Sunday, October 17, 2010

PWD awards Rs94m contracts without approval

ISLAMABAD: The Gilgit-Baltistan Public Works Department (PWD) has awarded contracts worth Rs94.1 million without approval and in clear violation of rules, according to the 2008-09 audit report.

The report, presented to a National Assembly special committee on Gilgit-Baltistan, reveals that the Executive Engineer Building and Road Division, G-B-PWD awarded as many as 13 contracts for dewelopment projects without advertising in newspapers.

According to the Procurement Rules 2004, tenders must be invited from registered pre-qualified contractors, firms and suppliers through advertisements in the press for works exceeding the sum of Rs100,000.

The audit document reveals that the value of each split work was more than Rs100,000 which resulted in irregular calling and acceptance of tenders for Rs94.1 million.

A Departmental Accounts Committee (DAC) in its meeting on July 29, contended that a sufficient number of contractors participated in the bidding and recommended for the settlement of the issue with the directions that the settlement will not be a precedent for other issues and procurement rules will be observed in the future.

The report also reveals that the G-B-PWD incurred Rs54.4 million losses in 2008-09 due to deficit in the operational expenses of electricity generation.

The reports stated that the Executive Engineer, Water and Power Division, Skardu incurred a huge expenditure of Rs84.8 million on thermal power generation through a diesel generator installed to cover the shortage of electricity/power generation against the receipt of electricity bills for Rs32.4 million. Due to the “non-construction” of hydel power stations in G-B, the department was sustaining a recurring loss of Rs.52.4 million per annum, the report added.

The department replied that the losses occurred as Wapda could not complete the hydel power generation projects within the stipulated.

The DAC, however, without giving any reason recommended for settlement of the audit para.

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