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Govt monthly saving $9.7m in MoD oil deals

Govt monthly saving $9.7m in MoD oil deals

Jun 07, 2015 - 16:51

KABULinfo-icon (Pajhwok): The National Procurement Committee (NPC) on Sunday said the government was saving $9.7 million per month in short-term oil contracts of the Ministry of Defence (MoD) as compared to the earlier contracts.

After taking office, President Ashraf Ghani scrapped oil contracts of the MoD, suspended the ministry procurement officials, banned them from travelling abroad and ordered thorough investigations.

A committee, tasked with probing the matter, in its findings had said the oil prices for MoD were $100 million more expensive than the original market prices and $5 million had been embezzled in the contract.

Yama Yari, the NPC head, told journalists in Kabul the committee’s investigations were still ongoing and their further findings would be announced later.

He added the MoD earlier oil contract was one of the biggest and had to be scrapped due to anomalies and non-affordability. But the government had to take emergency measures to support ongoing military operations, he said.

“After cancelling the contract, we had to take short-term measures. Based on the new contract awarded to a domestic firm temporarily, the government is saving $9.8 million on monthly basis as compared to the previous deal,” he added.

Yari said a long-term procurement document was being prepared, but it would take time due to its importance. After completion of the document, he added, any firm could openly participate in the bidding process.

The NPC head said the committee’s 10th meeting, chaired by President Ghani, on Saturday night discussed 17 contracts from several MoD units, one from the civil aviation department and two contracts from the educationinfo-icon ministry.

More than 20 contracts worth 39 billion afghanis had been approved by the committee, he said. During its last 10 sessions, according to Yari, the committee had approved 110 contracts worth 60 billion afghanis.

Since then, he added, more than 5.6 billion afghanis had been saved. “Without any doubt these savings and start of the approved projects would play a significant role in economic and infrastructural development and employment.”

He said contracts of other departments and ministries were being evaluated and people would be kept informed about any new development.







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