ISLAMABAD  -  The Public Accounts Committee on Wednesday expressed its reservations over the Capital Development Authority’s management for awarding several development projects through direct contracting instead of holding open competition. 

In recent past, the successive as well as incumbent management of the civic authority opted to award multibillion development projects under section 42-F of the Public Procurement Regulatory Authority rules, which was originally introduced to invoke only where an extreme emergency exists. 

The matter came under spotlight when audit officials briefed PAC that a project for the construction of Bhara Kahu Bypass was awarded without open competition on the plea of time sensitive project with the completion period of four months to the National Logistics Cell. 

However, the contractor could not complete the same work within the stipulated period even after the grant of a time extension of 214 days.

 Chairman PAC Junaid Akber Khan while expressing his reservations over direct mode of procurement said it is quite unfair that first projects worth billions of rupees were awarded without holding proper competition while sighting urgency as core reason but later same couldn’t even be completed on time besides paying extra money and compromising transparency and fair play. 

Chairman CDA Muhammad Ali Randawa informed the committee members that the project was started on the special directions of the Prime Minister and that was the reasons that CDA called bids from the state owned companies only. 

The audit further pointed out that the contractor was bound to provide asphaltic alternate route during construction of bypass and it charged CDA under this head as well but same were not provided on site —resulting fatal incidents. 

Chairman CDA informed that a commission is formed by the Prime Minister on accident occurred on site but its report is yet awaited. 

Chairman PAC dictated that the matter be referred to Federal Investigation Agency for proper investigation, however, he reversed his orders on the intervention of the Federal Secretary Interior Captain Retired Khurram Agha who requested to wait until the finalisation of an ongoing departmental inquiry. 

Chairman PAC has directed CDA to complete its inquiry and share its details with the audit and PAC within one month. 

Meanwhile, another matter related to extra payments without revising the milestones in development of low cost housing scheme at Farash Town was also came under discussion in which audit observed that initially 3960 apartments were to be built but later on the scope of the project was reduced to 2400 apartments, however, the contractor was made payments without revising the milestones. 

Chairman CDA Muhammad Ali Randawa while responding on the audit objections has informed that a revised PC-I is approved to adjust the payments already done to the contractor. He, however, categorically maintained that the financial progress of this project is 58 percent while in response the physical work done on site is 60 percent, which means that no extra payment is made to the contractor. 

He clarified further that earlier the project was initiated on the pattern of Naya Pakistan Housing Development Authority in previous government but now the civic authority has decided to dispose off the inventory in said project at its own to recover civic authority’s involvement. 

He said a summary in this regard is forwarded to Ministry of Interior, which will sought federal cabinet’s approval in this regard. The committee chairman directed CDA to obtain cabinet’s approval and same be shared with audit officials for the settlement of said audit objection.