Islamabad, January 23, 2025 – The Federal Board of Revenue (FBR) has come under fire from the Senate Standing Committee on Finance for failing to provide satisfactory explanations regarding the purchase of 1,010 Honda cars. The committee has now decided to escalate the matter by writing to Prime Minister Shehbaz Sharif and the Ministry of Finance to halt this procurement.
The issue, initially raised by former federal minister and Senator Faisal Vawda, was brought before the committee a day earlier. The controversy revolves around the procurement of 1,010 vehicles, each with an engine capacity of 1300cc, ostensibly for operational activities. The committee questioned the rationale and justification behind the purchase, with FBR’s chief admin struggling to address the concerns.
During the proceedings, the FBR representative attempted to defend the decision, claiming that the Economic Coordination Committee (ECC) had approved the procurement as part of a broader plan to enhance the operational capacity of FBR officials. According to the FBR official, technical and procurement committees were established to oversee the process, which had been underway for several months and was not a sudden decision.
However, the committee members raised multiple objections. They questioned why the summary submitted to the ECC explicitly specified vehicles with an engine capacity of up to 1300cc, potentially favoring a particular manufacturer. They also criticized the exclusion of other companies from the bidding process, the lack of competitive bidding, and the apparent haste in issuing the purchase order. The FBR official explained that the direct contracting was conducted in line with Public Procurement Regulatory Authority (PPRA) rules following a market survey. This justification, however, failed to satisfy the committee.
Senator Saleem Mandviwalla, chairman of the committee, pointed out that the restriction to 1300cc vehicles seemed deliberate and accused the FBR of non-transparency. He emphasized the need for a fair and competitive process, stating, “The FBR should not engage in such practices. Transparency must be upheld.” He added that social media had been abuzz with criticism of the procurement process.
Former federal minister Faisal Vawda alleged that the FBR had rewarded its officials with vehicles worth Rs6 billion despite a revenue shortfall of Rs384 billion during the first half of the fiscal year. Meanwhile, Chairman Mandviwalla revealed that he had discussed the matter with Minister of State for Finance Ali Pervaiz Malik, who assured that the procurement process would be reviewed if due procedures were not followed.
The Senate committee has demanded immediate action to ensure transparency and accountability in this high-value procurement, which has raised significant concerns among stakeholders.