FBR Told to Scrap Rs. 6 Billion “Scam and Scandal” Order for 1,000+ Cars

Senate Standing Committee on Finance has decided to write to Prime Minister Shehbaz Sharif and the Ministry of Finance to stop the Federal Board of Revenue (FBR) from purchasing 1010 vehicles for operational activities. The issue of the purchase of 1,010 vehicles (1300cc) was taken up by Senator Faisal Vawda before the committee here on Wednesday. The representative of the FBR (Chief Admin) failed to satisfy the committee on the purchase of these vehicles. The FBR’s official informed that the ECC has given approval for the purchase of these vehicles. The procurement committee and technical committee were formed for the purchase of these vehicles. The process has been initiated for the last many months. When asked about the advertisement given by the FBR, the official said that the PPRA Rules allow direct contracting after a market survey. According to the FBR official, the tax machinery cannot go above 1300cc vehicles as per the summary approved by the ECC. However, the Chairman of the committee stated why this limit of 1300cc was imposed under the summary. “Why do you write something like this when you cut out all the manufacturers? It looks like that 1300cc condition has been done by design,” Salim Mandivivala stated. The chairman of the committee said that the FBR should not do this kind of thing and they should be transparent while granting contracts. This is very disturbing to hear that FBR has committed such kind of thing. Former federal minister and Senator Faisal Vawda informed the committee that the FBR has rewarded its officials by giving vehicles worth Rs. 6 billion in lieu of a shortfall of Rs. 384 billion during the first six months of the current fiscal year. There was no specific competition while granting contact of vehicles to a specific manufacturer. The FBR is purchasing expensive vehicles without competition. “This is a scam and scandal that needs to be stopped”, the Senator said. The whole process of procurement has been done in haste. The FBR received approval for the vehicles on January 10, 2025, and subsequently issued the purchase order to the manufacturer on the same day. If we cannot stop this, then the Senate should dissolve the standing committee on Finance. Vawda stated that the relevant officials should be questioned on this issue. We will give FBR Rs. 10 billion worth of vehicles instead of Rs. 6 billion, but the FBR must overcome the revenue shortfall of Rs. 384 billion, he said. This kind of corruption is not acceptable at any cost. Why were all manufacturers not allowed to participate in the competition? he questioned. This is a tailored contract which needs legal action, the senator said. He demanded immediate withdrawal of the purchase order issued to the car manufacturer. The vehicles should be purchased after proper competition among all manufacturers. Legal action should be taken against the involved officials, Faisal Vawda added.