Audit Report Reveals NTC Paid 25% Extra in Firewall Hardware Deal

The already controversial firewall has caught up in another controversy. This time, it is related to the procurement of the hardware. A government audit has raised red flags over how the National Telecommunication Corporation (NTC) handled the purchase of firewall hardware worth crores of rupees.

Bids for the firewall were opened on August 16, 2023, with three companies competing:

• M/s Khazana: Rs 164.8 million (lowest)

• M/s Pronet: Rs 205.2 million (second lowest)

• M/s Inbox: Rs 324.3 million (highest)

Lowest Price, Then a U-Turn

The audit revealed that M/s Khazana first quoted the lowest price. But two days later, the company emailed NTC, claiming there was a “calculation error” in its bid. Strangely, the company’s “corrected” price shot up to Rs 279.8 million, far higher than its original offer.

Auditors checked the documents and found no sign of any arithmetic mistake. They concluded that the company was simply trying to raise its price after seeing the competition.

Higher Cost for Government

Instead of sticking with Khazana, the evaluation committee rejected its bid and moved to the next option, M/s Pronet, whose offer was 25% (Rs 40 million) higher.

The audit says this decision meant taxpayers ended up paying much more than necessary.

Security Money Not Confiscated

Under procurement rules, Khazana’s bid security deposit of Rs 3.3 million should have been forfeited for backing out. But NTC did not seize the amount because Khazana took the matter to court.

NTC firewall audit: Lapses in Oversight

Auditors also criticized NTC for:

• Not checking if the prices were reasonable compared to the market.

• Not investigating whether the companies may have engaged in collusion, as required by public procurement rules.

The report concluded that the firewall deal was “irregular” and reflected poor oversight. It called for stricter enforcement of procurement rules to protect public money.

A Broader Pattern of Oversight Failures

The firewall deal is not an isolated case. Recent audits have uncovered serious irregularities across Pakistan’s telecom and IT sector.

• Zong’s Rs 53.5 billion spectrum misuse, flagged as a major regulatory failure.

• Rs 6.58 billion in overcharging by Jazz, which auditors say went unchecked.

Now, the NTC’s firewall procurement controversy adds to the list, exposing how government agencies are struggling to implement policies transparently and maintain a fair business environment.

The issue gained attention when journalist Kismat Khan (@KismatZimri) shared the audit findings on X (formerly Twitter), questioning how such irregularities were allowed in a sensitive IT procurement.