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Cabinet flouts Procurement Act

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KATHMANDU, Nov 21: In a blatant violation of Public Procurement Act-2007, the cabinet has allowed three ministries to purchase new vehicles for their ministers without going through competitive bidding process.



It has been disclosed that the present cabinet allowed three ministries -- Ministry of Home Affairs (MoHA), Ministry of Irrigation (MoI) and Ministry of Science and Technology (MoST) -- to procure new vehicles nearly seven months ago sidestepping the law. All three vehicles purchased are sports utility vehicles.[break]



The Public Procurement Act clearly stipulates that competitive bidding is mandatory for any procurement exceeding Rs 1 million. The Act also says that closed but internal bidding is required for any procurement exceeding Rs 150,000.



According to a knowledgeable government source, cabinet meeting gave a green signal for the procurement of vehicles following massive pressure, especially, from Home Minister Bhim Rawal.



"Initially the Prime Minister´s Office (PMO) rejected various proposals submitted at the PMO by half a dozen ministers seeking approval for purchase of vehicles without open bidding," the source said. "The PMO, however, succumbed to the pressure from home minister."



According to the source, the cabinet had categorically asked the three ministries not to spend more than Rs 5 million each while procuring new vehicles even if they planned to avoid competitive bidding. They were also instructed to follow internal bidding for the purchases.



  • Three ministers spent Rs 20 million in vehicles purchase

  • PMO allowed three ministers to purchase vehicle without competitive bidding

  • Home Minister Rawal spent Rs 3.7 million more money going beyond cabinet decision



It has been revealed that Home Minister Rawal spent Rs 8.7 million to procure a Mitsubishi Pajero, while Irrigation Minister Bal Krishna Khand and State Minister for Science and Technology Indra Prasad Dhungel spent Rs 5.5 million each for their vehicles.



"Rawal´s spent Rs 3.7 million more than what was allowed by the cabinet," the source informed Republica, adding "He also ignored the objection by the Ministry of Finance (MoF)."



Initially, the MoF had rejected Home Ministry´s request to release Rs 8.7 million to procure new vehicle for the home minister. "The MoF finally released the amount sought by Home Ministry after Rawal pressed Finance Minister Surendra Pandey through the prime minister," the source added.



The source also disclosed that, Rawal had initially confirmed to procure a vehicle worth of Rs 11.5 million. "He changed his decision after MoHA officials refused to sign the document," the source said.



Rawal, however, followed internal bidding process and asked the local dealers of Nissan, Mitsubishi, and Toyota to furnish specifications of their vehicles. The Home Ministry had finally procured a Mitsubishi Pajero for Rs 8.7 million.



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