Cabinet Division takes notice of honoraria paid to PPRA officials from WB loan

ISLAMABAD: In a show of extreme apathy and indifference towards the economic woes of the country, Public Procurement Regulatory Authority (PPRA) touched new lows by distributing millions of rupees from a World Bank loan as honoraria to its officials.

PPRA is presently under focus of the PM’s Office and the Cabinet Division for not only allegedly misusing World Bank loan to serve its own officials but also faces serious allegations of corruption against its officials in procurement cases causing loss of billions of rupees to public kitty and committing fraud, tampering, bogus documentation, blackmailing etc. These allegations, however, have not yet been investigated. It is said that there are two sets of officials in PPRA. One, those who received honoraria, and second, who did not receive honoraria. This fight between these two groups, it is said, has resulted in approaching the PM’s Office with allegations of serious level against each other. Independent sources said that the issues concerning PPRA need a high-level probe as the allegations which are reflected in the documents of the PM’s Office and the Cabinet Division are too serious to be ignored.

It is said that dozens of PPRA officials were given honoraria, equal to four salaries in one year, for three years out of the World Bank loan for e-Procurement Project (EPADS).

Regarding honoraria received by PPRA officials, the Cabinet Secretary Kamran Ali Afzal wrote to the MD PPRA on June 7, 2024. The letter conveyed, “It has been recently brought to my notice that PPRA employees, including former Managing Director of the Authority, have been receiving significant sums as honorarium from the loan taken from the World Bank to fund the EPADS project run by PPRA.”

The Cabinet secretary added, “Apparently, honorarium was permissible only for personnel recruited under the EPADS project. However, the PPRA management gave additional assignments in the project to mainstream PPRA employees and used this as a pretext to also grant honoraria to these employees. What makes this practice even worse is that former Managing Directors, as the record placed before me shows, have been sanctioning quarterly honoraria for themselves under their own hand! Apparently neither was any permission sought from the PPRA Board, nor was the Board informed.” “I would, therefore, advise you to please look into this matter immediately and seek guidance of the PPRA Board, including on any recoveries of unauthorized grant of honoraria that may need to be made,” said the secretary cabinet. Meanwhile, the Prime Minister’s Office also received multiple complaints against PPRA and referred the matter to the Cabinet Division for necessary action.

On 25th July, the Cabinet Division again approached PPRA to convey the PM Office’s concern relating to the allegation of corruption, misuse of authority, favouritism and nepotism against some of the PPRA officers.

The cabinet letter summarised these allegations as: a) PPRA’s Grievance Redressal Committee (GRC) has been deciding all irregular procurement cases in favor of the contractors thereby causing billions of rupees loss to the public exchequer. These cases mostly pertain to NHA, PakPWD, Power & Energy Sector, and Utility Stores Corporation. b) Officers and officials of PPRA are involved in financial and moral corruption. c) They commit fraud, tampering, bogus documentation, black mailing, terrorist activities, possess criminal and dishonest mindset and are mostly involved in moral and administrative turpitude. d) The most prominent of PPRA officers mentioned in numerous complaints include … (the cabinet letter contains 10 names which are not being published by the newspaper). e) PPRA blatantly misuses the World Bank loan money (EPADS) for undue honoraria etc. The Cabinet Division asked the MD PPRA to place the above matters before the PPRA Board for its consideration and directions and the outcome of which be shared with the Cabinet Division for onward transmission to the PM’s Office.