Punjab’s Model handcart project faces corruption allegations
LAHORE: The Punjab government’s Model Handcart project launched by Chief Minister Maryam Nawaz to organise street vending and ease traffic congestion faces allegations of corruption, favouritism and financial mismanagement.
The welfare initiative was supposed to provide 1,000 hand carts to deserving street vendors free of cost at 19 designated locations in Lahore.
Documents obtained by Dawn reveal significant flaws in the implementation strategy adopted by the Municipal Corporation Lahore (MCL).
The first phase of the project involved the procurement of 1,000 handcarts at an estimated cost of Rs 150 million. Five firms participated in the bidding process, with M/S Weld Engineers submitting the lowest bid of Rs 98,000 per cart.
Despite being the most competitive bidder, M/s Weld Engineers was allegedly disqualified after MCL officials removed a crucial document from their submission. This paved the way for the contract to be awarded to Rehman and Brothers at an inflated price of Rs 148,700 per cart, resulting in an additional burden of Rs 50 million on the public exchequer.
Sources revealed that Rehman and Brothers subcontracted the work to M/s Weld Engineers at their original lowest bid, pocketing the excess amount. This alleged collusion between MCL officials and contractors has sparked outrage.
Adding to the controversy, street vendors have accused MCL officials of charging money from them for the handcarts, despite the government’s promise to distribute them free of cost. Several vendors claimed that they were forced to pay between Rs10,000 and Rs25,000 for each new cart, while their old carts were confiscated.
In response to the vendors’ complaints, Punjab Government Special Monitoring Unit head Amjad Hafeez tweeted that disciplinary action had been taken against an MCL Regulation Wing official.
However, sources allege a junior employee was penalised, while senior officials involved in the distribution process remained untouched. As the first phase of the project remains mired in controversy, the second phase has already commenced, raising fresh concerns about its execution.
According to an advertisement issued by MCL Administrator Syed Moosa Raza in October 2024, the estimated cost per cart was increased to Rs150,000. Work orders for another 1,000 carts have now been issued, bringing the total project cost to Rs200 million.
The bidding process for the second phase has also come under scrutiny, with only one firm participating. This stands in stark contrast to the first phase, where five firms had competed for the contract. The Rs50 million increase in cost within just three months, coupled with lack of competition, fueled speculations of cartelisation and manipulation. Significant alterations in the tender conditions between the two phases have raised eyebrows.
Lahore Deputy Commissioner Syed Musa Raza defended the project, stating that the e-tendering process was transparent. He claimed that M/s Weld Engineers, the lowest bidder in the first phase, had withdrawn from the process.
Mr Raza also justified the price increase in the second phase, citing additional material used in the manufacturing process, such as steel rod coverings.
However, the sources alleged that cost escalation of Rs50 million in the first phase and like amount in the second phase strongly indicate financial irregularities.
Published in Dawn, March 9th, 2025