KP Probes Rs300M Contract Award to Debarred Firm

The Khyber Pakhtunkhwa Local Government Department has initiated an inquiry after a previously debarred company was awarded a contract valued at approximately Rs300 million for a street lighting project in Peshawar, as reported by The News.

Official records indicate that a total of 32 firms participated in the tender for the “Supply and Installation of Street Lights” project under the Peshawar City Metropolitan Corporation. Following the evaluation process, 31 bidders were disqualified on technical and financial grounds, leaving a single company that was declared responsive and subsequently awarded the contract.

Authorities noted that the selected firm had earlier been subjected to a one-year debarment by the Local Government Department. Despite this prior restriction, the firm was deemed eligible during the current procurement process, raising concerns regarding the transparency and integrity of the evaluation criteria.

Sources further revealed that competing bidders were rejected on grounds including insufficient bank balances, mismatched licence categories, and incomplete documentation.

Provincial Minister for Local Government Meena Khan Afridi has directed the Secretary Local Government to conduct a comprehensive review of the procurement process and investigate the circumstances surrounding the award.

Chief Minister Suhail Afridi stated that the inquiry would assess the reasons behind the disqualification of all other bidders and examine how the contract was ultimately awarded to a single firm.

Secretary Local Government Zafar-ul-Islam confirmed that a five-member committee has been constituted to investigate the matter and submit its findings within five days.

He added that the inquiry will also determine whether the firm’s debarment was still in force at the time of bidding or had been formally lifted prior to participation.