The New Nation - Internet Edition

Staff Reporter

The Advisers' Committee on Public Purchase (Cabinet Purchase Committee) yesterday approved a proposal for re-appointment of four pre-shipment inspection (PSI) companies for certifying prices, quality and quantity of imported goods.

However, the committee chairman finance adviser AB Mirza Azizul Islam said that the government would not continue the pre-shipment inspection by the private companies after 2009, as there are many allegations of irregularities against the PSI companies.

"The customs department will be equipped with workforce and modern facilities to do the job instead," the Adviser said following the meeting.

Asked why the government has decided to extend the terms with the PSI companies' even after allegations of irregularities against them, the finance adviser said: "Actions will be taken when allegations are proven against anybody."

He said, "right now our customs department is not equipped to operate PSI operations. So we have extended the contracts for a limited period."

"We hope the customs department will be ready by 2009 through appointing necessary workforce and by procuring necessary equipment, including scanner machines," he added.

The National Board of Revenue (NBR) earlier selected four PSI agencies after scrutinising proposals submitted by seven PSI companies, as the NBR had floated an open tender for appointing new PSI agencies.

The selected PSI companies are SGS (Bangladesh) Limited, Bureau Veritas BIVAC (Bangladesh) Limited, Intertek Testing Limited (ITS) and OM Inspection Company (OMIC).

Another PSI firm, Konecta, which is now working with the NBR, failed to get its contract renewed for irregularities on its part.

During the previous BNP-led 4-party alliance government, four PSI companies were commissioned in August 2005 for three years to oversee import procedure.

In lien with regulations, the PSI companies will charge one per cent of the total import value from importers; the amount will be deposited with the government exchequer.

The companies would be officially paid Tk 375 crore for their services in the PSI business.

The Purchase Committee also approved a proposal of the Works Ministry for awarding a contract for developing land and roads of the proposed Uttara Residential Model Town project.

Another proposal placed by the Power Ministry for installing power substations in different cities under Rajshahi Division at a cost of Tk 90 crore got through the caretaker government's purchase body.

Industries Ministry's proposal for import of phosphoric acid for DAP fertiliser factory at a cost of Tk 176 crore and import of rock sulphur at Tk 184 crore also obtained the nod of the Purchase Committee.