Rs. 20 Billion Airport E-Gate Contract Faces Major Allegations

Transparency International Pakistan has written to the Director General of the Pakistan Airports Authority, raising concerns over alleged violations of procurement rules in the award of the Rs. 20 billion e-gate project for major airports.

In a letter dated April 27, the organization said it had received a complaint alleging that the contract was awarded without open bidding and through what it described as a possible misuse of PPRA Rule 42(f).

According to the letter, the complainant alleged that the Pakistan Airports Authority awarded the contract to a preselected group without following open competition requirements under the Public Procurement Rules 2004.

The complaint further alleged that Rule 42(f), which applies to state-owned entities under specific conditions, was used despite the reported lack of in-house technology, expertise and resources needed to execute the project independently.

Transparency International Pakistan said that, on a prima facie basis, the allegations appeared to be valid and warned that the procurement could amount to mis-procurement under the relevant PPRA rules if the claims are established.

The letter also raised questions over the alleged non-availability of mandatory documents on the PPRA website, including the evaluation report and contract agreement. It further referred to alleged violations related to beneficial ownership disclosures, price reasonability checks and performance bond requirements.

Among the more serious claims, the complaint alleged that the contract was awarded at around 100% above market prices and suggested that penalties under integrity pact rules could apply if wrongdoing is proven.

Transparency International Pakistan urged the Airports Authority to examine the allegations and issue directions for the project to be tendered through open competition in line with procurement laws.

The watchdog clarified in the letter that it is not itself the complainant and is acting as a whistleblower under Article 19-A of the Constitution, which guarantees the public’s right to access information about the functioning of public authorities.

Copies of the letter were also sent to several senior officials and institutions, including the Prime Minister’s adviser, the Ministry of Defence, PPRA, NAB, FIA and the Supreme Court registrar, requesting action under their respective mandates.