auctioned for Rs71.2m last year, and for Rs72m in 2017.

“I cannot understand what’s wrong this year. It seems the contractors held pole bidding today,” the official said.

According to financial rules, the MCI cannot award a contract lower than the previous year’s bid, which was Rs71.2m

The Directorate of Municipal Administration (DMA) generates significant revenue every year by auctioning this market, but this year’s bids were surprisingly low. The auction will continue today (Wednesday).

DMA Director Shafi Marwat said: “Today we received Rs45m asthe highest bid. We are hopeful that we will receive a good response on Wednesday. Rs71m is the benchmark.”

Mayor Sheikh Anser Aziz said he would monitor the auction on Wednesday. He added that he would look into why the contractors did not show an interest on the first day.

“I cannot rule out pole bidding. But let me make it clear: we will make a decision in the best interests of the MCI,” he said.

Some DMA officials said that if contractors do not make appropriate bids on the second day either, the directorate could run the market itself.

However, sources said the DMA could not even generate a revenue of Rs7m, and this would open a new Pandora’s Box.

“The best possible option is for the DMA to facilitate animal sellers voluntarily and money should not be involved in the entire process,” an MCI official said.

He added that the DMA auctions the cattle markets for the highest rate every year, and the market’s operator - in violation of the agreement - charges higher rates to animal sellers to bring animals to market. Ultimately, it is the buyers of sacrificial animals that have to pay high prices.

“Let’s see. We have one more day, so we are hopeful we will receive the required bid,” he said.

Animal sellers complain almost every year that they are forced to pay high rates to the contract. Last year, whenDawnvisited the cattle market, animal sellers said they paid Rs2,500 for the entry of large animals when the DMA’s approved rate was Rs1,000.

The DMA will also auction five smaller cattle markets to be set up in Bhara Kahu, Rawat, Taramri, Sara-i-Kharboza and Saidpur.

Published in Dawn, July 24th, 2019