Banking on terrorism
ISLAMABAD: Recently ranked as 'The Most Corrupt Province' by the Transparency International (TI) in its latest report on Pakistan, Kyber-Pakhtoonkhwa province has been rocked by a new corruption scandal as grave irregularities have been marked in the purchase of GSM trackers, worth millions of rupees, to intercept Taliban's communication network in the militancy-hit areas.
The official documents available with this correspondent posit a cost of Rs 215 million for the proposed purchase of three GSM units. But ultimately the cost to install these GMS units at different locations in the province, including one at provincial capital Peshawar, would reach a hefty sum of one billion rupees. This scam, according to a commentator, where the contract to purchase the GSM system was granted on a single tender basis, is one of the serious financial and administrative irregularities that earned this province a shocking title from the Transparency International. A visibly embarrassed provincial government, headed by Awami National Party (ANP), has already sent a legal notice to the Transparency International, Pakistan chapter, demanding Rs 5 billion as compensation for what it termed tarnishing of its clean image by declaring Khyber-Pakhtoonkhwa the most corrupt province.
In the past, members of Khyber-Pakhtoonkhwa provincial assembly have been accused of selling their votes when Senate elections were held. The members of Senate (federal parliament's upper house) are elected by provincial parliaments. Meantime, documentary evidences are forthcoming as how provincial high ups in the name of 'war on terror' are violating the procurement rules----benefitting a few influential----in making illegal gains from such shady deals. A source in the provincial government asserts that a Lahore-based influential businessman was granted the contract to install the GSM system on a single tender basis while bids by five other parties were rejected.
Meanwhile, official documents reveal that proposal to install the GSM tracker system was put forward by a provincial police officer. In his official summary in the name of Chief Minister of Khyber-Pakhtoonkhwa, the Secretary Home and Tribal Affairs has justified the purchase of the GSM system on single tender basis. In his summary, the secretary points out that the "law and order situation we have been witnessing in the province has necessitated the adoption of all possible measures to protect the lives and property of the citizens of the province. The provincial government is aware of these expectations of the public, to procure the required technical security equipment to equip the police for ensuring these objectives".
The summary says the "GSM Tracker is effective equipment which helps to intercept the communication network of terrorists for pre-emptive action and earlier apprehension of the culprits".
On the bidding process, the summary says: the "bids were called through national dailies to purchase GSM trackers. Four firms participated in the tender. The spaces of each firm were checked by the technical committee. The field trials and test of the equipment was not carried as the samples were not provided. Moreover, there were certain observations about the technical capabilities of the equipment from certain quarters, hence it was dropped. The GSM tracker was re-tendered on 23.12.2009 which was published in the English dailies The News and Dawn to ensure the wide publicity. However, not a single firm participated in the process".
The summary says, in the "meanwhile, consultations were carried out with other provinces. A team of officers consisting of DG PCU NWPF police and secretary finance Government of NWFP were sent to Lahore for carrying out a technical and procedural assessment. It came to the light that Punjab police have purchased an active GSM tracker system from a private party after satisfactory field trials at a unit price of Euro 710,400 (inclusive 28 percent duties and taxes). NWFP police need 3 units, one each for Peshawar, Northern and Southern Regions for effective surveillance of the militants which will help in their identification and apprehension."
The official summary, in a bid to justify award of contract to Lahore-based party without further tendering, reads: "The tender procedures were adopted twice with no positive results which have consumed a lot of time. It is apprehended that third time advertisement will further take at least one more month without any positive result".
Hence, the summary goes on, "in the light of the above, it is proposed that permission may be granted for the purchase of 3 units of GSM trackers system from the same company which had provided the equipments to Punjab on single source basis as per provision under rule 36 of NWFP procurement of goods, works and service rules 2003 at a unit price of Euro 710,400 (inclusive of taxes and duties)".
However, when the summary landed in the office of Chief Minister Amir Haider Khan Hoti, he sought Finance Division's views on the proposal. Though the Finance Division approved of procuring the GSM system to fight back widespread terrorism in the province yet the provincial finance secretary said in his note that Administrative Department did not indicate the source of funding of proposed purchase.
When contacted, an official of provincial government defended the process to buy the GSM system. He wondered why the media did not understand that we were living in abnormal times and we could not afford the normal process taking months owing to traditional bureaucratic lethargy. He questioned as to why should that deal be doubted when the equipment was being purchased from the same Lahore-based party that had already provided similar equipment to the Punjab government. He said if there was no scam when the Punjab government bought these GSM trackers from the same private party, why hue and cry was raised in case of Khyber- Pakhtoonkhwa government. "If we have done something wrong, better point out the Punjab first which has been given title of comparatively less corrupt province', the official said in a sarcastic tone.