But the ministry, on the other hand, declined having issued any formal directives to the NA headquarters in this regard, and instead passed the buck on the Public Procurement Monitoring Office. The decision violates the existing Public Procurement Act.[break]
“The defense ministry obtained a letter from the Public Procurement Monitoring Office and sent it to the NA while asking the latter to abide by the Public Procurement Act and regulations,” said Defense Secretary Nabin Kumar Ghimire.
He argued that the ministry had received the suggestion from the monitoring office as per the NA request and passed the same to the NA.
As per the agreement with the manufacturers, each packet of biscuits would be obtained for Rs 10 and milk for Rs 311 per kg.
Only three years back, each packet of the same biscuits, produced by Pashupati Biscuits Company, cost Rs 5.55 and milk, produced by Hetauda Dairy, cost Rs 144. This means more than 100 percent hike. Interestingly, the price of Glucose Biscuit, which is produced by the same company, has not increased over three years. Both products are manufactured by Chaudhary Group.
The existing Public Procurement Act stipulates that goods worth more than Rs 1.5 million should be bought only through open bidding process.
Defending the allegations of violating the existing provisions, the NA has claimed that it was compelled to move ahead with the process under direct orders from the defense ministry led by Bidya Devi Bhandari and Bishnu Poudel.
The Army headquarters also stated that it had apprised the defense ministry that procuring the products without bidding would violate legal provisions.
The NA, however, claimed the Public Procurement Monitoring Office had suggested that the products could directly be purchased without any bidding process.
According to NA sources, the process moved forward during the tenure of former defense minister Bhandari and succeeding defense minister Poudel had ordered the NA to directly procure the products from the manufacturers.
Poudel declined to comment on the issue. "I don´t remember anything about it," he said.
Bhandari, on the other hand, claimed that she did not violate any regulations during her tenure. "Everything was procured through open competition during my tenure."
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