ISLAMABAD: In a bid to stop scams under the garb of quotations, Capital Development Authority (CDA) chief Mohammad Usman has ordered that the civic agency will not work on the basis of quotation system and any violation would result in strict disciplinary action.
The directives came amid a probe by the CDA into a multi-billion rupees scam carried out through the quotation system which allows the agency directorates to bypass tenders in emergency tasks under Rs500,000.
Sources said the CDA chief said there was no provision for carrying out development work through quotations while directing all directorates to follow the Public Procurement Regulatory Authority (PPRA) rules.
Despite orders issued on the directives of the CDA chief in February last year and April this year, various wings of the CDA, mainly three directorates, continued carrying out development work without tenders.
Directorates bypassed tenders to carry out projects worth billions
Though there are conflicting reports about the magnitude of construction work carried out under the quotation system, officials said at least Rs10 billion were spent on construction work through the quotation system.
Under quotations, only emergency work to the tune of Rs500,000 could be carried out through one quotation, but the civic agency spent Rs10 billion using the quotations system.
“Instead of going for open tenders, ‘piecemeal’ work was carried out through quotations,” said an engineer of the CDA. CDA Chairman told Dawn he had ordered that quotations would not be accepted anymore. “Development work should be carried out through a competitive process,” he said.
To a query, he said that the audit/probe of work done through quotation is in progress, and the audit team has been probing the matter. Asked about actions, he said: “In the light of the audit report we will move forward.”
Probe into Rs10bn scam
A notification issued by CDA’s deputy financial adviser Mohammad Tariq Lateef said a three-member committee comprising officers of the engineering wing had been formed to provide technical support to the director audit.
The civic agency will conduct audit of the first quarter of the fiscal year of its Market and Road Maintenance Directorate, Machinery Pool Organisation (MPO) and Environment Directorate.
The notification said a three-member committee of engineers headed by DG Services Mohammad Nawaz, Director Maintenance Mashooq Ali Sheikh and Director Planning and Development Ramesh Kumar would provide technical support to the director audit.
The committee has been tasked with verification of the work with regard to quantum and payment made thereof and to check quality of work executed through necessary tests where required.
Sources said Chairman Mohammad Usman came to know through his own sources that the three directorates had allegedly been involved in some wrongdoing while carrying out construction work.
Therefore, the sources said, the chairman decided to get the special audit done of the three directorates.
Sources said massive funds were utilised by the said directorates not only in the first quarter of this fiscal year but during the last few years as well, and huge payments were made against the work carried out through quotations.
Quotations were meant for carrying out minor works without calling tender to complete them on an emergency basis only.
However, the directorates used to award major work through quotations.
Though there are conflicting reports about total funds which were spent on quotations during the last few years, some officials said that around Rs8 billion were spent on quotation works during the last some years.
