Punjab governor orders probe into ‘irregularities’ in University of Sahiwal construction contract
SAHIWAL: Punjab Governor/Chancelllor Sardar Saleem Hyder Khan has taken notice of the reversal, rollback and annulment of a Rs1.5 billion tender for development at the University of Sahiwal (UOS).
The tender, which had been approved and posted on the Punjab Procurement Regulatory Authority (PPRA) website after observing all procedural formalities in 2022, was ‘abruptly’ canceled.
The governor sought record for the reversal and rollback of the tender regarding university’s infrastructural development.
Reports indicate that on Dec 27, 2022, the university officials canceled the construction tender initially awarded to M/s Indigo Developers (PVT) Limited, Lahore. The contract was later divided into three sub-contracts (Lot 1, Lot 2, and Lot 3) and re-awarded on March 15, 2023, to M/s STC Engineering & Contractors (PVT) Limited, Sahiwal.
‘Abrupt’ cancellation of tender sparks off controversy
According to the PPRA portal, the initial tender was awarded to Indigo and later reassigned to STC. Indigo CEO Fazeel Ahmed claimed the cancellation was “illegal” and violated PPRA rules, alleging ulterior motives behind the decision.
On Oct 19, 2022, UOS sought bids under PPRA Punjab Rules-2014 from registered C1 category firms for Rs1,100 million in development work. The technical and financial bids submitted by various firms were opened and evaluated in the presence of firm representatives until Nov 21, 2022. M/s Indigo Developers, Lahore, was awarded the contract for offering the “lowest bid” on Nov 22, 2022.
VC Dr Javed Akhter approved the evaluation under PPRA Rules 38 (2)(a)(VIII), and the bid was uploaded on the PPRA website on Nov 29, 2022. Firm is directed to deposit Rs25 million for the issuance of the work order within 10 days.
Documents seen by Dawn show 10-member Technical Evaluation Committee awarded 77.78 marks to Indigo, Lahore, while STC, Sahiwal, received 50.25 marks, and M/s Capital Builders, Islamabad, was rejected under Clause 1.4 of TORs.
The committee members signed the evaluation report. Indigo was given 10 days for the issuance of the work order, ending on Dec 9, but the firm was not provided the work order. On Dec 23, Indigo wrote a letter to the planning and development director, demanding the issuance of a “letter of acceptance” but the university did not issue work order.
To their surprise, VC Dr Javed Akhter wrote a letter to Indigo with reference No. DCS/COORD/UOS/2022/1219, claiming that the firm had been awarded marks wrongly by the evaluation committee.
The tender was subsequently canceled under PPRA Rule 35(1), which Indigo claimed was a clear violation of Rules 36 and 38(a)(vi)(VIII).
The canceled tender was later re-tendered, split into three lots, and awarded to STC Engineering & Contractors, which had been disqualified during the original bidding process.
A document titled “Report on the Tendering Process” obtained by Dawn shows that objections raised by Capital Builders, Islamabad - another disqualified bidder - were accepted, leading to a re-evaluation of Indigo’s marks. This process ultimately facilitated STC’s qualification for the project. The document also justified splitting the tender into three lots to “ensure transparency and avoid reliance on a single contractor.” However, all three lots were eventually awarded to STC.
The Indigo’s CEO stated they did not participate in the subsequent bidding, citing a lack of trust in the process.
When contacted, UOS Media Spokesperson Dr. Ayub defended the university’s actions, claiming that all tenders were awarded under PPRA Rules and that the Higher Education Department (HED) monitored the projects regularly. He dismissed allegations of misconduct as “false propaganda.”
Sources said last week VC Dr. Javed Akhter appointed a new Project Director, Dr. Muhammad Masood, to expedite the development work.
Published in Dawn, November 19th, 2024