ISLAMABAD: Public Procurement Regulatory Authority (PPRA) board has granted exemption from applicability of PPRA rules to Pakistan National Shipping Corporation (PNSC) for the procurement of two secondhand vessels, it was learnt on Monday.
According to sources, PNSC asked the PPRA to allow it in the national interest to procure the secondhand/used vessels, crafts, ships and associated equipment/machinery through negotiated tendering under rule 42(d)(ii) of Public Procurement Rules, 2004. And, PPRA board has decided to recommend exemption under Section 21 of the PPRA Ordinance, 2002 from applicability of Public Procurement Rules, 2004 for the procurement of two secondhand vessels by PNSC to the federal government. Not only this, but the PPRA board further decided that PNSC shall forward a case through its line ministry (Maritime Affairs) for the insertion of a new rule defining mechanism for carrying out procurement of secondhand vessels in the future so that no one can question the PNSC in the future, said sources.
Earlier, the Pakistan National Shipping Corporation (PNSC) entered into a contract with Shell Singapore to buy two old ships for the import of petroleum products and crude oil from the world market, they added.
As per sources, under the contract, one vessel worth crores of rupees has so far been purchased by PNSC while one more vessel is yet to be purchased. They said that the matter pertains to the procurement of secondhand/used vessels came to the knowledge of the Prime Minister’s Inspection Commission, and the Commission started an investigation into the purchase of old vessels against the laws. They said according to the country’s laws, Pakistan National Shipping Corporation (PNSC) was not authorized to buy old ships. However, as soon as the Commission initiated the proceedings, PNSC promptly approached PPRA, seeking an exemption from the applicability of Public Procurement Regulatory Authority (PPRA) rules to avoid potential legal repercussions, said the sources.
It remains to be seen what actions the PM Inspection Commission will take to protect the national treasury and address illegal activities, sources added.
According to available documents, currently, PNSC has 12 vessels in its fleet and it (PNSC) is the only flag carrier which can bring commodities like crude oil etc from abroad in case of war and emergency. About 95percent of Pakistan’s trade by volume carried by sea for which Pakistan paying about $7 billion annually as freight charges to foreign shipping lines, and this number is growing annually. Brand new vessels cost around US$ 3.457 million while Pakistan has to pay around $7 billion to shipping lines in the absence of owned vessels, said documents.
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