January 23, 2025 12:05 am

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FBR halt vehicles purchase National

Senate committee directs FBR to halt purchase of 1,010 vehicles

The Senate Standing Committee on Finance has instructed the Federal Bureau of Revenue (FBR) to halt the purchase of 1,010 vehicles, following a meeting chaired by Senator Saleem Mandviwala.

The committee expressed outrage over the FBR’s decision to acquire over 1,000 vehicles worth billions of rupees. During the meeting, committee members questioned the need for such a large-scale vehicle purchase.

Finance Ministry officials explained that the vehicles were intended for field officers.

However, Senator Faisal Vawda criticized the deal, alleging that the vehicles were being purchased from specific companies with low maintenance costs, raising concerns about potential corruption.

He questioned whether the vehicle purchase was linked to the FBR’s tax shortfall and called for the process to be halted immediately.

READ: FBR chairman admits to corruption within department

Vawda argued that if the purchase went ahead without competitive bidding, it would lead to a major corruption scandal.

FBR officials confirmed that the order for 1,010 vehicles had already been placed, but Vawda maintained that the purchase should be stopped, with competition introduced if necessary.

He offered his support for the purchase if the FBR could demonstrate it was necessary to address a revenue shortfall, but only after proper scrutiny.

It is worth mentioning here that the FBR is set to procure over 1,000 vehicles in two phases, according to the official letter.

The FBR officials penned down a letter of intent to a private company for the procurement of 1,010 vehicles, with an estimated cost of Rs 6 billion.

The purchase will be carried out in two phases, with FBR saying in the letter that a payment of Rs 3 billion will be paid upfront which will be considered as full payment for the 500 vehicles.

The remaining amount of the vehicles will be paid after the delivery of the second consignment which will consist of over 500 vehicles.

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