Finance minister vows to ensure ‘transparency’ in procuring vehicles for FBR

ISLAMABAD: Following apprehensions raised by the Senate Standing Committee on Finance and Revenue, Finance Minister Muhammad Aurangzeb on Friday vowed to ensure “transparency” in the procurement of 1,010 vehicles for the Federal Board of Revenue (FBR).

“Procuring vehicles for the FBR officials is an important requirement… They cannot just sit in offices and continue their work,” the minister said in response to a letter by Senate Standing Committee Chairman Senator Saleem Mandviwalla.

In a letter dated January 22, Senator Mandviwalla highlighted apprehensions regarding the procurement process, emphasising that the timing and scale of such an acquisition raised “considerable doubts about the transparency and integrity of the process” which needed further review.

The tax authority issued a letter of intent on January 13 for the Rs6 billion procurement. The first phase will see 500 vehicles delivered, with an advance payment of Rs3 billion already made.

The delivery schedule for the vehicles is planned in phases, beginning with 75 units in January, followed by 200 in February, and 225 in March. The second phase will include 250 vehicles in April and the final 260 in May.

Mandviwalla stated in the letter that committee members, during a recent meeting, pointed to the deliberate exclusion of competitors in the bidding process, raising suspicions of mismanagement and mala fide intent.

The procurement, estimated to be significant in scope and expense, has been criticised for compromising the principles of transparency and fairness — fundamental tenets of government procurement policies.

The letter requested that the purchase order issued to the Accountant General Pakistan Revenues (AGPR) should be cancelled and the payment should be halted.

Responding to the reservations, the finance minister said that the FBR officials would have to go to the field to improve tax collection.

Aurangzeb noted that all companies supplying vehicles were based in Pakistan, assuring that no company would be mistreated in the procurement process.