ROYAL PALM CLUB PAKISTAN
NA body directs NAB to investigate ex-army officials
* Orders recovery of PR money from Beaconhouse School System
By Ijaz Kakakhel
ISLAMABAD: The National Assembly’s (NA) Standing Committee on Pakistan Railways on Thursday directed the National Accountability Bureau (NAB) to conduct an inquiry against former military officials involved in the Royal Palm Golf Club case and privatisation of railway schools.
The committee met with Ayaz Sadiq in the chair on Thursday. NAB officials informed the committee that the lease of Royal Palm Golf Club was not transparent, adding that former military officials, including General Javed Ashraf, General Saeed Zaffar, General Butt and Brigadier Akhter, were involved in the scandal. The meeting was also informed that initially 103 acres, which were later extended to 140 acres, were awarded through a non-transparent process, ignoring the highest bid on nominal lease to a joint venture consisting of Maxcorp Development SDN, BHD, Hasnain Construction Co and Unicon Consulting services (pvt) Ltd.
NAB told the committee that now the Royal Palm Golf Club has agreed on raising the lease amount of railways land.
After increasing the lease amount, Pakistan Railways (PR) will recover Rs 16.182 billion from the contractor of Royal Palm Golf Club.
During the NAB investigation, Mainland Husnain Pakistan Limited (MHPL) came forward for enhancement of the rates, which will give a benefit of Rs 16.18 billion to PR. NAB will recover the amount and will hand it over to PR. NAB told the committee that PR awarded two bulk scrap contracts in a “very non-transparent manner” such as the bulk scrap contract of tender 607 and bulk scrap contract of tender 588/B.
The bureau has recovered Rs 79.6 million from contractors while the arrested accused were released with the conditions that they will leave the remaining scrap of the contracts at present market rate. Sale of remaining scrap of these two tenders at the prevailing market rate will give benefit of Rs 500 million to PR.
NAB further said that between 2003 and 2007, PR procured 69 locomotives from China. The manufacturer provided three years’ spares. In 2009, a PR executive committee negotiated maintenance contract for the purchase of Chinese locomotives at abnormally high rates, causing a loss of Rs 520 million. This resulted in complete halt of railways engine as allocation for complete tenure was spent on purchase of spares for Chinese locomotives.
The committee said that for the inventory, the PR management imported those items, which still remain unutilised. One PR spare part, whose cost was $74 in 2008, was imported at $855 per unit, an exorbitant price, which incurred the national exchequer huge losses. NAB also briefed the committee about contract of PR for 2,000 metric tonnes of pig iron (used in PR engine). Four firms participated but the PR authorities ignored the lowest bidder, the second-lowest bid was declared successful but the contract was awarded to the third lowest-bidder firm Pakistan Steel Traders. The PR also made advanced payment, which is totally against the rules.
The committee expressed concern over the theft of rail engine oil worth Rs 1.5 million in Lahore and Rawalpindi and directed NAB to probe the matter as well. The committee also asked NAB to recover the amount of PR from Beaconhouse School System, which took over PR schools but could not clear PR dues.
* Orders recovery of PR money from Beaconhouse School System
By Ijaz Kakakhel
ISLAMABAD: The National Assembly’s (NA) Standing Committee on Pakistan Railways on Thursday directed the National Accountability Bureau (NAB) to conduct an inquiry against former military officials involved in the Royal Palm Golf Club case and privatisation of railway schools.
The committee met with Ayaz Sadiq in the chair on Thursday. NAB officials informed the committee that the lease of Royal Palm Golf Club was not transparent, adding that former military officials, including General Javed Ashraf, General Saeed Zaffar, General Butt and Brigadier Akhter, were involved in the scandal. The meeting was also informed that initially 103 acres, which were later extended to 140 acres, were awarded through a non-transparent process, ignoring the highest bid on nominal lease to a joint venture consisting of Maxcorp Development SDN, BHD, Hasnain Construction Co and Unicon Consulting services (pvt) Ltd.
NAB told the committee that now the Royal Palm Golf Club has agreed on raising the lease amount of railways land.
After increasing the lease amount, Pakistan Railways (PR) will recover Rs 16.182 billion from the contractor of Royal Palm Golf Club.
During the NAB investigation, Mainland Husnain Pakistan Limited (MHPL) came forward for enhancement of the rates, which will give a benefit of Rs 16.18 billion to PR. NAB will recover the amount and will hand it over to PR. NAB told the committee that PR awarded two bulk scrap contracts in a “very non-transparent manner” such as the bulk scrap contract of tender 607 and bulk scrap contract of tender 588/B.
The bureau has recovered Rs 79.6 million from contractors while the arrested accused were released with the conditions that they will leave the remaining scrap of the contracts at present market rate. Sale of remaining scrap of these two tenders at the prevailing market rate will give benefit of Rs 500 million to PR.
NAB further said that between 2003 and 2007, PR procured 69 locomotives from China. The manufacturer provided three years’ spares. In 2009, a PR executive committee negotiated maintenance contract for the purchase of Chinese locomotives at abnormally high rates, causing a loss of Rs 520 million. This resulted in complete halt of railways engine as allocation for complete tenure was spent on purchase of spares for Chinese locomotives.
The committee said that for the inventory, the PR management imported those items, which still remain unutilised. One PR spare part, whose cost was $74 in 2008, was imported at $855 per unit, an exorbitant price, which incurred the national exchequer huge losses. NAB also briefed the committee about contract of PR for 2,000 metric tonnes of pig iron (used in PR engine). Four firms participated but the PR authorities ignored the lowest bidder, the second-lowest bid was declared successful but the contract was awarded to the third lowest-bidder firm Pakistan Steel Traders. The PR also made advanced payment, which is totally against the rules.
The committee expressed concern over the theft of rail engine oil worth Rs 1.5 million in Lahore and Rawalpindi and directed NAB to probe the matter as well. The committee also asked NAB to recover the amount of PR from Beaconhouse School System, which took over PR schools but could not clear PR dues.
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