ISLAMABAD : The Auditor General of Pakistan (AGP) has accused State Bank of Pakistan (SBP) of inflicting financial loss of Rs 45 million to the national exchequer by hiring the services of M/s Bloomberg in violation of PPRA Rules.
The AGP, in its audit report of 2023-24 has pointed out that Rule 4 of PPRA, 2004 states that procuring agencies, while engaging in procurement, shall ensure that the procurements are conducted in a fair and transparent manner, the object of procurement brings value for money to the agency and the procurement process is efficient and economical .
Rule 20 of PPRA states that, the procuring agencies shall use open competitive bidding as the principal method of procurement of goods, services and works.
During audit of SBP, Banking Services Corporation (SBP, BSC) H.O for the year 2021-22, it was observed that the management obtained services from M/s Bloomberg Index Services Ltd. by signing an agreement in 2004 without any competitive bidding in violation of PPRA rules, which was still continued.
Audit is of the view that hiring of services of Bloomberg without tender and for such lengthy period was not justified. Thus payment of Rs 45 million is held irregular.
According to the audit report, the matter was reported to the management in June 2023, which in its reply stated that contract with Bloomberg was of long-term nature as it was one of the top services provider, hence, its replacement was not easy.
The Audit is of the view that Management’s reply was tenable as procurement of services was in violation of Public Procurement Rules.
The Audit has recommended that Management may fix the responsibility on the person(s) at fault.
Ends
