ISLAMABAD: Transparency International Pakistan has pointed out corruption of billions of rupees in the National Insurance Company Limited after violating the Public Procurement Rules, 2004.
NICL Chairman Ayaz Khan Niazi has been repeatedly asked by the TIP to explain the violation of the PPRA rules and the subsequent loss suffered by the public sector company but did not pay heed to the queries.
TIP Chairman Syed Adil Gilani has written letters to NICL, Registrar Supreme Court, National Accountability Bureau, Chairman Public Accounts Committee and Auditor General of Pakistan, enlisting the details of corruption of billions of rupees.
The letter states, “The NICL has been avoiding to provide clarifications of alleged losses caused to the exchequer in one year, communicated vide TIP letters dated February 16 and March 4 of 2010, and nor to PPRA on PPRA’s letter No F.1(18)/DD-II/PPRA/2010 dated February 17, which gives credence to the allegations of massive corruption going on in PIC since last one year.
“It is also reported that one of the Directors of the PIC has resigned in protest of non compliance of rules by PIC in Procurement of 803 Kanal-19 Marla Plot in Lahore. “The allegations reported to you by the TIP in the last six months and not clarified as yet by NIC are quoted below; Procurement of 803 Kanal -19 Marla Plot in Lahore reportedly belonging to ex-MNA Habibullah Warraich having a current market value is Rs300,000 per Kanal, whereas NICL is buying it at Rs2,000,000 per Kanal.
“2. 27,000sq ft of office space in Dubai in Liberty Tower was purchased in July 2009 at 2,700 dirhams per sq ft as against the market price of 1,200 dirham per sq ft. Alleged Loss to exchequer of Rs900 million.
“3. 10-acre plot purchased in Korangi Deh Phihai, in August 2009 at Rs20,000,000 per acre, against maximum market price of Rs 90,000,000 per acre. Loss of Rs70,000,000.
“4. Award of contracts of painting works and furniture to M/s Casa Bella Lahore, Karachi at Rs26.987 million, and at Islamabad at Rs9,310,000. M/s Casa Bella is not a license holder of the Pakistan Engineering Council. The tender for Karachi was for six floors but the contractor has been asked to paint only four floors.
“5. Rs1.5 billion land purchased in Lahore in 2009 from Mohsin Warraich. The market value of the plot is Rs 30 million. Loss to exchequer Rs1.2 billion.
“On Transparency International Pakistan’s complaint dated 8th and 23rd October 2009, the award of the HVAC contract to M/s Roma Business Consultants reported at Rs120 million higher cost, who was not even a PEC licensed Contractor was terminated by PIC vide its letter No Bldg/36/(29)/HVAC/2009 dated 12 Nov 2009. TIP requests you to kindly report administrative action taken against the PIC officers for this illegal award.”
The TIP letter has also quoted the judgment announced by the Supreme Court on April 28, in case of award of LNG contract to GDF-Suez, in which the Court announced that it was the duty of the Court to ensure the application of Public Procurement Rules 2004.
Source: The News
Date:5/7/2010
