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  "title": "PUNJAB PROCUREMENT REGULATORY AUTHORITY ACT 2009",
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  "text": "THE PUNJAB PROCUREMENT REGULATORY AUTHORITY \r\nACT 2009 \r\n(VIII of 2009) \r\nCONTENTS \r\n1. Short title, extent and commencement \r\n2. Definitions \r\n3. Establishment of Authority \r\n4. Directions by the Government \r\n5. Functions and powers of the Authority \r\n6. Board \r\n7. Meeting of the Board \r\n8. Managing Director \r\n9. Appointment and remuneration of the third party evaluation firms \r\n10. Training \r\n11. Maintenance of Website \r\n12. Fund \r\n13. Power to obtain finances and receive grants \r\n14. Investment \r\n15. Budget and accounts \r\n16. Audit of the Authority \r\n17. Information \r\n17A. Blacklisting \r\n18. Annual report \r\n19. Ethical considerations \r\n20. Appointment of officer and staff, etc \r\n21. Members, officers, etc. to be public servants \r\n22. Delegation \r\n23. Exemption \r\n24. Indemnity \r\n25. Common seal \r\n26. Rules \r\n27. Regulations \r\n28. Repeal and Validation \r\n \r\nTEXT \r\nTHE PUNJAB PROCUREMENT REGULATORY AUTHORITY ACT 2009 \r\n(VIII of 2009) \r\n[17th November, 2009] \r\nAn \r\nAct \r\nto provide for the establishment of the Procurement Regulatory Authority in the \r\nPunjab. \r\n WHEREAS it is expedient to provide for the establishment of the Procurement \r\nRegulatory Authority for regul ating procurement of goods, services and works in the \r\npublic sector and for matters connected therewith; \r\nIt is hereby enacted as follows:– \r\n1. Short title, extent and commencement .– (1) This Act may be cited as the \r\nPunjab Procurement Regulatory Authority Act 2009. \r\n(2) It extends to the whole of the Punjab. \r\n(3) It shall come into force at once. \r\n2. Definitions.– In this Act: \r\n(a) “Authority” means the Punjab Procurement Regulatory Authority \r\nestablished under section 3; \r\n(b) “Board” means the Board of Management constituted under section 6; \r\n(c) “Chairperson” means the Chairperson of the Board; \r\n1\r\n[(d) “corrupt practice” means the offering, giving, receiving, or soliciting of \r\nanything of value to influence the action of a public official, bidder or \r\ncontractor in the procurement process or in contract execution to the \r\ndetriment of the procuring agency; or misrepresentation of facts in \r\norder to influence a procurement process or the execution of a \r\ncontract, collusive practices among bidders (prior to or after bid \r\nsubmission) designed to establish bid prices at artificial, non -\r\ncompetitive levels and to deprive the procuring agency of the benefits \r\nof free and open competition and any request for, or solicitation of \r\nanything of value by any public official in the course of the exercise of \r\nhis duty; it may include any of the following: \r\n(i) coercive practice by impairing or harming, or threatening to \r\nimpair or harm, directly or indirectly, any party or the property of \r\nthe party to influence the actions of a party to achieve a wrongful \r\ngain or to cause a wrongful loss to another party; \r\n                                                 \r\n1Substituted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab \r\nGazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.2. \r\n(ii) collusive practice by arrangement between two or more parties \r\nto the procurement process or contract execution, designed to \r\nachieve with or without the knowledge of the procuring agency \r\nto es tablish prices at artificial, noncompetitive levels for any \r\nwrongful gain; \r\n(iii) offering, giving, receiving or soliciting, directly or indirectly, of \r\nanything of value to influence the acts of another party for \r\nwrongful gain; \r\n(iv) any act or omission, inc luding a misrepresentation, that \r\nknowingly or recklessly misleads, or attempts to mislead, a party \r\nto obtain a financial or other benefit or to avoid an obligation; \r\n(v) obstructive practice by harming or threatening to harm, directly \r\nor indirectly, persons  or their property to influence their \r\nparticipation in a procurement process, or affect the execution of \r\na contract or deliberately destroying, falsifying, altering or \r\nconcealing of evidence material to the investigation or making \r\nfalse statements before i nvestigators in order to materially \r\nimpede an investigation into allegations of a corrupt, fra udulent, \r\ncoercive or collusive practice; or threatening, harassing or \r\nintimidating any party to prevent it from disclosing its knowledge \r\nof matters relevant to th e investigation or from pursuing the \r\ninvestigation, or  acts intended to materially impede the exercise \r\nof inspection and audit process;] \r\n(e) “Fund” means the Public Procurement Fund; \r\n(f) “goods” means articles and objects of every kind and description \r\nincluding raw materials, products, equipment, machinery, spares and \r\ncommodities in any form and includes services incidental to installation, \r\ntransport, maintenance and similar obligations related to the supply of \r\ngoods if the value of these services does not  exceed the value of such \r\ngoods; \r\n(g) “Government” means the Government of the Punjab; \r\n(h) “Managing Director” means the Managing Director of the Board; \r\n(i) “Member” means a member of the Board; \r\n(j) “misprocurement” means public procurement in contravention  of any \r\nprovision of the Act, rules, regulations, orders or instructions made \r\nthereunder or any other law in respect of, or relating to the public \r\nprocurement; \r\n(k) “prescribed” means prescribed by the rules made under the Act; \r\n2\r\n[(l)  “procuring agency” means: \r\n(i) a department, attached department of the Government; \r\n(ii) an autonomous body or a special institution of the Government; \r\n                                                 \r\n2Substituted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab \r\nGazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.2. \r\n(iii) a court or tribunal financed by the Provincial Consolidated Fund; \r\n(iv) Provincial Assembly of the Punjab; \r\n(v) a local government; \r\n(vi) a body corporate owned or controlled by the Government or a \r\nlocal government; or \r\n(vii) a private organization financed by the Government or a local \r\ngovernment where such finance is not less than five million \r\nrupees and constitutes not less th an fifty percent of the \r\nexpenditure of the organization in the financial year;] \r\n3\r\n[(m) * * * * * * * * * * *   ] \r\n4\r\n[(n) “public procurement” means procurement of goods, works or services \r\nby a procuring agency wholly or partly financed out of the Provincial \r\nConsolidated Fund or the Public Account of the Province or funds of a \r\nprocuring agency;] \r\n(o) “regulations” means regulations made under the Act; \r\n(p) “rules” means rules made under the Act; \r\n5\r\n[(q) “services” includes physical, maintenance, professional, intel lectual, \r\nconsultancy or advisory services but does not include appointment of \r\nan individual to a post or office, advertisement, arbitration, conciliation \r\nor mediation services, services of an advocate in a court case or any \r\nother services specifically excluded under the rules;] \r\n(r) “works” means a construction work adding consisting of erection , \r\nassembly, repair, renovation or demolition of a building or structure or \r\npart thereof, such as site preparation, excavation, installati on of \r\nequipment or materials and decoration, finishing and includes \r\nincidental services such as drilling, mapping, satellite photography, \r\nseismic investigations and similar activities, if the value of those \r\nservices does not exceed that of the works themselves. \r\n3. Establishment of Aut hority.– (1) The Government shall, by notification, \r\nestablish an Authority to be called the Punjab Procurement Regulatory Authority for \r\ncarrying out the purposes of this Act. \r\n (2) The Authority shall be a body corporate, having perpetual succession \r\nand common seal with power to enter into contract; and it may sue or be used by the \r\nsaid name. \r\n4. Directions by the Government.– The Government may issue directive to the \r\nAuthority on a matter of policy and the directive shall be binding on the Authority. \r\n                                                 \r\n3Omitted by th e Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab \r\nGazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.2. \r\n4Substituted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab \r\nGazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.2. \r\n5Substituted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab \r\nGazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.2. \r\n5. Functions and powers of the Authority .– (1) The Authority may take \r\nmeasures and exercise powers as may be necessary for improving governance, \r\nmanagement, transparency, accountability and quality of public procurement. \r\n (2) Subject to sub-section (1), the Authority may– \r\n(a) monitor application of the laws, rules, regulations, policies and \r\nprocedures in respect of, or relating to the public procurement; \r\n(b) monitor the implementation of and evaluate laws, rules, regulations , \r\npolicies and procedures in respect of,  or relating to, inspection or \r\nquality of goods, services and works and recommend reformulation \r\nthereof or revisions therein as it deems necessary; \r\n(c) recommend to the Government revisions in or formulation of new laws, \r\nrules and policies in respect of or related to public procurement; \r\n(d) make regulations and lay down codes of ethics and procedures for \r\npublic procurement, inspection or quality of goods, services and works; \r\n(e) establish performance indicators for procurement performance of the \r\nProcuring A gencies and monitor compliance with these indicators \r\nthrough independent third party evaluati on and make \r\nrecommendations for improvement of procurem ent performance of the \r\nProcuring Agencies; \r\n(f) Issue guidance and instructions regarding the interpretation and \r\nimplementation of this Act, rules and regulations; \r\n(g) provide assistance and coordinate with the Procuring Agencies for \r\ndeveloping and improving their institutional framework and public \r\nprocurement activities; \r\n(h) prepare standard documents to be used  in connection with public \r\nprocurement; \r\n(i) present an annual report to the Government regarding the overall \r\nfunctioning of the public procurement system, including \r\nrecommendations on measures to be taken by the Government to \r\nenhance the quality of procurement work; \r\n(j) call a functionary of a Procuring Agency to provide assistance in its \r\nfunctions and call for information from a Procuring Agency pursuance \r\nof its objectives and functions; \r\n(k) develop, promote and support training and professional developmen t \r\npolicy of officials and other persons engaged in public procurement; \r\nand \r\n(l) perform other function as may be assigned to it by the Government. \r\n6. Board.– (1) The management and administration of the Authority shall vest in \r\nthe Board of Management. \r\n (2) The Board shall consist of– \r\n(a) Chief Secretary to the Government; Chairperson \r\n(b) Secretary to the Government, Finance \r\nDepartment; \r\nMember \r\n(c) Secretary to the Government, Planning and \r\nDevelopment Department; \r\nMember \r\n(d) Secretary to the Government, Health \r\nDepartment; \r\nMember \r\n(e) Secretary to the Government, Information \r\nTechnology Department; \r\nMember \r\n(f) Secretary to the Government, Irrigation & Power \r\nDepartment; \r\nMember \r\n(g) Three Members of Provincial Assembly of the \r\nPunjab \r\n6\r\n[including at least one female member \r\nof the Assembly] nominated by the Government;  \r\nMembers \r\n \r\n(h) Three Members from Chamber of Commerce \r\nand Industry \r\n7\r\n[including at least one female] \r\nnominated by the Government; and  \r\nMembers \r\n(i) Managing Director Secretary/Member. \r\n (3) A Member other than an ex-officio Member shall hold office for a period \r\nof three years and shall be entitled to the perks and privileges as the Government \r\nmay determine. \r\n (4) A Member other than an ex-officio Member may resign by tendering his \r\nresignation to the Government. \r\n (5) A casual vacancy in the Board shall be filled through nomination by \r\nappropriate authority for the residue of the term of the outgoing Member. \r\n (6) The existing of a vacancy in the constitution of the Board shall not \r\ninvalidate an act or proceedings of the Board. \r\n7. Meeting of the Board.– (1) The meetings of the Board shall be presided over \r\nby the Chairperson or in his absence by a member nominated by the Chairperson. \r\n (2) Seven Members shall constitute the quorum for a meeting of the \r\nBoard. \r\n (3) An ex-officio Member may nominate an officer, not below the rank of \r\nan Additional Secretary, to attend the meeting. \r\n (4) The Board shall take decision by a simple majority of the Members \r\npresent and voting. \r\n (5) The Managing Director shall record the minutes of the meeting. \r\n                                                 \r\n6Inserted by the Punjab Fair Representation of Women Act 2014 (IV of 2014), w.e.f. 12.3.2014, s.2 and the Schedule; and \r\npublished in the Punjab Gazette (Extraordinary), pages 2733-2744. \r\n7Inserted by the Punjab Fair Repr esentation of Women Act 2014 (IV of 2014), w.e.f. 12.3.2014, s.2 and the Schedule; and \r\npublished in the Punjab Gazette (Extraordinary), pages 2733-2744. \r\n8. Managing Director.– (1) The Government shall appoint Managing Director of \r\nthe Board for a period of three years on the terms and conditions as it may \r\ndetermine. \r\n (2) The Government shall not vary, alter or modify the terms and \r\nconditions of service of the Managing Director during his term of office. \r\n (3) The Managing Director shall be responsible for day to day \r\nadministration of the Authority.  \r\n (4) The Managing Director shall be eligible for re -appointment but his total \r\ntenure shall not exceed six years. \r\n (5) The Government shall not appoint a person as the Managing Director, \r\nif he– \r\n (a) has been convicted of an offence involving moral turpitude; \r\n (b) has been removed from a service for misconduct; \r\n(c) has been adjudged as un-discharged insolvent; \r\n(d) is incapable of discharging his duties by reasons of physical or mental \r\nincapacity in the opinion of a Medical Board constituted by the \r\nGovernment; or \r\n(e) has a conflict of interest with the Authority. \r\n (6) The Managing Director may resig n by tendering his resignation to the \r\nGovernment. \r\n (7) The Managing Director shall not engage in any other service, business, \r\nvocation or employment nor shall he, before the expiry of one year from the date of \r\nhis relinquishment of the charge of his office , enter into employment or accept any \r\nadvisory or consultancy relationship with any person engaged in public procurement \r\nactivity: \r\nProvided that where the Managing Director is a government servant, there \r\nshall be no such restrictions on his employment afte r his retirement or transfer from \r\nthe post of Managing Director. \r\n (8) The Managing Director shall not have a direct or indirect financial \r\ninterest or connection with a Company engaged in public procurement activity during \r\nthe term of his office and for a period of one year thereafter. \r\n (9) The Managing Director shall– \r\n (a) exercise administrative control over the personnel of the Authority; \r\n(b) exercise, in respect of the Authority, such other management, \r\nadministrative and financial powers as may be determ ined by the \r\nBoard; \r\n(c) submit the annual budget proposals of the Authority to the Board, \r\n(d) prepare the annual report of the Authority for the Board and the \r\nGovernment; \r\n(e) exercise powers as the Board may delegate to him; and \r\n(f) act on behalf of the Aut hority, in any emergency, subject to the \r\nobligation to report the action to the Board at its next meeting and to \r\nseek ratification of his action. \r\n9. Appointment and remuneration of t he third party evaluation firms .– (1) \r\nThe Authority may appoint a firm for  conducting a third party evaluation of public \r\nprocurement contracts of a Procuring Agency against payment of remuneration. \r\n (2) Subject to sub -section (3), the criteria for the selection and \r\nappointment of a firm for third party evaluation shall be prescribed. \r\n (3) A firm that submitted bid for the award of a public procurement contract \r\nof a Procuring Agency shall not be eligible for appointment as evaluator of the \r\ncontracts of the Procuring Agency. \r\n (4) The firm shall submit its evaluation report to the Authority. \r\n10. Training.– The Authority shall formulate training policies and launch training \r\nprogrammes for the relevant personnel of the Procuring Agencies.  \r\n11. Maintenance of Website.– (1) The Authority shall maintain a website for the \r\nprocurement activities. \r\n (2) The Procuring Agency shall update the procurement activities on the \r\nwebsite in the prescribed manner. \r\n12. Fund.– (1) The Authority shall establish a Fund to be known as the Public \r\nProcurement Fund. \r\n (2) The sources of income of the Fund shall be– \r\n(a) grants made by the Government; \r\n(b) donations, endowments and grants from any individual or organization \r\nexcept from those dealing with public procurement; \r\n(c) income from investment by the Authority; and \r\n(d) all other sums or properties which may in  any manner become payable \r\nto, or vest in the Authority. \r\n(3) The Authority shall keep, maintain and spend the Fund in the \r\nprescribed manner. \r\n(4) The Authority shall exercise prudence in all financial transactions. \r\n(5) The Authority shall spend the Fund for the purpose of– \r\n(a) paying an expenditure lawfully incurred by the Authority, relating to \r\nremuneration of its Members, employees, advisers and consultants of \r\nthe Authority, legal fees and costs as well as other fees and costs; \r\n(b) paying any other expense s, costs or expenditure properly incurred by \r\nthe Authority in the performance of its functions or exercise of its \r\npowers; \r\n(c) purchasing or hiring equipment, machinery and any other work and \r\nundertakings in the performance of its functions or exercise of i ts \r\npowers; \r\n(d) payment of a financial obligation; and \r\n(e) payment of an expense for carrying out the provisions of this Act. \r\n13. Power to obtain finances and receive grants .– The Authority may, with the \r\napproval of the Government, accept grants from entities both domestic and \r\ninternational, including multilateral agencies, except those connected with public \r\nprocurements, for meeting its obligations or performing its functions. \r\n14. Investment.– The Authority may invest its surplus funds in the prescribed \r\nmanner. \r\n15. Budget and accounts .– (1) The Managing Director shall maintain the \r\naccounts of the Authority in the prescribed manner. \r\n (2) The Managing Director shall prepare, for approval of the Government, \r\nby such date and in such form as may be specified by the G overnment, a statement \r\nshowing the estimated receipts and current expenditure and the sums required by \r\nthe Authority from the Government during the next financial year. \r\n16. Audit of the Authority .– (1) The Government shall appoint a firm of \r\nchartered accountants for the annual audit of the accounts of the Authority. \r\n (2) Annual audit report of the accounts of the Authority shall be laid before \r\nthe Board for approval. \r\n17. Information.– The Authority may call for an information required by it for \r\ncarrying out the purposes of this Act, from a person or an institution concerned with \r\nthe public procurement and the person or the institution shall provide the requisite \r\ninformation. \r\n (2) The Authority shall furnish information to the Government, as the \r\nGovernment may require. \r\n8\r\n[17A. Blacklisting.– (1) A procuring agency may, for a specified period and in the \r\nprescribed manner, debar a bidder or contractor from participating in any public \r\nprocurement process of the procuring agency, if the  bidder or contractor indulg es in \r\ncorrupt practice or any other prescribed practice. \r\n(2) The Managing Director may, in the prescribed manner, debar a bidder \r\nor contractor from participating in any public procurement process of all or some of \r\nthe procuring agencies for a specified period. \r\n(3) Any person, aggrieved from a decision of a procuring agency, may \r\nwithin prescribed period prefer a representation before the Managing Director. \r\n(4) A procuring agency or any other person, aggrieved from a decision of \r\nthe Managing Director, may wit hin prescribed period prefer a representation before \r\nthe Chairperson whose decision on such representation shall be final.] \r\n                                                 \r\n8Inserted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published i n the Punjab \r\nGazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.3. \r\n18. Annual report.– (1) The Authority shall, before the end of October, prepare \r\nits annual performance report of the preceding finan cial year which shall include \r\ninquiries and investigations made by the Authority during the financial year. \r\n (2) The Authority shall submit to the Government its annual audit report \r\nand the annual performance repot. \r\n (3) The Government  shall lay the annual  audit report and the annual \r\nperformance report in the Provincial Assembly of the Punjab. \r\n19. Ethical considerations .– A Procuring Agency shall observe ethical \r\nstandards and principles of conduct laid down by the Authority. \r\n20. Appointment of officer s and staff, etc .– The Authority may appoint such \r\nofficers, servants, advisers, consultants and experts, as it may consider necessary \r\nfor performance of its functions in accordance with the criteria and procedure as may \r\nbe provided in the regulations. \r\n21. Members, offic ers, etc. to be the public servants .– The Chairperson, \r\nMembers, Managing Director, officers, servants, advisers, consultants and experts of \r\nthe Authority shall, when acting or purporting to act in pursuance of any of the \r\nprovisions of this Act or the rules and regulations made there under, be deemed to \r\nbe the public servants within the meaning of section 21 of the Pakistan Penal Code, \r\n1860 (XLV of 1860). \r\n22. Delegation.– The Board may, by such conditions and limitations as it may \r\ndeem fit to impose, delegate any of the functions or powers of the Authority to the \r\nManaging Director, or one or more Members or any of the officers of the Authority \r\nexcept the power to– \r\n(a) approve audited accounts of the Authority; \r\n(b) recommend exemption under section 23; and  \r\n(c) make, amend or repeal regulations. \r\n9\r\n[23. Exemption.– (1) The Board may, for reasons to be recorded in writing, \r\nrecommend to the Government to exempt any public procurement from the \r\napplication of any rule or regulation made under this Act. \r\n(2) The Government may, on the recommendation of the Board and by \r\nnotification, exempt application of any rule or regulation made under the Act in any \r\npublic procurement by specifying alternate mode of the public procurement. \r\n(3) The notification under subsectio n (2) shall immediately be published in \r\nthe official Gazette and on the websites of the Government and the Authority.] \r\n24. Indemnity.– No suit, prosecution or other legal proceedings shall lie against \r\nthe Authority, the Board , the Chairperson or any member , officer, servants, advisers \r\nor consultants of the Authority in respect of anything done in good faith in public \r\ninterest or intended to be done under this Act, the rules or the regulations. \r\n                                                 \r\n9Substituted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab \r\nGazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.4. \r\n25. Common seal .– (1) The Managing Director or such other person , as the \r\nChairperson may authorize shall keep the common seal of the Authority. \r\n (2) The seal shall be authenticated in the manner as may be prescribed \r\nand a document, pertaining to the public procurement, authenticated with the seal of \r\nthe Authority shall be admissible as evidence of the contents of the document. \r\n26. Rules.– The Government may, by notification, make rules for carrying out the \r\npurposes of this Act. \r\n27. Regulations.– Subject to the provisions of the Act and the rules, the Authority \r\nmay make regulations for giving effect to the provisions of this Act. \r\n28. Repeal and Validation.– (1) The Punjab Procurement Regulator y Authority \r\nOrdinance, 2007 (XIX of 2007) is hereby repealed. \r\n (2) Notwithstanding anything contained in any law, anything done, \r\nproceedings of action taken, order or rule made, liability incurred or right acquired \r\nunder the Ordinance XIX of 2007 or purported to have been done, taken, made, \r\nincurred or acquired under that Ordinance , from the date of promulgation of the \r\nOrdinance till the coming into force of this Act, shall be deemed to have been done, \r\ntaken, made, incurred or acquired under this Act.",
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