Senator warns FBR to halt vehicle purchase or face NAB, FIA cases

ISLAMABAD: The Senate Standing Committee on Finance and officials of the Federal Board of Revenue (FBR) and the Ministry of Finance virtually locked horns over the tax body’s decision to purchase 1,010 vehicles, with one senator warning of approaching the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) if they proceeded with the plan.

Earlier, the FBR — whose prime responsibility is to collect taxes to boost dwindling revenues — announced to spend a whooping Rs6 billion to purchase new vehicles for what it said to “boost operational capacity” of the tax body.

During the committee meeting chaired by Chairman Senator Saleem Mandviwalla, the Ministry of Finance officials explained that the vehicles were intended for field officers to enhance their efficiency.

Mandviwalla questioned whether the field officers used bicycles in the past, referring to the unnecessary nature of the purchase.

When the committee directed the FBR to halt the vehicle purchase, saying they will write a letter to the prime minister in this regard, the FBR officials said that a purchase order had already been issued after the Economic Coordination Committee (ECC) and the cabinet gave the node.

Senator Faisal Vawda labelled the decision as outright corruption, stating that he would approach the NAB and the FIA if the vehicles were purchased.

He demanded that the committee declare “this procurement a scandal and take immediate action.”

He called for an immediate halt to the purchase, arguing that FBR officers were being rewarded with vehicles despite a significant tax shortfall of Rs384 billion.

In a letter written to Honda Atlas in response to their quotation, the FBR expressed the intent to procure 1,010 new Honda City 1.2L CVT with the add-ons and special features.

The bureau also informed the company that they will buy the new vehicles in two phases, with an upfront payment of Rs3 billion for the first batch of 500 vehicles in the first phase. The rest of the payment will be made once the first batch is delivered.

The full delivery of the 1,010 vehicles is expected to take place between January and May 2025. The FBR wants 75 vehicles to be delivered in January, 200 in February, and 225 in March.

In the second phase, it required the vendor to deliver 250 vehicles in April, followed by the remaining 260 in May.

Meanwhile, legal experts have described the Senate Standing Committee on Finance’s directive to stop the FBR from purchasing new vehicles as exceeding its authority.

Supreme Court advocate Imran Shafiq told HUM News English that it is the executive’s prerogative to decide how to utilise its budget. He said that the Senate committee’s “move to halt the purchase of vehicles goes beyond its jurisdiction, as the committee can only make recommendations, while implementation falls under the purview of the relevant authority.”

Former NAB prosecutor Raja Amir Abbas said the Senate standing committee cannot overturn decisions made by the cabinet and the ECC. He clarified that the committee does not have the authority to ignore the ECC and federal cabinet decisions.