ISLAMABAD: The audit report 2015-16 has revealed irregularities in the Capital Development Authority (CDA)’s project of installing the national flag on a 220-foot-high pole on the greenbelt between H-8 and the Islamabad Highway, dubbed as the tallest in Southeast Asia.

According to the audit report, the CDA compromised transparency and awarded the contracts without calling tenders for the project worth Rs21 million.

Sources in the CDA told Dawn that the flag was installed on the directions of the Cabinet Secretariat after Prime Minister Nawaz Sharif saw the 207-foot-high Indian flag in Delhi on a visit to India in 2014 and was inspired to install an even higher Pakistani flag.

According to the report, the CDA directorate of parks initiated work on the construction of the pole, its design, manufacture, supply and installation in June 2014.

Audit report 2015-16 says CDA compromised transparency, awarded contracts of project without inviting tenders

The contract was awarded to the Heavy Mechanical Complex (HMC) Taxila at a cost of Rs21.38 million, which was their quoted bid without a notice inviting tender (NIT) and competitive bidding in violation of Public Procurement Rules 2004.

The audit noted that a detailed analysis of the rate – the cost of material, manufacturing, transportation, erection and installation - was not available with the CDA in order to ascertain the responsibility of rates.

“The components of erection/installation were added twice in the quotation,” the report said, adding the cost of material was put down at Rs14 million in addition to Rs5 million for transportation and installation.

“The cost is in no way justified,” the report stated, explaining that the construction of the foundation for the installation of the pole was already executed by another contractor for Rs2.88 million.

“This resulted in an irregular expenditure of Rs21.38 million.”

According to the audit, the CDA compromised transparency, deprived the entity of the advantage of competitive rates and denied fair opportunity to other prospective bidders for participation in the bidding process.

The audit had pointed out the irregularities in 2015 and the CDA replied that due to the complex and unique nature of the project the civic authority had approached the HMC to execute it on a “design-cum-construction basis” and that the HMC accordingly submitted a quotation of Rs21.38 million.

“The CDA reply was not tenable because neither its engineering wing analysed the rates nor any third party was involved to check the reasonability of rates,” the audit report concluded.

Published in Dawn October 5th, 2016