A shocking revelation has emerged from Islamabad Electric Supply Company (IESCO) regarding its procurement process for Tender Nos. PMU/GOODS/NCB: 156, 157, and 158, aimed at acquiring 132 KV Steel Tubular Poles and allied accessories. The IESCO Grievance Redressal Committee (GRC) has confirmed serious irregularities and fraudulent practices that have raised significant concerns about transparency and accountability within IESCO.
In a two-stage envelope assessment, M/S Eagle Cables Pvt.Ltd. submitted proposals for the aforementioned tenders. IESCO Technical Evaluation Committee, led by Mr. Rajesh Kumar, evaluated the submissions and recommended M/S Al-Hussain Traders for the contract. However, a critical turn of events occurred when disclosed that manufacturer of Al-Hussain namely M/s Green Power did not exist in China, casting serious doubt on their legitimacy.
In response to these alarming findings, M/S Eagle Cables filed a formal grievance with the IESCO GRC. The committee, constituted via office order No: 21662-71 dated 07 August 2024, conducted various meetings and hearings, granting both parties—M/S Eagle Cables Pvt. Ltd. and M/S Al-HussainTraders—a fair opportunity to present their cases. Written clarifications were also sought from the Chief Engineer regarding the Technical Evaluation Reports (TER). After thorough deliberation, the GRC accepted Eagle Cables’ grievances and confirmed that Al-Hussain was engaged in fraudulent activities throughout the tender process.
Despite the GRC’s endorsement of these findings, IESCO’s response has been troubling. Instead of taking appropriate action against Al-Hussain Traders for the confirmed fraud, IESCO opted to scrap the original tenders altogether. This lack of accountability raises serious questions about the agency’s commitment to addressing fraud within its procurement processes.
In a controversial move, IESCO subsequently issued new re-tenders for the same project. Alarmingly, Mr Rajesh Kumaronce again recommended M/s Al-Hussain Traders technically responsive, albeit under different pretences.
Instead of initiating blacklisting process against M/s Al-Hussain Traders for his forgery and misrepresentation, IESCO, crossing the legal-line is proceeding further to do business with them.
This situation unfolds under the auspices of the Public Procurement Regulatory Authority (PPRA) Rule 48, which outlines grievance handling in public procurement. The GRC’s findings underscore significant ethical violations and a potential lack of accountability from IESCO, which may have ramifications for its operational legitimacy.
The findings of the Grievance Redressal Committee raise pressing questions about the oversight mechanisms within IESCO and the need for stricter enforcement of procurement regulations. Stakeholders are calling for transparency and accountability in public procurement to ensure fair competition and to deter fraudulent practices that undermine the integrity of governmental processes.
As this situation continues to unfold, it serves as a stark reminder of the critical importance of integrity and accountability in public procurement. The revelations regarding IESCO and its dealings with Al-Hussain Traders call for immediate attention and corrective action to restore public trust in the agency’s procurement practices.
