Updated: Sunday August 28, 2016/AlAhad
Thoul Ki'dah 25, 1437/Ravivara
Bhadra 06, 1938, at 04:26:01 PM
The Public Procurement Regulatory Authority Ordinance,
2002
ORDINANCE NO. XXII OF 2002
An Ordinance to provide for the
establishment of Public Procurement Regulatory Authority for regulating public
procurement of goods, services and works in the public sector
WHEREAS it is expedient to provide for
the establishment of a Public Procurement Regulatory Authority for regulating
procurement of goods, services and works in the public sector and for matters
connected therewith or ancillary thereto;
AND WHEREAS the President is satisfied
that circumstances exist which render it necessary to take immediate action;
NOW, THEREFORE, in pursuance of the
Proclamation of Emergency of the fourteenth day of October, 1999, and the
Provisional Constitution Order No. 1 of 1999, read with the Provisional
Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers
enabling him in that behalf, the President of the Islamic Republic of Pakistan
is pleased to make and promulgate the following Ordinance:---
1. Short title, extent and
commencement.-(1) This Ordinance may
be called the Public Procurement Regulatory Authority Ordinance, 2002.
(2) It extends to the whole of
(3) It shall come into force at once.
2. Definitions. In this Ordinance, unless there is anything repugnant
in the subject or context,---
(a) “Authority”
means the Public Procurement Regulatory Authority established under section 3;
(b) “Board”
means the Board constituted under section 6;
(c) “Chairperson”
means the Chairperson of the Board;
(d) “Fund”
means the fund established under section 9;
(e) “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;
(f) “Managing
Director” means the Managing Director appointed under section 8;
(g) “member”
means a member of the Authority;
(h) “misprocurement”
means public procurement in contravention of any provision of this Ordinance,
any rules, regulations, orders or instructions made thereunder or any other law
in respect of, or relating to, public procurement;
(i) “prescribed”
means prescribed by rules made under this Ordinance;
(j) “procuring
agency” means,---
(i) any
Ministry, Division, Department or any office of the Federal Government;
(ii) any
authority, corporation, body or organization established by or under a Federal
law or which is owned or controlled by the Federal Government.
(k) “Public
Fund” means the Federal Consolidated Fund and the Public Account of the
Federation and includes funds of enterprises which are owned or controlled by
the Federal Government.
(l) “public
procurement” means acquisition of goods, services or construction of any works
financed wholly or partly out of the Public Fund, unless excluded otherwise by
the Federal Government;
(m) “regulations”
means regulations made under this Ordinance;
(n) “rules”
means rules made under this Ordinance;
(o) “service”
means any object of procurement other than goods or works; and
(p) “works”
means any construction work 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 material 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.
CHAPTER-II.-ESTABLISHMENT
OF AUTHORITY
3. Establishment of Authority.__(1) There is hereby established an Authority to be
called the Public Procurement Regulatory Authority for carrying out the
purposes of this Ordinance.
(2) The Authority shall be a body
corporate, having perpetual succession and a common seal, with powers subject
to the provisions of this Ordinance, to acquire and hold property, both movable
and immovable, and, sue and be sued by the name assigned to it by subsection
(1).
(3) The headquarters of the authority
shall be at
4. Power of the Federal Government
to issue directives. The Federal
Government tray; as and when it considers necessary, issue directives to the
Authority on matters of policy, and such directives shall be binding on the
Authority.
5. Functions and powers of the
Authority.__(1) Subject to other provisions of this Ordinance, the
authority may take such measures and exercise such powers as may be necessary
for improving governance, management, transparency, accountability and quality
of public procurement of goods, services and works in the public sector.
(2) Without prejudice to the generality
of the powers conferred by subsection (1), the Authority may,---
(a) monitor
application of the laws, rules, regulations, policies and procedures in respect
of or relating to, 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 Federal 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 procedure for public procurement,
inspection or quality of goods, services an works;
(e) monitor
public procurement practices and make recommendations to improve governance,
transparency, accountability and quality of public procurement;
(f) monitor overall performance of procuring agencies and
make recommendations for. improvements in their institutional set up:
(g) provide
and coordinate assistance to procuring agencies for developing and improving
their institutional framework and public procurement activities;
(h) submit
reports to the Government in respect of public procurement activities of
procuring agencies;
(i) call any
functionary of procuring agencies to provide assistance in its functions and
call for any information from such agencies in pursuance of its objectives and
functions; and
(j) perform
any other function assigned to it by the Federal Government or that is
incidental or consequential to any of the aforesaid functions.
CHAPTER - III
MANAGEMENT AND ADMINISTRATION OF THE AUTHORITY
6. Board.__(1) General directions and administration of the
Authority and its affairs shall vest in a Board which may exercise all powers,
perform all functions and do all acts end things which may be exercised,
performed or done by the Authority.
(2) The Board shall consist of the
following Members, namely:---
(1) Secretary, Finance Division Chairperson
(2) Secretary, Ministry of Industries
and Production Member
(3) Secretary, Defence Production
Division Member
(4) Secretary, Ministry of Water and
Power Member
(5) Secretary, Ministry of Housing and
Works Member
(6) Secretary, Ministry of
Communications Member
(7) Three Members from private sector
to be
nominated by the Federal Government Members
(8) Managing Director Member
(3) The Managing Director shall act as
Secretary to the Board
(4) A member appointed from the private
sector shall hold office for a period of three years and shall be entitled to
such terms and conditions as the Federal Government may determine.
(5) A member from the private sector
may, by writing in his hand addressed to the Federal Government, resign his
office.
(6) A casual vacancy in the office of a
private sector member shall be filled by appointment of another member from the
private sector for the residue of the terms of his predecessor.
7. Meeting of the Board.__(1) The meeting of .the Board shall be presided over
by the Chairperson or, in his absence the member elected by the members, shall
preside at the meeting of the Board.
(2) Five members shall constitute a
quorum for a meeting of the Board requiring a decision by the Board.
(3) The meeting of the Board shall be
held at such times, places and in such manner as may be prescribed by
regulation.
(4) The members shall have reasonable
notice of the rime and place of the meeting and matters on which a decision by
the Board shall be taken in such meeting.
(5) The decision of the Board shall be
taken by the majority of its members present and, in case of a tie, the member
presiding a meeting shall have a casting vote.
(6) All orders, determination and
decision of the Board shall be taken in writing and shall be signed by the
Managing Director.
8. Managing Director.__(1) The Federal Government shall select and appoint a
whole-time Managing Director to serve as member of the Board and shall be
responsible for day to day administration of the Authority for such period and
on such terms and conditions as the Federal Government may determine.
(2) The Managing Director shall be appointed
for three years and he shall be eligible for re-appointment but his total
tenure shall in no case shall be appointed or continue as Managing Director, if
he,---
(a) has been
convicted of an offence involving moral turpitude;
(b) has been
removed from service for misconduct;
(c) has been
adjudicated as insolvent; .
(d) is
incapable of discharging his duties by reasons of physical or mental incapacity
and has been so declared by a Medical .Board appointed by the Federal
Government; or
(e) fail to
disclose any conflict of interest at or within the time provided for such
disclosure by or under this Ordinance or contravene any of the provisions of
this Ordinance.
(4) The Managing Director may, at any
time, resign his office by writing under his hand addressed to the Federal
Government.
(5) The Managing Director shall be paid
such salary arid allowances as the Federal Government may determine but his
salary and allowances shall not be varied to his disadvantage during his term
of office.
(6) The Managing Director shall not,
during the term of his office, engage himself to any other service, business,
vocation or employment nor shall he before the expiration of one year thereof
enter into, employment or accept any advisory or consult 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 he has retired or transferred from the post of Managing
Director and where he is from private sector he shall not have any direct or
indirect financial interest or have any connection with any company engaged in
public procurement activity for so long as he holds office and for a period of
one year thereafter,---
(7) The Managing
Director shall have power and responsibility to,---
(a) exercise
administrative control over the personnel of the Authority.
(b) exercise
in respect of the Authority, such other management, financial powers as deemed
appropriate by the Authority.
(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 Federal Government;
(e) exercise
such 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
such action to the Board at its next meeting and to seek the Board's
ratification of any action so taken.
CHAPTER IV.—FINANCIAL
PROVISIONS
9. Funds.(1) There is hereby established a Fund to be known as
the Public Procurement Regulatory Authority Fund which shall vest in the
Authority and shall be utilized by the Authority to meet the charges in connection
with its functions under this Ordinance.
(2) To the credit of the Public
Procurement Authority, a fund shall be placed comprising,---
(a) such
sums as -the Federal Government may, from time to time, allocate to it in the
annual budget;
(b) grants;
(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 in respect of any matter.
(3) The Authority, while performing its
functions and exercising its powers under the Ordinance, shall exercise highest
sense of prudence as far as expenditures are concerned.
10. Expenditure to be charged on the
Fund. The Fund shall be expended for
the purpose of,---
(a) paying
any expenditure lawfully incurred by -the Authority, relating to remuneration
of its members, employees, advisers, and consultants of the Authority;
including provident fund contributions, superannuating allowances or
gratuities, legal fees and costs as well as other fees and costs;
(b) paying
any other expenses, costs or expenditure properly incurred or accepted by the
Authority in the performance of its functions or the exercise of its powers
under this Ordinance;
(c)
purchasing or hiring equipment, machinery and any other work and undertakings
in the performance of its functions or the exercise of its powers under this
Ordinance.
(d) repaying
any financial accommodation received; and
(e)
generally, paying any expenses for carrying into effect the provisions of this
Ordinance.
11. Power to obtain finances and receive
grants. The Authority may from time
to time and with the approval of the Federal Government, accept grants from
entities both domestic and international, including multilateral agencies for
meeting any of its obligations or performing of any of its functions.
12. Investment. The Authority may invest its surplus funds in
accordance with the instructions of the Federal Government.
13. Budget and
accounts. The Authority shall cause
its accounts to be maintained properly and in respect of each financial year
submit for approval of the Federal Government by such date and in such form as
may be specified by the Federal Government a statement showing the estimated
receipts and current expenditure and the sums to be required from the
Government during the next financial year.
14. Maintenance of accounts. The Authority shall cause proper accounts to be kept
and shall after the end of each financial year cause to be prepared for that
financial year a statement of accounts of the Authority which shall include a
balance sheet and an account of receipt and expenditure.
15. Audit. The accounts of the Authority, shall be audited every
year by the Auditor-General of
CHAPTER V.—REGULATORY AND OTHER PROVISIONS
16. Information.-(1) The Authority may call for any information
required by it for carrying out the purposes of this Ordinance, from any person
or any institution in public procurement activities and any such person or
institution shall provide the required information called by the Authority.
(2) The Authority shall furnish to the
Federal Government information with respect to the policies and procedures it
is pursuing proposes to pursue in the performance of any of its functions under
Ordinance as the Federal Government may, from time to time require.
17. Annual report. Within one hundred and twenty days from the end of
each financial year, the Authority shall cause a report to be prepared on its
activities including inquiries and investigations made by the Authority under
this Ordinance during that financial year and release to the public after it
has been seen by the Cabinet:
CHAPTER VI.—MISCELLANEOUS
18. Appointment of officers and
staff, etc.(1) The Authority may, from time to time and within
its resources, appoint such officers, servants, advisers, consultants and
experts as it may consider necessary for performance of its functions.
(2) The Authority shall by regulations
prescribe the procedure for appointment of its officers, servants, advisers,
consultants and experts and. the terms and conditions of their service.
19. Members,
officers, etc. to be public servants.
The Chairperson, members, director-general, officers, servants, advisers,
consultants and experts of the Authority shall, when acting or purporting to
act in pursuance of any of the provisions of this Ordinance or the rules and
regulations made thereunder, be deemed to be public servants within the meaning
of section 21 of the Pakistan Penal Code (Act XLV of 1860).
20. Delegation. The Authority may, by such conditions and limitations
as it may deem fit to impose, delegate any of its functions or powers to the
Managing Director, or one or more members or any of its officers except the
power to,---
(a) approve
audited accounts;
(b)
recommend exemption under section 21; and
(c) make or
repeal regulation made under this Ordinance.
21. Powers to exempt. The Authority may, for reasons to be recorded in
writing; recommend to the Federal Government that the procurement of an object
or class of objects in the national interest be exempted from the operation of
this Ordinance or any rule or regulation made thereunder or any other law
regulating public procurement and the Federal Government on such
recommendations shall exempt the aforesaid objects or class of objects from the
operation of the laws and rules and regulations made thereunder.
22. Validity of proceedings. No act or proceedings of the Authority or the Board,
shall be invalid by reason only of the existence of a vacancy in, or defect in
the constitution of, the Authority or the Board.
23. Indemnity. No suit, prosecution, or other legal proceedings shall
lie against the Authority, the Board, the Chairperson or any member, officer,
servants, advisers or consultants of the Authority in respect of anything in
good faith done or intended to be done under this Ordinance or the rules and
regulations made thereunder.
24. Common seal.-(1) The Authority shall have a common seal and such
seal shall be kept by the Managing Director or such other person as the
Chairperson may authorize.
(2) The seal shall be authenticated in
the same manner as may be prescribed by regulation and any document purported
to be sealed with the seal so authenticated shall be receivable as evidence of
the particular stated in the document.
25. Winding up. No provision of law relating to winding up of bodies
corporate shall apply to the Authority and the Authority shall not be wound up
except by the orders of the Federal Government in the same manner as the
Federal Government may direct.
26. Power of the Federal Government
to make rules. The Federal Government
may, by notification in the official Gazette, make rules for carrying out the
purposes of this Ordinance.
27. Power of the Authority to make
regulations. The Authority may make
regulations, not inconsistent with the provisions of this Ordinance and the
rules made thereunder, for carrying out the purposes of this Ordinance.
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