Updated: Monday April 28, 2014/AlEthnien
Jamada El Thaniah 28, 1435/Somavara
Vaisakha 08, 1936, at 09:00:07 AM
[1][1]The
(Act VIII of 2009)
[17 November 2009]
An Act to provide for the
establishment of the
Procurement
Regulatory Authority in the
Whereas
it is expedient to provide for the establishment of the Procurement Regulatory
Authority for regulating procurement of goods, services and works in the public
sector and for matters connected therewith;
It is hereby enacted as follows:---
(2) It
extends to the whole of the
(3) It
shall come into force at once.
(a) “Authority” means the Punjab Procurement
Regulatory Authority established under section 3;
(b) “Board” means the Board of Management
constituted under section 6;
(c) “Chairperson” means the Chairperson of the
Board;
(d) “corrupt
and fraudulent practices” includes the offering, giving, receiving, or
soliciting of any thing of value to influence the action of a public official
or the supplier or contractor in the procurement process or in contract
execution to the detriment of the procuring agencies; or misrepresentation or
omission of facts in order to influence a procurement process or the execution
of a contract, collusive practices among bidders (prior to or after bid
submission) designed to establish bid prices at artificial, non-competitive
levels and to deprive the procuring agencies of the benefits of free and open
competition, to harm or threaten to harm persons or their property to influence
procurement proceeding or affect the execution of a contract and any request
for, or solicitation of any thing of value by any public official in the course
of the exercise of his duty;
(e) “Fund” means the Public Procurement Fund;
(f) “goods”
means articles and objects of every kind and description including raw
materials, products, equipment, machinery, spares and commodities in any form
and includes services incidental to installation, transport, maintenance and
similar obligations related to the supply of goods if the value of these
services does not exceed the value of such goods;
(g) “Government” means the Government of the
(h) “Managing
Director” means the Managing Director of the Board;
(i) “Member” means a
member of the Board;
(j) “misprocurement”
means public procurement in contravention of any provision of the Act, rules,
regulations, orders or instructions made thereunder or any other law in respect
of, or relating to the public procurement;
(k) “prescribed” means
prescribed by the rules made under the Act;
(l) “Procuring Agency” means,---
(i) a
department or office of the Government;
(ii) a district
government; or
(iii) an authority,
corporation, program, project, body or organization established by or under a
Provincial law or which is owned or controlled by Government of the
(m) “Public Fund” means the Provincial
Consolidated Fund and the Public Account of the Province as defined in the
Constitution of Islamic Republic of Pakistan and includes funds of a Procuring
Agency;
(n) “public procurement”
means acquisition of goods, services or rendering of works financed wholly or
partly out of the Public Fund, unless excluded by the Government;
(o) “regulations” means
regulations made under the Act;
(p) “rules” means rules
made under the Act;
(q) “services” includes
advisory and consultancy services of any kind; and
(r) “works”
means a construction work adding consisting of erection, assembly, repair,
renovation or demolition of a building or structure or part thereof, such as
site preparation, excavation, installation of equipment or materials and
decoration, finishing and includes incidental services such as drilling,
mapping, satellite photography, seismic investigations and similar activities,
if the value of those services does not exceed that of the works themselves.
(2) The
Authority shall be a body corporate, having perpetual succession and common
seal with power to enter into contract; and it may sue or be sued by the said
name.
(2) Subject
to sub-section (1), the Authority may,---
(a) monitor application
of the laws, rules, regulations, policies and procedures in respect of, or
relating to the public procurement;
(b) monitor the implementation of and evaluate
laws, rules, regulations, policies and procedures in respect of, or relating
to, inspection or quality of goods, services and works and recommend
reformulation thereof or revisions therein as it deems necessary;
(c) recommend to the Government revisions in or formulation of new
laws, rules and policies in respect of or related to public procurement;
(d) make regulations and lay down codes of ethics
and procedures for public procurement, inspection or quality of goods, services
and works;
(e) establish performance
indicators for procurement performance of the Procuring Agencies and monitor
compliance with these indicators through independent third party evaluation and
make recommendations for improvement of procurement performance of the
Procuring Agencies;
(f) issue guidance and
instructions regarding the interpretation and implementation of this Act, rules
and regulations;
(g) provide assistance
and coordinate with the Procuring Agencies for developing and improving their
institutional framework and public procurement activities;
(h) prepare standard documents to be used in connection with
public procurement;
(i) present an annual
report to the Government regarding the overall functioning of the public procurement
system, including recommendations on measures to be taken by the Government to
enhance the quality of procurement work;
(j) call a functionary
of a Procuring Agency to provide assistance in its functions and call for
information from a Procuring Agency pursuance of its objectives and functions;
(k) develop, promote and
support training and professional development policy of officials and other
persons engaged in public procurement; and
(l) perform other function as may be assigned to it by the
Government.
(2) The Board shall consist of,---
(a) Chief Secretary to the Government; Chairperson
(b) Secretary to the Government, Member
Finance Department;
(c) Secretary to the Government, Member
Planning
and Development Department;
(d) Secretary to the Government, Member
Health
Department;
(e) Secretary to the Government, Member
Information
Technology Department;
(f) Secretary
to the Government, Member
Irrigation and Power
Department;
(g) Three Members of Provincial Assembly Members
of the
female member of the
Assembly]
nominated by the Government;
(h) Three Members from Chamber of Members
Commerce
and Industry [3][3][including
at least one female] nominated by the
Government;
and
(i) Managing Director Secretary/
Member.
(3) A
Member other than an ex-officio Member shall hold office for a period of
three years and shall be entitled to the perks and privileges as the Government
may determine.
(4) A
Member other than an ex-officio Member may resign by tendering his
resignation to the Government.
(5) A casual vacancy in the Board shall be
filled through nomination by appropriate authority for the residue of the term
of the outgoing Member.
(6) The
existing of a vacancy in the constitution of the Board shall not invalidate an
act or proceedings of the Board.
(2) Seven
Members shall constitute the quorum for a meeting of the Board.
(3) An
ex-officio Member may nominate an officer, not below the rank of an
Additional Secretary, to attend the meeting.
(4) The
Board shall take decision by a simple majority of the Members present and
voting.
(5) The
Managing Director shall record the minutes of the meeting.
(2) The Government shall not vary, alter or
modify the terms and conditions of service of the Managing Director during his
term of office.
(3) The
Managing Director shall be responsible for day to day administration of the
Authority.
(4) The
Managing Director shall be eligible for re-appointment but his total tenure
shall not exceed six years.
(5) The Government shall not appoint a
person as the Managing Director, if he–
(a) has been convicted of
an offence involving moral turpitude;
(b) has been removed from
a service for misconduct;
(c) has been adjudged as
un-discharged insolvent;
(d) is incapable of
discharging his duties by reasons of physical or mental incapacity in the
opinion of a Medical Board constituted by the Government; or
(e) has a conflict of
interest with the Authority.
(6) The
Managing Director may resign by tendering his resignation to the Government.
(7) The
Managing Director shall not engage in any other service, business, vocation or
employment nor shall he, before the expiry of one year from the date of his
relinquishment of the charge of his office, enter into employment or accept any
advisory or consultancy relationship with any person engaged in public
procurement activity:
Provided that where the Managing
Director is a government servant, there shall be no such restrictions on his
employment after his retirement or transfer from the post of Managing Director.
(8) The Managing Director shall not have a
direct or indirect financial interest or connection with a Company engaged in
public procurement activity during the term of his office and for a period of
one year thereafter.
(9) The
Managing Director shall,---
(a) exercise
administrative control over the personnel of the Authority;
(b) exercise, in respect of the Authority, such other
management, administrative and financial powers as may be determined by the
Board;
(c) submit the annual budget proposals of the Authority to the
Board;
(d) prepare the annual report of the Authority for the Board and
the Government;
(e) exercise powers as
the Board may delegate to him; and
(f) act on behalf of the
Authority, in any emergency, subject to the obligation to report the action to
the Board at its next meeting and to seek ratification of his action.
(2) Subject
to sub-section (3), the criteria for the selection and appointment of a firm
for third party evaluation shall be prescribed.
(3) A
firm that submitted bid for the award of a public procurement contract of a
Procuring Agency shall not be eligible for appointment as evaluator of the
contracts of the Procuring Agency.
(4) The firm shall submit its evaluation
report to the Authority.
(2) The
Procuring Agency shall update the procurement activities on the website in the
prescribed manner.
(2) The
sources of income of the Fund shall be,---
(a) grants made by the
Government;
(b) donations, endowments and grants from any
individual or organization except from those dealing with public procurement;
(c) income from
investment by the Authority; and
(d) all other sums or
properties which may in any manner become payable to, or vest in the Authority.
(3) The Authority shall keep, maintain and
spend the Fund in the prescribed manner.
(4) The Authority shall exercise prudence in
all financial transactions.
(5) The
Authority shall spend the Fund for the purpose of,---
(a) paying an expenditure lawfully incurred by the
Authority, relating to remuneration of its Members, employees, advisers and
consultants of the Authority, legal fees and costs as well as other fees and
costs;
(b) paying any other expenses, costs or expenditure properly
incurred by the Authority in the performance of its functions or exercise of
its powers;
(c) purchasing or hiring equipment, machinery and any other work
and undertakings in the performance of its functions or exercise of its powers;
(d) payment of a financial
obligation; and
(e) payment of an expense for carrying out the provisions of
this Act.
(2) The
Managing Director shall prepare, for approval of the Government, by such date
and in such form as may be specified by the Government, a statement showing the
estimated receipts and current expenditure and the sums required by the
Authority from the Government during the next financial year.
16. Audit
of the Authority.– (1) The Government shall appoint a firm
of chartered accountants for the annual audit of the accounts of the Authority.
(2) Annual audit report of the accounts of
the Authority shall be laid before the Board for approval.
(2) The
Authority shall furnish information to the Government, as the Government may
require.
(2) The
Authority shall submit to the Government its annual audit report and the annual
performance report.
(3) The
Government shall lay the annual audit report and the annual performance report
in the Provincial Assembly of the
(a) approve audited accounts of the Authority;
(b) recommend exemption under section 23; and
(c) make, amend or repeal regulations.
(2) The
seal shall be authenticated in the manner as may be prescribed and a document,
pertaining to the public procurement, authenticated with the seal of the
Authority shall be admissible as evidence of the contents of the document.
(2) Notwithstanding anything contained in any law, anything done, proceedings or action taken, order or rule made, liability incurred or right acquired under the Ordinance XIX of 2007 or purported to have been done, taken, made, incurred or acquired under that Ordinance, from the date of promulgation of the Ordinance till the coming into force of this Act, shall be deemed to have been done, taken, made, incurred or acquired under this Act.
[1][1]This Act was originally
promulgated as Ordinance XIX of 2007; was given permanent life by PCO I of
2007; however, consequent upon the judgement of the Supreme Court of Pakistan
dated 31 July 2009, this Ordinance was laid in the Punjab Assembly on 14
October 2009; passed by it on 4 November 2009; assented to by the Governor of the
[2][2]Inserted by the
[3][3]Inserted by the
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