Transparency International Pakistan has raised concerns over alleged procurement irregularities in the award of the Rs. 20 billion e-gate project for major airports, urging the Pakistan Airports Authority to review the matter and retender the project through open competition.
In a letter dated April 27 to the Director General of the Pakistan Airports Authority, the watchdog said it had received a complaint alleging that the contract was awarded without open bidding and through a possible misuse of PPRA Rule 42(f).
According to the complaint, the contract was allegedly awarded to a preselected group without following open competition requirements under the Public Procurement Rules 2004. The complaint further alleged that Rule 42(f), which applies to state-owned entities under certain conditions, was used despite the reported lack of in-house technology, expertise and resources required to execute the project independently.
Transparency International Pakistan said that, on a prima facie basis, the allegations appeared to carry weight and warned that the procurement could amount to mis-procurement under the relevant PPRA rules if the claims are proven.
The letter also questioned the alleged absence of mandatory documents on the PPRA website, including the evaluation report and contract agreement. It further referred to alleged lapses related to beneficial ownership disclosures, price reasonability checks and performance bond requirements.
Among the most serious claims, the complaint alleged that the contract was awarded at around 100% above market prices. It also said penalties under integrity pact rules could apply if any wrongdoing is established.
Transparency International Pakistan asked the Airports Authority to examine the allegations and issue directions for the project to be tendered through open competition in accordance with procurement laws.
The organization clarified that it is not itself the complainant and is acting as a whistleblower under Article 19-A of the Constitution, which guarantees the public’s right to access information regarding the functioning of public authorities.
Copies of the letter were also sent to several senior officials and institutions, including the Prime Minister’s adviser, the Ministry of Defence, PPRA, NAB, FIA and the registrar of the Supreme Court, with a request for action under their respective mandates.
