LAHORE: The district administration has rejected all allegations in the Model Handcart distribution among street vendors.

The Punjab government had allocated a sum of Rs150 million to give 1,000 handcarts to street vendors with an aim to resolving encroachment issues and supporting low-income groups.

The project was marred by allegations of corruption and mismanagement after vendors and bidding companies accused Metropolitan Corporation Lahore (MCL) officials of demanding bribe and favouring certain contractors.

The government also launched the second phase of the project and increased the cost from Rs150 million to Rs200 million.

The companies that participated in the bidding process of the first phase alleged that the lowest bidder was unfairly excluded from the bid. They also raised concerns over increase in the price of handcarts in the second phase of the project, rising from Rs150,000 to Rs200,000 per cart and said that only one company had participated in the bidding of the second phase. The government will have to distribute another 1,000 carts among vendors under the second phase.

Deputy Commissioner Syed Musa Raza said that the bidding process of the first phase was completely transparent as it was conducted through e-tendering in which any contractor from all over Pakistan could upload his bidding.

The DC also shared documents with Dawn which stated that M/ S Wielder Engineer, the lowest bidder, was not awarded contract as its work orders uploaded on E-PADS -- upon verification from PD Lesco, Lahore -- were found bogus and fabricated, resulting in his disqualification. He said the corporation had started investigation against the M/S Wielder Engineers and is facing black listing proceedings.

He also addressed the price increase of cart project and attributed it to higher taxation and procurement costs. He said that in the first phase, the handcart rate was Rs147,289, with a 5pc provincial sales tax (PST) of Rs7,365, bringing the total to Rs154,654.

In the second phase, the base rate rose to Rs176,022, with a 16pc PST of Rs28,163, resulting in a total cost of Rs 204,186.

Raza stated that the price difference was due to increased specifications and higher taxes.

He clarified that the tax rate increased from 5pc to 16pc because the first phase was funded by the Punjab government, while the second phase is being financed by MCL’s own budget.

Published in Dawn, March 13th, 2025