PMDC under scrutiny: Major irregularities uncovered in contract award to M/s Chiniot Safety

By Naveed Siddiqui
ISLAMABAD: A damning revelation has emerged from an audit conducted on the Pakistan Mineral Development Corporation (PMDC), exposing significant irregularities in the awarding of a lucrative contract to M/s Chiniot Safety, totaling Rs 330,745,032. The audit’s findings paint a disturbing picture of potential breaches in procurement regulations and glaring lapses in oversight within PMDC’s management structure.
The audit unearthed a troubling pattern of deviation from established procurement norms, notably exemplified by the awarding of a contract initially slated for a one-year term, which was abruptly truncated to six months—a direct contravention of stipulated guidelines under the Public Procurement Regulatory Authority (PPRA) rules.
Foremost among the audit’s findings was the disconcerting trend of PMDC persisting with M/s Chiniot Safety as the preferred contractor, despite documented instances of supply disruptions and substantial revenue losses incurred by PMDC in prior engagements. This failure to exercise due diligence in assessing the bidder’s track record raises serious questions about the integrity of the procurement process and the prioritization of fiscal prudence.
Moreover, the audit spotlighted a glaring omission in the evaluation process, where the financial risks associated with M/s Chiniot Safety were not adequately factored into the decision-making matrix. This oversight potentially resulted in an inflated unit price, skewing the competitiveness of the bid compared to other contenders.
Compounding these irregularities, M/s Chiniot Safety purportedly defaulted on its contractual obligations by consistently delivering substandard quantities of explosives—a critical lapse that undermines the fundamental principles of contractual accountability and delivery reliability. Furthermore, the audit called into question the veracity of security deposits totaling Rs 16,537,252, highlighting deficiencies in financial oversight and accountability mechanisms.
In light of these damning revelations, the audit’s recommendations underscore the imperative for a comprehensive investigation to elucidate the extent of the irregularities and hold accountable those responsible. Urgent remedial measures are imperative to restore confidence in PMDC’s procurement processes and mitigate the risk of recurrence. The glaring absence of any response from implicated parties underscores the pressing need for decisive action to rectify systemic deficiencies and safeguard the integrity of future procurement endeavors