Daily Times

ISLAMABAD: National Power Control Centre (NPCC), a subsidiary department of the water and power ministry now headed by Khawaja Asif, has awarded a civil contract worth more than Rs 65.80 million to National Electronic Complex of Pakistan (NECOP), in violation of the laws of Pakistan Procurement Regularity Authority (PPRA) and existing standard procedures.

According to existing laws, the National Power Control Centre NPCC was bound under PPRA laws to float advertisements regarding work in the press to seek tenders from construction firms registered with the Pakistan Engineering Council and open bidding process was supposed to be conducted. However, NPCC did not observe the procedure and has allegedly awarded the work to NECOP, breaching all relevant laws.

Senior management of National Power Control Centre NPCC has now signed a Memorandum of Understanding with the National Electronic Complex of Pakistan for execution of civil work project costing over Rs 65.80 million that would be completed within four months, the document revealed.

The Ministry of Water and Power has been tainted by corruption scams worth billions of rupees cooked up in the past, and this latest one is likely to be particularly damaging because another government organisation is involved in the matter and both public sector entities are bound to obey the government rules and statuary laws before signing any agreement.

It is intriguing that the Ministry of Water and Power has awarded civil work contracts to the National Electronic Complex of Pakistan which does not have previous experience of civil work and in the past has not executed such nature of work. According to an MOU signed between both government organisations, the National Power Control Centre will release 50% of the amount of the total contract value in advance after submission of technical drawing of civil work and specification of security equipment to be procured by NECOP after their vetting from concerned department board of directors of NPCC, the document shows.

Another interest clause of the agreement revealed that NECOP will provide the contractual documents to NPCC within one month of signing an MOU. After that, NPCC will release the remaining 50% amount, Rs 32.90 million after signing of the contract. Civil work will start only after the approval of the civil structure, drawing by the concerned departments of NPCC and the work will commence within one month after the date of receipt of 100 per cent advance payment, Rs 65.80 million.

The most controversial clause of the agreement is that after completing the civil work and informing NPCC in writing to take over the project, NECOP will issue an invoice based on actual work done at the site and the balance amount, if any. The contract price will be adjusted later on accordingly.

While talking to Daily Times, General Manager National Power Control Centre Muhammad Ilyas, who has signed the memorandum of understanding on behalf of his department, admitted that the contract for construction of civil work has been awarded to NECOP without observing PPRA laws with the consent of the water and power ministry. He said that this memorandum of understanding was signed between two government departments and PPRA rules could not be applied to the project where government entities were involved. Daily Times also approached the minister and secretary water and power for their comments on this corruption related issue but the both did not respond to our inquiries.