PESHAWAR: The Khyber Pakhtunkhwa Public Procurement Regulatory Authority (KPPPRA) is embroiled in a tug of war with the provincial finance department over the jurisdiction and exercise of authority in the spending of money and hiring of the people.

The row has brought the province’s top regulator tasked with ensuring transparency in the public sector procurements, in the limelight for the alleged violation of rules and irregularities.

Documents available with Dawn show that the finance department is set to constitute a fact-finding committee to look into the alleged irregularities.

In October last year, the then finance secretary, Ahmad Hanif Orakzai, had notified the formation of a two members committee to investigate the alleged irregularities in authority.

However, Mr. Orakzai was transferred on November 19 and made an officer on special duty.

The committee tasked with presenting a report on the matter within 15 days died a slow death as one of its members was later transferred to the law department.

Sources link Mr. Orakzai’s removal from the finance department to the KPPPRA probe.

An internal memo submitted to the finance secretary, a copy of which is available with Dawn, points out that in light of the repeated complaints of mis-procurement, mismanagement and violation of rules, the finance minister directed the authority to stop the hiring process.

KPPPRA faces charges of irregularities in expenditure and hiring

It added that instead of explaining its position on the matter, the KPPPRA not only carried out the recruitment but also took a position to defend to mismanagement in the authority.

The memo notes that the body took three months to respond to three letters issued in June by taking a position, which is unwarranted and uncalled-for, from a body entrusted with heavy responsibility of maintaining order in public sector procurements.

It says the complaints are received about unauthorised participation of the KPPPRA representatives in tendering and procurement process, influencing procurements in contravention with its defied functions as the authority is a regulator and must not indulge in procurement process.

The memo alleges the KPPPRA is resorting to tendering advice and vetting tenders and that its opinion is often arbitrary, skewed and contravention of procurement rules.

The authority is also accused of causing losses to the province’s exchequer by engaging irrelevant officials in training besides violating rules in the hiring process. There’re also complaints that the people aged 65 were hired and paid salary packages which violated the government’s contract policy.

The memo also accuses the KPPPRA of unilaterally doubling its budgetary grant to Rs60 million in 2015-16 while availing financing from other windows at the same time.

It says non-salary budget of authority may be frozen till review of expenditure and approval of the budget and procurement plan of authority by its board of directors. It also calls for calling BoD meeting to review authority activities.

It also suggests formation of a two member fact finding committee to probe the recruitments made in the authority since its inception, consultant hired, consultancies awarded and outcomes thereof and grants received and expenditure there from.

In his response to three letters from finance department, KPPPRA in a letter dated Sept 7, 2015, said political interference in its affairs was a contravention of the Supreme Court’s judgment and that it was authorised to make appointments in the prescribed manner.

Referring to the finance minister’s direction to stop hiring, it observes that any arbitrary direction from a political office for stoppage of its legal function had no validity and is against interest of authority and therefore, the said direction warranted no further Procurement watchdog, finance dept in tug of war over powers action.

As for the authority’s response to the formation of probe committee on Nov 2, 2015, the Oct 29 order was arbitrary, irregular and without legal sanction and void and might be withdrawn ab initio.

It notes that an administrative inquiry can only be ordered by competent authority in prescribed manner and there are separate prescribed hierarchies for this purpose in all government departments and autonomous bodies. It notes that as per provision of KPPRA Act 2012, the powers of general directions and administration of authority are vested in 10 members BoD, while MD serves as chief executive officer and principal accounting officer.

“The issuance of any inquiry order pertaining to affairs and working of authority needs approval of BoD and execution through MD. The impugned order is, therefore, ultra vires and has no legal sanctity,” it says.

When contacted, KPPRA managing director Syed Mohammad Javed denied the allegations of irregularities.

He said all hiring in the authority had taken place strictly on merit by a selection committee formed by board.

The KPPRA managing director denied the allegations of vetting tenders saying it was under the authority’s powers given under Section 5 of the KPPRA Act 2012.

He said the authority was not currently receiving funds from donors and that it had initially received funding from the World Bank.

Mr. Javed said the KPPRA budget had been increased to Rs80 million after the number of the authority’s employees increased.

“No one is pocketing this money,” he said, adding that to conduct any inquiry, approval of the authority’s BoD was required.

Finance minister Muzaffar Said could not be contacted for comments despite repeated attempts.

Published in Dawn, January 13th, 2016