Specific company used Senate panel to derail FBR’s vehicle purchase: Asif 

ISLAMABAD: Two days after the Senate Standing Committee on Finance asked the Federal Board of Revenue (FBR) to halt the purchase of 1,010 vehicles, terming it gratuitous, Defence Minister Khawaja Asif has claimed that a specific company used the Senate panel to cancel the contract, aiming to secure the procurement contract for itself.

During an interview, he urged the FBR to disclose the elements behind the hullabaloo. 

Asif said that the specific firm, aiming to secure the procurement contract, approached the senators to influence the process, but despite its efforts, it failed to achieve its goal.

The defence minister said that the said company, which is producing vehicles above 1300CC, did not meet the government requirement. Asif asked the FBR to disclose the name of the company and the people involved in the alleged outrageous behaviour.

He alleged that large companies resort to unethical tactics for their financial interests. He said that the FBR last purchased vehicles in 2012 and its junior officers did not have vehicles for operational purposes.

He said that FBR’s field officers, whose perks and allowances were frozen in 2012, continue to get the same despite inflation over the years. He said that the FBR has decided to provide vehicles for field officers to improve efficiency and meet the revenue target of Rs13 trillion for the current fiscal year.

He said that the Economic Coordination Committee (ECC) of the cabinet had already approved the purchase after the cabinet and the vehicle authorisation committee gave the nod. 

Asif said that the cabinet has approved the purchase of 1087 vehicles up to 1300CC to ensure operational efficiency while adhering to budgetary constraints.

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.