Jeeps for 56 supervisory MPs run into ‘engine trouble’
View(s):A cabinet proposal to provide jeeps for 56 MPs who were appointed to supervise provincial development projects is to be reviewed by the Cabinet Committee on Economic Management (CCEM) on a top level directive.
The attempt to procure 56 jeeps for these MPs by the Finance Ministry has been suspended following a directive issued by the President on October 3 under his observations on the Cabinet Memorandum No/16/1952/719/124 presented by Minister Ravi Karunanayake.
According to the cabinet paper, the monthly rental for jeep is around Rs. 590,000 but would eventually reach Rs.700,000 after adding VAT and NBT.
In his comments, the President has observed that the rental amount is too high and also suggested to follow the state procurement process ensuring transparency.
The contract to provide 56 jeeps was handed over to the joint venture of Value Trade (Pvt) Ltd and Toyozumi Power Marketing GMBH Company.
The awarding of the contract to this joint venture company is also violating regulations as the price quoted by the company is much higher than the stipulated amount of the maximum rate.
According to the Cabinet Memorandum No/16/1952/719/124, the Finance Ministry has selected the joint venture party as it has agreed to submit an insurance bond of Rs.350 million from Cooperative Insurance Company Ltd.
The other bidder Pasans Rent –A- Car and Tours (Pvt) Ltd had failed to submit a performance bond and this company had been disqualified due to this reason.
The Government has suspended the purchase of new vehicles for ministries, state institutions and agencies and instead allows the hire of brand new or unregistered vehicles.