TIP Termed Recent Amendments In Suger Import Tender As Corrupt and Fraudulent

Sunday, August 23, 2009 at 11:41 am under Business News TIP Termed Recent Amendments In Suger Import Tender As Corrupt and Fraudulent

ISLAMABAD, PAKISTAN: Transparency International Pakistan (TIP) has termed recent amendments in sugar import tender by the Trading Corporation of Pakistan (TCP) as ‘corrupt and fraudulent’, “the key purpose of which appears to be the benefit of one party”.

“(The) TCP should discontinue the prequalification process, and invite open tenders for all commodities, as has been agreed between TIP and TCP during our last meeting, and all procurement documents shall comply Public Procurement Rules 2004, specially Rule No 10 and 32, which eliminates favouritism to a single source”, said the letter written to TCP Chairman Saeed Khan.

TIP, in its letter said: “Transparency International Pakistan has noted from news published in Business Recorder of 22nd August 2009 on change of qualification and requirements to favour one particular source (to ‘facilitate’ only one Dubai-based party), in the tender for supply of 75,000 MT white refined/crystal sugar in bags (in break bulk) from world-wide sources ref Imp/Sugar/9-10/09, to be opened on 29th August 2009″.

According to TIP, a similar try was also made by TCP in February 2009, “and TI Pakistan had strongly opposed such tailor-made tender requirements, vide our letter dated 20th February 2009″. The amendments issued by TCP that allegedly favour a Dubai based firm are: (i) Shipment (clause No 15 (a): may now be read as follows: “first shipment of at least 12,500 MT within two (2) weeks from the date of opening of L/C and subsequent shipments of same quantity after every one week.”

(ii) Pre Shipment Inspection, in clause no.16 (a) the last word “buyer” is substituted with the word “seller”. Age of Vessel; in the 4th line the words “twenty five (25)” are replaced with the words “thirty (30)” and after the words…..over 15 years, insert the words “any and all”. In the last line, the following is also added:

“In case the vessel is above 25 years of age, then a penalty of $1 per year PMT will be borne by the supplier in addition to average premium as per Lloyds of London Scale.” Terms of shipment on C&F free out basis (for break bulk): the words….two thousand five hundred (2500) MT are substituted with two thousand (2000) MT and the word directs after the word cranes/to be read as derricks.

It was alleged in the February 2009 tender that the tender specifications are made to suite UAE supplier, namely M/s Al Kahleej Sugar Mills, Dubai. The amendments issued by TCO are clear violation of Public Procurement Rules 2004, and may be termed under Rule No 2 as corrupt and fraudulent practices on the basis of collusive practices among bidders (prior to or after bid submission) designed to establish bid prices at artificial, non-competitive levels and to deprive the procuring agencies of the benefits of free and open competition.

TIP further stated that TCP has been many times informed and knows the following mandatory conditions, which are applicable in all cases, Rule 10 Specifications.- Specifications shall allow the widest possible competition and shall not favour any single contractor or supplier nor put others at a disadvantage.

Rule 32: Discriminatory and difficult conditions.- Save as otherwise provided, no procuring agency shall introduce any condition, which discriminates between bidders or that is considered to be met with difficulty. In ascertaining the discriminatory or difficult nature of any condition reference will be made to the ordinary practices of that trade, manufacturing, construction business or service to which that particular procurement is related.

Written by: Asif Jah

Read More in: corrupt and fraudulent TIP Termed Recent Amendments

Tender Issued By TCP To Import 75K Tonnes Suger
ISLAMABAD: Pakistan is seeking to import 75,000 tones of white sugar in a tender that will close on Aug....

Pakistan Cancels Tender To Buy 50,000 Tonnes Sugar
ISLAMABAD: Pakistan has cancelled a tender to import 50,000 tonnes of white sugar, an official of the...

Suger Is Injurious To Health: Amin Faheem
ISLAMABAD: The Federal Minister for Commerce, Makhdoom Amin Faheem has advised nation cut in use of sugar...

Senate Committee Directs Reducing Rs8/kg On Suger Price
ISLAMABAD, PAKISTAN: A Senate Standing Committee directed to immediately cut down sugar price by Rs7...

Grab this Widget