Delegation of Financial Power Rules for auction

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Deleg. of Powers 1-7-2016 Auction Powers

UNDER PUNJAB DELEGATION OF FINANCIAL POWER RULES, 2006 AMENDED UP TO  26-MARCH, 2010

SECOND SCHEDULE

[See Rule 3(1)]

PART–I POWERS COMMON TO ALL DEPARTMENTS UNDER S.NO.11

Powers to sell surplus or unserviceable motor vehicles, T&P, machinery, equipment, spares, stores / stocks etc. by auction.

 

.           (i) Administrative Department.                        Full Powers.

(ii) Officers in Category-I in District

     Disposal Committee (DDC).                      Full Powers.

(iii) Officers in Category-I.                              Upto Rs.0.200 million at a time.

(iv) Officers in Category-II.                             Upto Rs.40,000/- at a time.

(v) Officers in Category-III.                            Upto Rs.10,000/- at a time.

 

Note – I: The amounts indicated above refer to un-depreciated book value (cost of purchase). Further, reserve price for auction of condemned / surplus / stolen vehicles, machinery, tools / plants and durable goods may be assessed in accordance with the yardstick given in para 4.31 of B&R Code read with Finance Department’s letter No.FD(FR)II-36/79, dated 12th July, 2007.

 

Note II: – Procedure of auction as notified by Finance Department’s letter No.FD(FR) II-36/79, dated 06-04-2005 shall be followed for auction through District Disposal Committee (DDC) when the assessed value of auctioning items is exceeding Rs.0.200 million.

 

Note III: – Open auction will be held for disposal of condemned / surplus items when the assessed value of auctioning items upto Rs.0.200 million.

 

 

GOVERNMENT OF THE PUNJAB,

FINANCE DEPARTMENT

NOTIFICATION: No. FD (FR) II-36/79.

 

 In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab has been pleased to approve the constitution of the District Disposal Committee and the procedure for auction / disposal of unserviceable, surplus and condemned machinery / equipment / stores in the manner as prescribed hereunder:-

 

  1. The DCO of the District Government / Category-I

Officer of the concerned Department, as the case may be.             Convener

  1. Superintending Engineer Irrigation of the

concerned Zone or his representative not below

the rank of a BS-18 Officer.                                                               Member

  1. A representative of Agriculture Engineering

Department not below the rank of a BS-18 Officer.                          Member

  1. The EDO (W&S) or his representative not below

the rank of a BS-18 Officer.                                                               Member

  1. A representative of the department not below the

rank of a BS-18 Officer.                                                                     Member

 

  1. The Executive District Officer (F&P) Member/Secretary

 

The function of the District Disposal Committee would be to dispose of unserviceable and redundant equipment / machinery that have been declared unserviceable or surplus in the Department by the competent authority of the respective department.

 

  1. The Committee would adopt the following course of action: –

 

  1. i) To Dispose of surplus machinery / equipment by inviting sealed offers / tenders after due publicity. The District Committee would have special powers to accept or reject an offer.
  2. ii) The tenderers would be required to deposit earnest money @ 2% of the value of their offers. This would be in the form of “deposit at call” or “Bank Draft” in the name of Convener District Disposal Committee.

iii) Each Department will furnish list of equipment / machinery with full description, its conditions, location and reserve price (worked out in the light of Para 4.31 of B&R Code) to the Secretary, District Disposal Committee on month-to-month basis. The lists, after scrutiny, and consolidation would be copied for supply to the bidders at Rs.50/- per page.

  1. iv) The sale proceeds of tenders and equipment would be credited to Punjab Government Account No.1 under Revenue head: –

 

1000000 NON-TAX RECEIPTS

1300000 MISCELLANEOUS RECEIPTS 188

391000 OTHER RECEIPTS

1391002 OTHER RECEIPTS – SALES OF

STORES AND MATERIALS

 

  1. v) The General terms and conditions for sale would be drafted by each Committee and got cleared from the Convenor before calling tenders.
  2. vi) The cost of Advertisement / Auction, if any, would be borne by the respective Department, the machinery / tools, plants etc. whereof are to be auctioned.

vii) The Convenor would submit quarterly progress reports to the respective Administrative Department and Finance Department for the purpose of monitoring.

viii) The record of sale proceedings would be retained by the respective Department for audit scrutiny etc.

BY ORDER OF THE GOVERNOR

SALMAN SIDDIQUE

Secretary to Government of the Punjab,

Dated Lahore the 6th April, 2005 Finance Department

  1. & DATE EVEN.

A copy is forwarded for information and necessary action to:-

  1. Accountant General Punjab, Lahore.
  2. All District Accounts Officers in the Punjab /Treasury Officer, Lahore.
  3. The Director General (Civil) Audit, Punjab, Lahore.
  4. The Director General (Works), Audit, Punjab, Lahore.
  5. The Director General (District Governments) Audit, 4-B, Lyton Road,Lahore.

       Sd/-

( RAB NAWAZ )

DEPUTY SECRETARY (MONITORING)

  1. & DATE EVEN.

A copy is forwarded for information and necessary action to:-

  1. Administrative Secretaries to the Government of the Punjab.
  2. Principal Secretary to Governor, Punjab, Lahore.
  3. Principal Secretary to Chief Minister, Punjab, Lahore.
  4. All Heads of Attached Departments, Govt. of the Punjab.
  5. All Zila / Tehsil / Town Nazims in the Punjab.
  6. All District Coordination Officers in the Punjab.
  7. All Additional Secretaries / Deputy Secretaries in Finance Department.

Sd/-

( RAB NAWAZ )

DEPUTY SECRETARY (MONITORING)

 

 

 

No.FD(FR)II-36/79

GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore the 12th July, 2007

From

Sohail Ahmad,

Secretary,

Government of the Punjab,

Finance Department

To

  1. i) The Chairman, Planning & Development Board, Punjab, Lahore.
  2. ii) All the Administrative Secretaries, Government of the Punjab.

iii) All the DCOs, City / District Governments in the Punjab.

  1. iv) All the Heads of Attached Departments, in the Punjab.
  2. v) The Registrar, Lahore High Court, Lahore.
  3. vi) The Chairman (TEVTA), Punjab, Lahore.

 

Subject: –         ASSESSMENT OF RESERVE PRICE OF VEHICLES / MACHINERY

UNDER PARA 4.31 BUILDING & ROAD (B&R)CODE.

Sir,

I am directed to invite your kind attention to serial no.11 under Part-I – Powers Common To All Departments of the Second Schedule to the Punjab Delegation of Financial Powers Rules, 2006 whereby Administrative Departments and subordinate officers of certain categories are vested to sell surplus or unserviceable motor vehicles, T&P, machinery, equipment and stores by auction upto the extent as mentioned therein against each. Further, it was clarified vide Finance Department’s notification No. even, dated 6th April, 2005 that the assessment of depreciated book value shall be made in accordance with para 4.31 of B&R Code.

 

  1. Since the issuance of the aforesaid instructions, certain quarters have raised queries and sought clarification with regard to assessment of reserve price of those vehicles / machinery etc. which have been declared surplus / replaceable, in the prescribed manner, but are still useable or have been rendered as un-serviceable and further the assessment of reserve price of those vehicles / machinery which have been stolen or mis-appropriated or damaged and where the provisions under para 4.31 are silent.
  2. The matter was examined in the Finance Department and it has been decided, after consultation with the line departments i.e. Agriculture, Communication & Works, Irrigation & Powers and Public Health Engineering Departments, that: –

 

  1. i) The base line for fixation of reserve price of a vehicle / machinery etc. which has completed the prescribed quantum of distance / hours and declared surplus or replaceable, but is further useable, will be fixed at 25% to 40% of the book value;
  2. ii) The reserve price of a vehicle / machinery etc. which has completed the prescribed amount of distance / hours and declared unserviceable, i.e. not useable even after repair, will be fixed keeping in view the market value; iii) The reserve price of a vehicle / machinery which has covered the prescribed quantum of distance / hours and has been stolen, misappropriated, or damaged, will be fixed at not less than 50% of the book value;
  3. iv) The reserve price of a vehicle / machinery which has not covered the prescribed quantum of distance / hours and has been stolen, misappropriated or damaged will be fixed at not less than 75% of the book value;
  4. v) The departments will dispose of the store articles etc. not mentioned in para 4.31 of B&R Code, as per their departmental procedures, keeping in view the market value of such stores;
  5. vi) The words “tools” mentioned in para 4.31 ibid will include the words ‘tools / implements / attachments’ and the words ‘scientific instruments’ will include the words ‘scientific / survey instruments’;

vii) A formula for calculating the progressive cost of depreciation on year to year basis as given in Note-2 under para 4.31 ibid will continue to be applied till suitably substituted and

viii) The yardstick of 2 lac kms and 2.5 lac kms for replacement of vehicles fixed by the Finance Department in the Punjab Delegation of Financial Powers Rules, 2006, will continue;

 

  1. I am, therefore, directed to request you take further necessary action accordingly.

Sd/-

 (RAB NAWAZ)

DIRECTOR (MONITORING)

  1. & DATE EVEN:

A copy is forwarded for information and necessary action to: –

  1. The Accountant General, Punjab, Lahore.
  2. The Director General (Civil) Audit, Punjab, Lahore.
  3. The Director General (Works), Audit, Punjab, Lahore.
  4. The Director General (District Government) Audit, Punjab, 4- A Lyton Road, Lahore.
  5. The Director General (Commercial) Audit, Punjab, Lahore.
  6. The Provincial Director, Local Fund Audit, Punjab, 6-Begum Road, Lahore.
  7. All District Accounts Officers in the Punjab/Treasury Officer, Lahore.

        Sd/-

( RAB NAWAZ )

DIRECTOR (MONITORING)

  1. & DATE EVEN:

A copy is forwarded for information and necessary action to: –

  1. The Principal Secretary to Governor, Punjab, Lahore.
  2. The Principal Secretary to Chief Minister, Punjab, Lahore.
  3. The Additional Secretary (Staff) to Chief Secretary, Punjab.
  4. All District & Session Judges in the Punjab.
  5. All Additional Secretaries/Deputy Secretaries in Finance Department.
  6. Superintendent, Government Printing Press, Lahore for gazette notification.

Sd/-

( RAB NAWAZ )

DIRECTOR (MONITORING)

 

 

 

 

No.FD(FR)-II-36/79

GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore the 11th November, 2008

 

To

The Section Officer (General),

Government of the Punjab,

Information, Culture & Youth Affairs Department.

 

Subject: – AUCTION OF UNSERVICEABLE / SURPLUS ITEMS.

 

Please refer to your letter No.E&A(INF) 9-81/82-SK, dated 10.09.2008, on the subject as cited above.

  1. Finance Department observes that District Government may adopt auction procedure through wide publicity where values of condemned stocks / stores exceed the limit of Rs.one lac. In cases, where value of stores / stocks is below the limit of Rs.one lac, auction may be made through an auction Committee, internally Constituted by an Officer in Category-I.

Sd/-

ACCOUNTS OFFICER (FR)

 

No.FD(FR)-II-36/79

GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore the 3rd January, 2009

 

To

The Section Officer (G),

Government of the Punjab,

Information, Culture & Youth Affairs Department.

 

Subject: – AUCTION OF UNSERVICEABLE / SURPLUS ITEMS.

 

Kindly refer to your letter No.SO.E&A(INF)9-81/82(SK), dated 5.12.2008, on the subject as cited above.

 

  1. Finance Department has delegated full powers to Administrative Departments to sale surplus or unserviceable motor vehicles, T&P, machinery, equipment, spares and stores by auction vide Sr. No.11, under Punjab Delegation of Financial Powers Rules, 2006. The Administrative Departments could auction these stores, articles, condemned vehicles, equipments, machinery etc. at their own, in most transparent manner i.e. at competitive rates through auction by Auction Committee constituted by the Administrative Secretary.
  2. Finance Department has circulated some guidelines for assessing the baseline of Reserve price for condemned vehicles, equipment, stores etc. vide letter No.FD(FR)II-36/79, dated 12.07.2007 (copy enclosed).

 

  1. Further action may be taken accordingly.

    Sd/-

ACCOUNTS OFFICER (FR)

 

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