TIP for abolition of Rs118b contract of Pakistan Post with private bank

Pakistan Observer

Transparency International Pakistan (TIP) has demanded the cancellation of contract worth Rs. 118 billion awarded to a private bank by Pakistan Post department in violation of PPRA rules.
Documents available with Pakistan Observer revealed on Thursday. As per details TIP received a complaint on the allegation of violation of PPRA Rules in award of unsolicited contract to a private bank for the digitalization of Financial services with an investment portfolio of Rs. 118 billion spanning a period of 20 years.
A letter written by the TIP to chairman NAB, It was revealed that Pakistan post has awarded a 20 years unsolicited contract to the bank, for digitalization of Financial Services with an investment portfolio of Rs. 118 billion.
No public tenders were invited by Pakistan Post for this Project which is violation of Public Procurement Rules 2004. The bank will provide investment in form of technology, infrastructure and capacity enhancement to the Pakistan Post Office Department, with the objective of enabling technology based and regulatory compliant digital, financial services in far flung areas of Pakistan and to help propel Pakistan Post into ta modern logistic company in the long run.
Pakistan Post Office Department will provide branch-less banking services to its customers using HBL Konnect , the bank branch less banking platform as selected locations across Pakistan Post network, HBL will also place automated Teller Machines (ATM) and Cash Deposit Machines to further support customers and enhance the digital financial service capabilities available at Pakistan Post Locations.
HBL will assist to distribute pension of federal government by the Pakistan Post Office Department through HBL Konnect, the bank’s branch less banking platform which is about Rs. 465 billion annually.
If ten days pension circulates through HBL, at 6 percent profit rate, it will get an annual income to HBL of Rs. About 116 million which will be about Rs. 2 billion in 20 years contract period.
The evaluation report required under rule 35 and contract Document under Rule No-47 are also not posted on PPRA website, Rule 47, Public Access and transparency. As soon as a contract has been awarded the procuring agency shall make all documents related to the evaluation of the bid and ward of contract public.
This complaint requires detailed inquiry on the correctness of the allegations of the award of unsolicited contract to HBL. This is mention of investment portfolio of Rs. 118 billion in this project and according to PPRA rule No-7 signing of integrity Pact is mandatory.
If these allegations are proved to be correct action may be taken to cancel the contract as such contract may be declared as mis procurement under PPRA Rule 50. Public tenders may be invited under PPRA rules to allow all banks to participate in the bidding process.

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