ISLAMABAD: Transparency International Pakistan (TIP) has raised serious concerns over alleged violations of public procurement rules by Sui Northern Gas Pipelines Limited (SNGPL) in a recent tender, urging authorities to declare the process as “mis-procurement” and cancel the contract.
In a letter addressed to the Managing Director of the Public Procurement Regulatory Authority (PPRA), TIP highlighted irregularities in Tender No. SNC-1930/25 for the procurement of air intake filter elements and pre-filter stocks.
According to the complaint, bids were invited with a closing date of October 28, 2025. However, one of the participating firms was declared non-responsive on multiple grounds, including discrepancies in performance test documentation and alleged non-compliance with tender requirements. The firm subsequently challenged the decision before the Grievance Redressal Committee and later approached PPRA.
In its observations, PPRA indicated that the procurement appeared to be structured in a way that favored foreign bidders. TIP argued that such an approach raises serious legal concerns, as it effectively excludes domestic manufacturers—contrary to the Public Procurement Rules 2004 and government policies promoting local industry.
“Prima facie, the allegations seem correct,” TIP stated, noting that such actions may fall under Rule 50, which defines unauthorized breaches of procurement procedures as mis-procurement. It further pointed out that Rule 24 requires procuring agencies to ensure open competition and extend preference to domestic suppliers when competing with international firms.
TIP emphasized that policies such as SRO 827 mandate either a minimum 20 percent local value addition or a 15 percent price preference for domestic producers. By allegedly designing the tender to favor foreign suppliers, SNGPL may have violated these provisions, undermining efforts to strengthen local industry.
The watchdog also criticized PPRA for not formally declaring the case as mis-procurement despite identifying potential violations. It stressed that any breach should automatically trigger corrective action under the rules.
TIP has recommended that PPRA direct SNGPL to cancel the contract and restart the procurement process in full compliance with applicable laws. It also called for invoking Integrity Pact provisions, which may allow recovery of up to ten times the contract value in case of proven violations.
Additionally, TIP urged action against officials responsible for the alleged irregularities under relevant anti-corruption laws. The matter has been referred to key institutions, including the Prime Minister’s Office, Petroleum Division, National Accountability Bureau (NAB), and the Federal Investigation Agency (FIA), for further action.
Clarifying its position, TIP stated that it is not a direct complainant but a whistleblower advocating transparency under Article 19-A of the Constitution, which guarantees citizens the right to access information on public matters.
The case underscores growing concerns over transparency in public procurement and highlights the need for strict adherence to established rules to ensure fair competition and prevent corruption.
Story by Mushtaq Ghumman
