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TI Pakistan accuses PSM of violating procurement rules




  •  Pakistan Steel is one of the biggest violators of the Public Procurement Rules (PPR) 2004, especially in the procurement of iron ore from 2008 till date, which has stopped the core activity of Pakistan Steel, according to Transparency International Pakistan. 

    In a letter sent to Chief Executive Officer, Pakistan Steel, Major-General Muhammad Javed (Retd) on February 11, Adviser, Transparency International-Pakistan, Syed Adil Gilani dubbed Pakistan Steel’s reply of February 7 as wrong, adding the since its inception it has been using Indian iron ore. 

    Pakistan’s steel productivity has been made non-functional since 2008 only due to the deliberate elimination of imported iron ore from India. “Pakistan Steel made a wrong decision in 2008 and contracted a small quantity of iron ore from Iran against the PPRA rules,” he said. 

    Indian ore, he said has been deliberately eliminated through a change in specification, as the Indian ore, always has Fe content of less than 57%, and alumina of over 5% and accepted by Pakistan Steel. Difficult specifications were made by Pakistan Steel as it had asked the bidders for Fe content of more than 60%, and alumina of over 3 %. Resultantly Pakistan Steel has not been able to produce any substantial quantity of products, due to the manipulation of specifications established by Pakistan Steel in the year 2008. 

    Transparency International Pakistan had been repeatedly advising Pakistan Steel that this was a difficult condition under PPRA 2004 rule no. 32, but Pakistan Steel did not amend the tender documents, which resulted in the loss of production, and perpetual loss of over Rs 20 to 25 billion per annum. 

    Present C.E.O has not honoured the MOU signed between Transparency International Pakistan and Pakistan Steel Mill, and failed to invite TI-Pakistan in tender opening, which could have reversed the discriminatory act of Pakistan Steel, and saved billions of Rupees losses being incurred today. Adil Gilani said that the pervious chairman of Pakistan Steel in 2008 did the same thing and did not act to abide with the transparent procedure agreed between Transparency International Pakistan and Pakistan Steel Mills. 

    He had also replied to Transparency International Pakistan that Pakistan Steel cannot follow the transparent procedure. The result of the denial of the previous chairman of Pakistan Steel was evident as Pakistan Steel is facing corruption cases worth billions of rupees in the Supreme Court of Pakistan. TI-Pakistan is striving to have the Rule of Law in Pakistan, which is the only way to eliminate corruption and have good governance in the country, Adil Gilani said. 

    Copies of the letter have been forwarded for information and action under the receptive mandate of: Chairman, Public Accounts Committee, Islamabad, Registrar, Supreme Court of Pakistan, Islamabad, Chairman, NAB, Islamabad, Auditor General, Islamabad, and Managing Director, PPRA, Islamabad – with a request to take action under section 5(2) (a) “monitor application of the laws, rules, regulations, policies and procedures in respect of, or relating to, procurement” and under section 5(2) (i) of the PPRA Ordinance 2002. 

    Copyright Business Recorder, 2013

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