Monitoring Report
ISLAMABAD:
The Oil and Gas Development Company Limited (OGDCL) is all set to award $ 85 million-dollar worth UCH Front End Compression Facility Project to a ‘favourite’ firm against the recommendations of its Audit Department.
According to a spokesman of OGDCL, the contract is being awarded on the basis of most advantageous bid from technical and financial perspectives. And, the procurement process has been concluded strictly in accordance with PPRA (Public Procurement Regulatory Authority) framework and the company’s procurement manual.
Interestingly, former General Manger (GM) OGDCL Imran Shoukat, through a WhatsApp text message sent in a WhatsApp Group named as OGDCL YOUNG GOLDIES, has already informed the group members that present Managing Director (MD), Syed Khalid Siraj Subhani will award the tender for UCH Front End Compression Facility Project to the favourite firm before leaving office of MD OGDCL, said sources.
They added that audit department of OGDCL has already recommended to cancel the tender as the tender criteria is tailor made and the competition among only two bidders is not healthy while both bidders are supplying the equipment of a single manufacturer despite different vendors are available in the market.
It is relevant to note that the government had approved appointment of Zahid Mir as MD OGDCL during the last week and due to this incumbent MD OGDCL Syed Khalid Siraj Subhani will surrender the top lucrative slot of seat of OGDCL after issuing a notification in this regard.
According to sources, former GM OGDCL in an alleged connivance with the officials of OGDCL has been trying hard to ensure the award of $ 85 million-dollar worth UCH Front End Compression Facility Project to a favourite firm despite the opposition of Audit Department. They said that only two bidders including M/s Presson Descon Int, (Pvt.) Ltd. (PDIL) in a joint venture (JV) with Sui Northern Gas Pipelines Ltd. (SNGPL) and M/s Hong Kong HulHua Global Tech. Ltd in a joint venture with a local company named as AJ Corporation have participated in the bidding process for UCH Front End Compression Facility Project. However, OGDCL’s audit department has raised serious questions over the bidding process and recommended to cancel the tender process called for the award of UCH Front End Compression Facility Project owing to absence of healthy competition, incomplete bidding documents and violation of the PPRA rules etc., said sources.
It is also learnt from sources that a multi-national vendor had raised serious concerns regarding the method of award of contract for $ 85 million-dollar worth UCH Front End Compression Facility Project and said that OGDCL was following a suspicious method for the procurement which has been causing billion rupees worth hefty loss to the national exchequer annually. The annoyed multi-national vender, in its complaint, had also declared that there will be 20-30 percent saving in the cost of this $ 85 million-dollar worth UCH Front End Compression Facility Project if the OGDCL adopts a transparent method for the award of contract while it is strange that the bidding competition policy of such a big state-owned exploration and Production giant (OGDCL) between only the two bidders has been causing loss to the country’s national exchequer, the sources added.
Sources said that the international vendor has also raised its concerns regarding the award of a contract worth more than $ 85 million-dollar UCH Front End Compression Facility Project and informed the OGDCL about its reservations in this regard.
The tender for $ 85 million-dollar worth UCH Front End Compression Facility Project was prepared to benefit an industrialist while the bid documents of the two bidders who were participating the bidding process was the same, they added.
According to a spokesman of OGDCL, as a matter of standard practice all procurement cases involving Rs. 50 million or above are sent for pre audit and no exception was made in the instant case. Internal Audit is under an obligation to review the file, seek clarifications and offer comments. Thereafter the concerned department and the Supply Chain Management address the queries or take remedial action, if required.
The OGDCL spokesman also said that Head of Internal Audit reports to the Board Audit Committee in the discharge of his functions and operates independently in the performance of his duties as per laid down mandate and standards. The processing of case within different sections of the company is purely an internal work flow arrangement. The fundamental question is that whether or not applicable process and procedures have been followed in letter and spirit. As already confirmed, determination of successful bidder in this case was finalized without any deviation.
As per evaluation uploaded on company website, consortium comprising SNGPL and PDIL has emerged as technically qualified and financially lowest, said OGDCL spokesman.
