TIP pinpoints PPRA violations in procurement of laptops under PM Scheme

ISLAMABAD: The Transparency International (TI), Pakistan has pointed out PPRA violations in procurement of 100 thousand laptops under Prime Minister Laptop Scheme 2022-23.

According to a letter available with this scribe, the International Transparency Pakistan Chapter wrote a letter to Dr. Mukhtar Ahmed Chairman, Higher Education Commission on Friday.

The TI Pakistan mentioned in the letter that the organization has received a complaint against the violation of PPRA Rules 2004, in the invitation of bids Tender ID HEC-0230, procurement of 100,000 laptops for Prime Minister Laptop Scheme 2022-23.

The TIP said that the complainant has made allegations that the procuring agency restricted bidders to submit bids security in the form of Bank Draft/ Pay Order, which is in violation of rules.

The PPRA permits bidders to submit bids security from an insurance company having at least AA rating from PACRA/JCR in favour of the Employer.

The TIP has said that the market price of a laptop available for university students ranging from Rs 75,000 to 90,000 in the country Whereas, in this tender, the estimated price of a laptop is Rs 108,000 which is higher, considering 100,000 laptops to be procured.

Based on the authenticity of the submitted documents, prima facie, it appears that the allegations are correct, said in the letter.

The HEC has violated PPRA Rules 2004, for disallowing bidders to submit bids security from an insurance company having at least AA rating from PACRA/JCR in favour of the Employer, due to the fact that a Procuring agency when engaged in procurement of works, shall use the standard form of bidding documents prescribed by the Pakistan Engineering Council.

The Bid Security shall be, at the option of the bidder, in the form of Deposit at Call or a Bank Guarantee issued by a Scheduled Bank in Pakistan or from a foreign bank duly counter-guaranteed by a Scheduled Bank in Pakistan or an insurance company having at least AA rating from PACRAIKR in favour of the Employer valid for a period 28 days beyond the bid validity date.

The TI further said that the estimated cost Rs.108,000 per laptop is very high. The market price ranges from 75K to 90K which are listed prices, and for bulk supply, the prices are normally reduced by suppliers as bulk supply between 25 to 35 percent.

The violation of any of the PPRA Rules may amount to mis-procurement as per Rule 50 of the PPRA Rules 2004, mentioned in the letter.

The TI Pakistan has recommended to the Chairman HEC to look into the allegations and if found correct, re-invite the tender and the PC-1 may be prepared based on the market prices which may result in saving of Rs.5 billion on this project.

 

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