Islamabad, Mar 10 2025: The Bank of Azad Jammu & Kashmir (BAJK) is moving forward with a Rs. 1.7 billion Core Banking System contract, despite mounting concerns over alleged procedural discrepancies.
Reports suggest that the bidding process for the project, initiated in early 2022, faced multiple extensions, ultimately attracting only two contenders Iconsult and another unnamed firm.
Insiders claim that the contract was strategically positioned for an Islamabad-based consultancy firm from the outset, raising doubts about the fairness of the process. It is alleged that key members of BAJK’s Board of Directors (BOD) influenced the outcome.
Ensuring that the preferred company secured the contract, even if it meant overlooking crucial stipulations in the Request for Proposal (RFP) and Public Procurement Regulatory Authority (PPRA) rules.
One of the most controversial aspects of the selection process was the mandatory project demonstration, a critical component of the technical assessment. Sources reveal that Iconsult initially failed to meet the required standards during its demo.
On December 17, 2024, BAJK formally awarded the contract to Iconsult, setting a requirement for the company to submit a performance security guarantee within 15 days of receiving the official notification.
However, reports indicate that Iconsult did not fulfill this requirement within the stipulated timeframe. Despite this, BAJK did not revoke the contract, raising further concerns about preferential treatment.
The inconsistencies in BAJK’s handling of the process have fueled suspicions of bias, particularly as the bank continues to accommodate Iconsult despite its failure to meet contractual obligations.
The delays in rolling out the Core Banking System have had broader implications, including setbacks in BAJK’s efforts to obtain Scheduled Bank status from the State Bank of Pakistan (SBP).
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This has further dented the institution’s credibility and operational progress. Adding to the confusion, The Bank of Azad Jammu & Kashmir BAJK’s interpretation of the contract’s timeline remains inconsistent.
While the Letter of Award clearly states a 15-day deadline from issuance, the bank later revised its stance, claiming the deadline applied 15 days after contract signing. Such contradictions have intensified concerns regarding procedural mismanagement.
Following multiple hearings and extensive reviews of the evidence, the court ruled in BAJK’s favor, affirming that the procurement process adhered to the required legal and regulatory standards.
According to BAJK, these investigations reaffirmed the transparency and legitimacy of the selection process.
The Acting President defended the procurement decision, asserting that Iconsult, a local partner of a Singapore-based global firm, met all procedural and technical requirements.
The Bank of Azad Jammu & Kashmir BAJK maintains that the procurement process has not hindered its pursuit of Scheduled Bank status and that it continues to collaborate with SBP to fulfill the necessary requirements.
The bank reaffirmed its commitment to transparency, compliance with legal frameworks, and institutional progress.
