The Capital Development Authority (CDA) has found that misuse of its quotation system by its different wings has caused a loss of billions of rupees to the national exchequer.
Unlike the open bidding process, CDA’s quotation system allows it to perform emergency work without floating tenders. However, the quotation system has a limit of Rs. 500,000.
Different CDA wings carried out development work using the quotation system rather than an open bidding process over the last few years. The CDA initially believed that only Rs. 5 billion were spent on development work through the open bidding process.
However, further investigation revealed that CDA’s finance wing had released a whopping Rs. 20 billion under quotation system expenses in the last several years.
It is worth mentioning here that bidders are heavily scrutinized under the bidding process. Under the quotation system, they are not required to undergo any checks, which undermines the quality of the work done and raises its cost.
Previous Chairman CDA had also issued two warning letters – first in February 2021 and the second in April this year – directing the authority against carrying out work under the quotation system.
The incumbent Chairman had banned work under the quotation system and ordered an audit of three wings – Market and Road Maintenance; Machinery Pool Organization; and Environment Directorate – of the authority last month. A three-member committee consisting of the authority’s engineering wing is also providing technical support to the audit director.
Via: Dawn
