Asim Yasin
Thursday, June 14, 2012
ISLAMABAD: The Auditor General of Pakistan has detected irregularities in the payment of Rs1.005 billion to the Rural Support Programme Network in the Benazir Income Support Programme (BISP). The irregularities pertain to the award of three contracts in violation of World Bank guidelines for selection of consultants.
The massive irregularity of over Rs1 billion was detected in the audit report of financial year 2011-12. According to audit report, the management of BISP awarded three contracts amounting to Rs1.70 billion for assignments titled “Nationwide Rollout of Poverty Scorecard for National Targeting System” under the project “Social Safety net Technical Assistance.
The contract to one company was given at Rs649.924 million covering 19 districts of Upper Punjab and AJK, which commenced on August 6, 2010 with stipulated date of completion on May 15, 2011.
Second cluster “C” amounting to Rs709.954 million covering 23 districts of Sindh was commenced on July 10, 2010 with stipulated date of completion on April 11, 2011.
Cluster “D” amounting to Rs345.792 million covering 21 districts of Khyber Pakhtunkhwa and Gilgit-Baltistan commenced on August 6, 2010 with stipulated date of completion on March 18, 2011.
The auditor observed that the advertisement was neither placed on the United Nations Development Business (UNDB) website nor in international newspapers/magazines.However, audit officials noted that the copy of the press clipping of a national daily dated October 19, 2009 was provided, indicating the last date for submission of REOI as November 7, 2011, which was less than 30 days. The auditors also noted that the advertisement was also silent about the invitation of bids from national/international firms.
The auditors pointed out that the composition of the committee, which conducted technical evaluation, included the director general/directors of BISP and no specialist in the sector of the assignment was included in the evaluation committee; this was in violation of the guidelines for selection and employment of consultants under IDA by World Bank borrowers.
Also, no cost estimate for the three contracts was prepared by the management before the invitation of bids, which is violation of the World Bank guidelines for selection of consultants. The auditors pointed out that no provision was made in the contracts for submission of vouchers to BISP for the reimbursable cost. It was also pointed out that the total payment of Rs1.005 billion was made to RSPN without obtaining certificate/report from the Targeting Process Evaluation and Scoreboard Spot Check Evaluation consultants and date verification from the database.
The auditors observed that out of the total payment, an amount of Rs206.958 million pertained to cluster D (KP and GB), the system analyst of BISP vide note date 21.09.2011 reported 33 percent non-surveyed population and termed it alarming and indicative of form filling bias.
It was pointed out that fake forms were being sold in district Mansehra following which the chairman BISP granted approval to refer the case to FIA for investigation. It was also pointed out that the total payment of RSPN including payment of Rs340.633 million was made against bank guarantees, which is a violation as advance payments can only be made by the secretary/head of department to the government organisations only.
The management of the BISP in its reply to an objection raised by auditors stated that the EOI notice was uploaded to the UNDB online edition of the World Bank themselves.The technical evaluation committee was duly constituted in compliance with the World Bank’s guidelines and the DG who was entrusted the task was the most suitable technical person in the field.
The management of BISP replied to the objections of the auditors that advance payments were made by the secretary BISP who is head of the organisation as per BISP Act.It was also stated that BISP has retained 20 percent of the contract price, which will be released only on certification of third party validation.
However, the audit contends that BISP management could not substantiate the publication of the procurement opportunity through UNDB online with documentary evidence.The auditors suggested that responsibility may be fixed for the lapses, the payments already made to RSPN must be reviewed by the TPE and SPCE consultants and future payments be made after completing all the formalities. They also suggested that the advance payments of Rs340.633 million to M/s RSPN should get regularised from the Finance Division and status of investigation regarding sale of fake forms in district Mansehra should be made known.
The massive irregularity of over Rs1 billion was detected in the audit report of financial year 2011-12. According to audit report, the management of BISP awarded three contracts amounting to Rs1.70 billion for assignments titled “Nationwide Rollout of Poverty Scorecard for National Targeting System” under the project “Social Safety net Technical Assistance.
The contract to one company was given at Rs649.924 million covering 19 districts of Upper Punjab and AJK, which commenced on August 6, 2010 with stipulated date of completion on May 15, 2011.
Second cluster “C” amounting to Rs709.954 million covering 23 districts of Sindh was commenced on July 10, 2010 with stipulated date of completion on April 11, 2011.
Cluster “D” amounting to Rs345.792 million covering 21 districts of Khyber Pakhtunkhwa and Gilgit-Baltistan commenced on August 6, 2010 with stipulated date of completion on March 18, 2011.
The auditor observed that the advertisement was neither placed on the United Nations Development Business (UNDB) website nor in international newspapers/magazines.However, audit officials noted that the copy of the press clipping of a national daily dated October 19, 2009 was provided, indicating the last date for submission of REOI as November 7, 2011, which was less than 30 days. The auditors also noted that the advertisement was also silent about the invitation of bids from national/international firms.
The auditors pointed out that the composition of the committee, which conducted technical evaluation, included the director general/directors of BISP and no specialist in the sector of the assignment was included in the evaluation committee; this was in violation of the guidelines for selection and employment of consultants under IDA by World Bank borrowers.
Also, no cost estimate for the three contracts was prepared by the management before the invitation of bids, which is violation of the World Bank guidelines for selection of consultants. The auditors pointed out that no provision was made in the contracts for submission of vouchers to BISP for the reimbursable cost. It was also pointed out that the total payment of Rs1.005 billion was made to RSPN without obtaining certificate/report from the Targeting Process Evaluation and Scoreboard Spot Check Evaluation consultants and date verification from the database.
The auditors observed that out of the total payment, an amount of Rs206.958 million pertained to cluster D (KP and GB), the system analyst of BISP vide note date 21.09.2011 reported 33 percent non-surveyed population and termed it alarming and indicative of form filling bias.
It was pointed out that fake forms were being sold in district Mansehra following which the chairman BISP granted approval to refer the case to FIA for investigation. It was also pointed out that the total payment of RSPN including payment of Rs340.633 million was made against bank guarantees, which is a violation as advance payments can only be made by the secretary/head of department to the government organisations only.
The management of the BISP in its reply to an objection raised by auditors stated that the EOI notice was uploaded to the UNDB online edition of the World Bank themselves.The technical evaluation committee was duly constituted in compliance with the World Bank’s guidelines and the DG who was entrusted the task was the most suitable technical person in the field.
The management of BISP replied to the objections of the auditors that advance payments were made by the secretary BISP who is head of the organisation as per BISP Act.It was also stated that BISP has retained 20 percent of the contract price, which will be released only on certification of third party validation.
However, the audit contends that BISP management could not substantiate the publication of the procurement opportunity through UNDB online with documentary evidence.The auditors suggested that responsibility may be fixed for the lapses, the payments already made to RSPN must be reviewed by the TPE and SPCE consultants and future payments be made after completing all the formalities. They also suggested that the advance payments of Rs340.633 million to M/s RSPN should get regularised from the Finance Division and status of investigation regarding sale of fake forms in district Mansehra should be made known.
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