ISLAMABAD : The Public Accounts Committee (PAC) has ordered inquiry against WAPDA officials for extending undue to favour to M/s Bank Alfalah for investment of Rs 10 billion without fulfilling the evaluation criteria.
Official documents available with Newzshewz reveal that during audit of accounts of the GM (Finance) Power, (WAPDA) for the period from July, 2022 to June, 2023, it was observed that an amount of Rs. 10 billion was invested with Bank Alfalah at a profit rate of 17.11% per annum on December 19, 2022. Further scrutiny of record revealed that the said bank quoted profit/rate without allowing premature encashment after six months without penalty.
As per RFP & evaluation criteria of bid, the banks were required to quote profit rate with a special term of ‘pre-mature encashment after six months without penalty’ but bid of the said bank was accepted without this condition. Audit held that investment of funds with Bank Alfalah without fulfilling the evaluation criteria was irregular and undue favour to the bank.
On March 21, 2025 DAC directed the management to inquire into the matter at Ministry level. The inquiry committee shall include a member from the Finance Division.
The management replied that WAPDA management developed the RFP requiring banks to quote profit rate for one year’s investment in TDR and simultaneously allowing WAPDA to pre-mature encash the TDR after six months on need basis with the perspective to enable WAPDA to meet any emergent working and development funds requirements of its national importance development projects like Dasu, Mohmand and Bhasha Dams etc. Banks were quoting rate for one year TDR and not for the period of six months. The placement of funds of Rs. 10 billion @17.11% with Bank Alfalah Ltd. was made after due competition and with approval of WAPDA Power Wing Investment Board.
The rate comparison is follows (i) Bank Alfalah Ltd- 17.11 per cent ;(ii) The Bank of Punjab- 17.01 per cent ;(iii) Allied Bank Ltd-16.05 per cent;(iv) Bank AL Habib Ltd – 15.50 per cent ; and (v) Askari Bank Ltd- 15 per cent As such, no undue favor was given to any bank rather a fair process with due competition was adopted which resulted in saving the potential loss @ 1.06% (17.11%- 16.05%).
After deliberations the PAC endorsed the decision of the DAC held on March 21, 2025 and directed the PAO to hold inquiry at Ministry level within one month and report to PAC / Audit.
Ends
