Concerns raised over alleged irregularities in Rs20bn airport e-gates project

Concerns Raised Over Alleged Irregularities In Rs20bn Airport E Gates Project

ISLAMABAD – The allegations of procurement irregularities have surfaced in the award of a Rs20 billion e-gates project at major airports, with concerns raised over compliance with public procurement rules.

In a letter dated April 27, Transparency International Pakistan informed the Director General of the Pakistan Airports Authority that it had received a complaint alleging that the contract was awarded without open competitive bidding.

According to the complaint cited in the letter, the project was allegedly awarded to a preselected group through the possible misuse of Rule 42(f) of the Public Procurement Rules 2004, which allows certain exemptions under specific conditions.

The complaint also questioned the application of the rule, claiming that the authority lacked the in-house technical capacity, expertise and resources required for the project’s execution.

Transparency International Pakistan stated that, on a prima facie basis, the allegations warrant examination and could constitute mis-procurement if proven under relevant rules.

The letter further pointed to the alleged absence of key procurement documents on the Public Procurement Regulatory Authority (PPRA) website, including evaluation reports and contract agreements. It also raised concerns regarding beneficial ownership disclosures, price reasonability assessments and performance security requirements.

The complaint alleged that the contract value was significantly higher than market estimates, claiming an overpricing of around 100 per cent.

Transparency International Pakistan urged the Pakistan Airports Authority to review the matter and ensure that any further procurement related to the project is conducted through open competitive bidding in line with applicable laws.

It clarified that it is acting as a whistleblower under Article 19-A of the Constitution, which guarantees the right to information.

The copies of the letter have been sent to relevant authorities, including the Prime Minister’s Office, Ministry of Defence, PPRA, NAB, FIA and the Supreme Court registrar, requesting action under their respective mandates.

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