Business Recorder
ISLAMABAD: Transparency International Pakistan (TIP) has approached the Prime Minister’s Office (PMO) over alleged serious violations of the Public Procurement Regulatory Authority (PPRA) Rules 2004 in the award of a Rs 20 billion E-Gate project by the Pakistan Airports Authority (PAA), raising concerns of possible mis-procurement and misuse of public funds. In a letter addressed to the Prime Minister’s Advisor Dr Tauqeer Shah and other senior officials, TIP stated that the complaint alleges the contract was awarded without open competitive bidding and instead processed under PPRA Rule 42(f), which allows procurement through state-owned entities (SOEs) under specific conditions. According to the complainant, the rule has been misapplied as the executing entity reportedly lacked the in-house technology, expertise, and capacity to independently deliver the E-Gate system—technology which, it is claimed, is not available with any SOE. READ MORE: Infrastructure modernization: PAA launches e-gates implementation project across three airports Under PPRA Rule 42(f), procurement through SOEs is only allowed if the entity executes the project entirely through its own resources without involving private sector partners, joint ventures, or subcontractors. The complaint alleges that this condition has been violated, potentially rendering the procurement non-compliant. It further stated that where more than one eligible SOE exists, PPRA rules require limited competition among them through transparent notifications, along with price reasonability checks. These procedural safeguards, the complainant says, were not properly followed. The complaint also highlighted that mandatory disclosures under PPRA Rules 35 and 47—such as the evaluation report and contract agreement—are missing from the PPRA website, in violation of transparency requirements that mandate public access to procurement documents. Additional concerns raised include: (i) non-disclosure of beneficial ownership information required under PPRA and SECP regulations;(ii) absence of a 10% performance bond guarantee, estimated at around Rs 2 billion;(iii) alleged award of contract at nearly 100 percent above prevailing market rates; and (iv) failure to comply with integrity pact provisions, which could lead to penalties up to 10 times the alleged loss (claimed at Rs 100 billion). The complainant also questioned why earlier tenders for the E-Gate project were cancelled twice before the final award. In its preliminary assessment, TIP stated that the allegations “prima facie appear to be correct,” pointing to potential violations of PPRA Rules 35, 42, and 47. It observed that the procurement may constitute “mis-procurement” under Rule 50. The organisation further noted that reliance on Rule 42(f) appears questionable given the reported lack of in-house capability of the executing firm, suggesting possible circumvention of procurement safeguards designed to prevent subcontracting and ensure transparency. TIP urged PAA to clarify the repeated cancellation of earlier tenders and to explain compliance with procurement and accountability frameworks, including provisions of the National Accountability Ordinance (NAO) 1999. It recommended that the PAA Director General initiate a formal inquiry into the matter and ensure that the project is retendered through open competitive bidding in accordance with PPRA rules to avoid potential mis-procurement and safeguard public funds. Copyright Business Recorder, 2026
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