KP awards Rs300 million contract to firm under ban for one year, probe ordered

The Khyber Pakhtunkhwa Local Government Department has ordered an inquiry after a company previously debarred by the department was awarded a contract worth around Rs300 million for a street lighting project in Peshawar, The News reported. 

According to official documents, 32 companies participated in the tender for the “Supply and Installation of Street Lights” project of Peshawar City Metropolitan Corporation. Following the evaluation, 31 firms were disqualified on technical and financial grounds, while only one company was declared eligible and subsequently awarded the contract.

Officials said the selected firm had earlier been placed under a one-year debarment by the Local Government Department. Despite this, it was cleared in the current bidding process, raising concerns about the evaluation procedure.

Sources indicated that several competing firms were rejected over issues such as bank balance requirements, licence categories and incomplete documentation.

Provincial Minister for Local Government Meena Khan Afridi directed the Secretary Local Government to investigate the matter and review the entire tendering process.

Chief Minister Suhail Afridi said a detailed inquiry would determine how all other bidders were disqualified and why the contract was awarded to a single firm.

Secretary Local Government Zafar-ul-Islam confirmed that a five-member committee has been constituted to examine the case and submit its findings within five days.

He said the inquiry would also determine whether the firm’s debarment was still in effect or had been lifted at the time of the tender.