KARACHI: The Sindh High Court has directed the Karachi Water & Sewerage Corporation (KWSC) to finalise its decision regarding the conduct of fresh auction for six hydrants in the city within a period of two months.
The direction came on a petition of a contractor who had challenged continuing operation of water hydrants in the city despite the expiry of their two-year auction tenure.
The petitioner had submitted that the KWSC issued a tender for six water hydrants in May 2023 and despite the lapse of two years, no fresh auction for the hydrants had been conducted.
The petitioner’s counsel, Talha Abbasi, had also questioned the auction process alleging that the same contractors had repeatedly secured hydrant contracts over the past 15 years by quoting marginally above reverse prices thereby restricting competition and causing loss to the public exchequer.
He alleged that despite expiry of the contract, the hydrant contractors allegedly continued their operations without lawful authority, public notice or transparent process purportedly through tactics extensions, which was illegal and contrary to the principles of transparency and fair competition.
The KWSC’s counsel opposed the petition submitting that the water and sewerage corporation after deliberation had decided to further examine the financial, operational and legal aspects of the matter before reaching a final decision and such a decision would be made within reasonable time.
A division bench of the high court headed by Justice Adnanul Karim Memon after hearing the arguments observed that the matter of renewal or fresh auction was presently under active consideration of the KWSC which itself indicated that financial, operational and legal aspects required further examination before a final decision was taken.
The SHC observed that judicial interference at this stage in the form of declaring the existing arrangements unlawful would be premature particularly when the competent authority had not finally adjudicated the issue.
The high court, however, observed that public procurement and management of public assets must strictly conform to the principles of transparency, fairness and equality of opportunity and compliance with the Articles 4, 18 and 25 of the Constitution.
The bench observed that any continued arrangement beyond contractual expiry, if not backed by the lawful authority, must be regularised through a transparent and reasoned decision ensuring that no party was arbitrarily excluded and public interest and revenue were safeguarded.
The SHC directed the KWSC to positively finalise its decision regarding the conduct of fresh auction or any lawful interim arrangements strictly in accordance with the applicable rules and policy.
The high court observed that such a decision shall be taken after providing a proper opportunity of hearing to the petitioner and all the stakeholders concerned ensuring transparency and fairness in the process.
The bench ordered that a speaking order shall be passed clearly reflecting reasons addressing the issue of transparency, continuation of arrangements and future bidding process.
The SHC made it clear that until a final decision was taken, the matter shall remain within the domain of the competent authority but the same shall not be construed as approval of any arrangement found to be contrary to the law.
