Off The Record [Shaikh Rasheed and Transparency International Pakistan] 26th October 2010 part 1

Rs 300 billion corruption but NAB fails to respond
The News
October 26,2010
ISLAMABAD: On the eve of a new global report on corruption, the Transparency International Pakistan has claimed that the TIP alone has identified corruption cases worth Rs 300 billion in different federal government departments during one year.
Talking to The News Chairman TIP Adil Gilani lamented that the government did not show any interest in probing these cases of corruption. He, however, said that it was only the Supreme Court of Pakistan, the Public Accounts Committee of the National Assembly and the PPRA, which took notice of some of these corruption cases. He explained that generally the identified corruption cases involved violation of the Public Procurement Regulatory Authority (PPRA) Rules of 2004. The Transparency International is releasing its report on Tuesday at 2 pm amid indications that Pakistan is all set to hit further lows amongst the world's most corrupt nations. The 2009 report showed Pakistan climbing five numbers from the previous 47 to become the 42nd most corrupt country in the world. Gilani expressed his disappointment that there was no effective accountability apparatus presently operational in Pakistan due to which corruption was on the rise. He explained that the TIP referred a number of corruption cases to the NAB but it did not proceed even in one single case.
Amongst the mega corruption cases, he said the Rental Power Projects of the government, presently under the scrutiny of the Supreme Court of Pakistan, was on the top. He claimed that under the Rental Power Projects, the government awarded 14 contracts in violation of the PPRA rules as also stated in the ADB report, causing a loss of over US$ 2 billion. He said that the TIP had also written to the apex court on this case of massive corruption and irregularity.
He said that the TIP also wrote to different authorities about corruption in Pakistan Steel, whose sale policy and procurement had caused reported loss of Rs 22 billion. This corruption case, though ignored by the government, had taken been up by the Supreme Court of Pakistan.
Gilani also talked of the alleged violation of Pubic Procurement Rules 2004 by Pakistan Railways in the tender for procurement of 150 locomotives, only US made, which might have caused a loss of at least Rs 40 billion to the national exchequer. The project, he said, is presently on hold.
Regarding the OGDCL, which made headlines in the recent past when Prime Minister Gilani appointed his jail mate and a convict who was not even a graduate as its managing director, Gilani said that the TI had also reported to the government authorities about the purchase of compressors for $30 million for Qadirpur Gas Field without inviting public tenders from M/s Valerus, which is a violation of the Public Procurement Rules 2004. He said the TIP also reported another violation of the Public Procurement Rules 2004 in tender for supply of rental drilling rigs costing the Government of Pakistan Rs 3 billion per year. He added that the Trading Corporation of Pakistan awarded contracts at exorbitant rates to cartels of Stevedores and Transporters in 2009, wheat and fertiliser, causing loss of over Rs2 billion.
Regarding the Trade Development Authority of Pakistan (TDAP), he said, it saved a claim of US $2.2 million for extra/additional work to the contractor of Expo 2010-Shagnahi, China, which was also supported by the Ambassador of Pakistan in China. On TIP objections, he said, the TDAP rejected the claim.

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• Shaikh Rasheed