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REFERENCE / COMPLAINT NO. 9/2006
Reference dated July 29, 2006 – Multimillion-dollar scam to hit Railways
The Chairman
National Accountability Bureau
Islamabad
Pakistan Peoples Party…………………………COMPLAINANT
VS
1. Lt. General (Retd) Javed Ashraf Qazi, the then Federal Minister for
Railways.
2, Lt. General (Retd) Saeeduz Zafar, the then Chairman, Pakistan Railways.
3. Maj. General (Retd) Hamid Butt, the then General Manager Administration,
Pakistan Railways…………….………… ACCUSED / RESPONDENTS
Subject: COMPLAINT UNDER SECTION 5 AND 18 (B) SUB SECTION-II OF THE
NATIONAL ACCOUNTABILITY BUREAU (NAB) ORDINANCE 1999, AGAINST THE HOLDERS OF
PUBLIC OFFICE FOR PUNISHMENT UNDER SECTION 10 OF NAB ORDINANCE FOR CAUSING
HUGE FINANCIAL LOSS TO THE NATIONAL EXCHEQUER BY CORRUPTION AND CORRUPT
PRACTICES
FACTS AND GROUNDS:
1. That the respondents were deeply involved in scam of million Dollars in
the purchase of 1300 Wagons purchased in the year 2001 @ $ 44,055 per wagon
whereas the wagons were available in the year 2006 @ $ 39,447 per wagon as
stated by Sh. Rasheed Ahmad, Federal Minister for Railway in National
Assembly on 16-6-2006 and printed in the daily “The News” on 17-6-2006.
2. That the respondents were facing charges of purchasing 1300 containers
flat wagons worth of $ 57 millions from China as confirmed on the floor of
the National Assembly on 16-6-2006 in 2001 at much higher rates i.e. $ 4,608
per wagon, than it’s current market price in 2006.
3. That the Minister, however, did not give any justification to the Lower
House as demanded by MNA Sardar Ayaz Sadiq regarding payment of an extra
amount of $ 4,608 per wagon over and above the actual price or who pocketed
the money of $ 5.9 million may be much more in 2001 in one deal.
4. That the fresh scam surfaced in April 2006 when the Ministry of Railways
came to know that these 1,300 wagons were purchased at $ 44,055 per unit in
2001 by the ministry and were available at $ 39,447 per unit in 2006
irrespective of the rise in cost of manufacturing in the shape of oil and
electricity during the last five years.
5. That an earlier $100 million controversial deal of the ministry regarding
purchase of defective Chinese locomotives is yet to die down despite its
recent statement in the subcommittee of the Public Accounts Committee by
retired colonel Ghulam Rasool Sahi now MNA of ruling Party PML-Q as chairman
sub committee of Parliamentary Public Accounts Committee, after hearing the
arguments from the secretary railway Mr. Shakeel Durani passed a judgment
for senior’s relief though there was misconduct in the procurement of
Locomotives, the then administration had made the deal in good faith
therefore this issue stand settled”. Although this deal played a role to
murder and injure the passengers on the rail tracks in accidents & secretary
railway Mr. Shakeel Durani informed in categorical terms that rules were
seriously violated.
6. That as the Audit representative stressed in an other meeting of the Sub
Committee of Parliamentary Public Accounts Committee published in daily “The
Dawn” dated 26-5-2006 that the Law Ministry had clearly stated in the
recommendations sought by the sub committee of Public Accounts Committee
that NAB could proceed against retired army officers involved in corrupt
practices during their services under section 9 of the NAB Ordinance 1999.
7. That the GHQ has already expressed its inability stating that since the
officers had been retired from the army service, it could not take action
against them as printed in the last lines of “The News” press clipping
printed on 26-5-2006.
8. The above facts have published in the daily “The News” dated 17-6-2006
(press clipping attached)
9. Respondents in this complaint do fall within the ambit of NAB Ordinance
1999 for the purposes of investigation trial and punishment.
10. The Respondents are reportedly guilty of corruption and corrupt
practices as a Federal Minister for Railway, Chairman Railway and General
Manager Administration Railway abuse of power as defined in Section 9 of the
Ordinance and as such are subject to punishment under Section 10 of the
Ordinance based upon the following facts and grounds:
CONCLUSION:
Based on the above facts and grounds, the respondents have shown willful
indulgence in corrupt practices under Section 9 of the Ordinance. Such
persons are subject to punishment under Section 10 of the NAB Ordinance
1999.
As such the Chairman, National Accountability Bureau, is called upon to
initiate investigation in connection with matters set out herein above and
further proceed to file a Reference against the respondents for violating
the provisions of Section 9 of the Ordinance punishable under Section 10 of
the Ordinance in competent court of law and proceed against those concerned
for violating Section 9 of the NAB Ordinance 1999.
Complainant
Pakistan Peoples Party
Through:
Amjad Iqbal Qureshi
Advocate
Dated: Islamabad : 29 July 2006
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Another multimillion-dollar scam to hit Railways
The NEWS dated 17 June 2006
By Rauf Klasra
ISLAMABAD: Another multimillion-dollar scam is about to explode in the
Ministry of Railways after its Minister Sheikh Rashid Ahmed confirmed on the
floor of the National Assembly on Friday that Pakistan had purchased 1,300
containers flat wagons worth $57 million from China in 2001 at much higher
rates, ie $4,608 per wagon, than its current market price.
The minister, however, did not give any justification to the Lower House as
demanded by MNA Sardar Ayaz Sadiq regarding payment of an extra amount of
$4,608 per wagon over and above the actual price, or who pocketed the
difference money of $5.9 million in one deal.
The fresh scam surfaced in April 2006 when the Ministry of Railways came to
know that these 1,300 wagons, which were purchased at $44,055 per unit in
2001 by the ministry were astonishingly available at $39,447 per unit in
2006 irrespective of the rise in cost of manufacturing in the shape of oil
and electricity during the last five years.
To the astonishment of the ministry officials, they received bids of $39,447
per wagon, $4,608 less per wagon, five years down the road than those
purchased in 2001. An earlier $100 million controversial deal of the
ministry regarding purchase of defective Chinese locomotives is yet to die
down despite its recent settlement in the subcommittee of the Public
Accounts Committee in the name of “good faith”.
Documents placed before the National Assembly during the question hour
reveal that the Pakistan Railways paid over $5.9 million more to the wagon
supplier from China in 2001 to buy 1,300 wagons worth $57 million. These
documents confirmed the doubts that a few million dollars might have changed
hands at the time of finalisation of the deal between the Railways Ministry
and the Chinese firm in 2001.
Earlier, MNA Sardar Ayaz Sadiq had asked whether or not it was fact that the
tender for railway wagons freight awarded in April 2006 was considerably
less than the contract signed during the year 2001 despite escalation in
fuel and electricity charges. MNA Sardar Ayaz wanted to know the
justification of price difference in these two deals.
Replying to the question, Rashid said the Pakistan Railways had floated an
international tender for procurement and manufacturing of 300 High Capacity
Container Flat wagons in January 2006. Tenders were opened on April 10,
2006. The minister said as per technical evaluation report, all the six
offers were declared technically suitable. The financial bids of the
technically suitable bidders were opened on April 19. The bids are still
under scrutiny and the tender has not been finalised and no contract awarded
so far.
Rashid said the ministry received six bids, one each from Ukraine, Iran,
Egypt and two from China. However, the lowest bid was given by a Chinese
firm M/S Beijing Research and Design Institute China. The company has
offered to provide 300 wagons at a rate of $39,447 per unit against $44,055
per unit price agreed in 2001. Thus, there is a clear difference of $4,608
per wagon in the deal struck in 2001 and one now under consideration of the
ministry.
An official of the Railways Ministry said on condition of anonymity that
actual price of per unit wagon in 2001 should have been lesser because
purchase of the size of the deal when 1,300 wagons worth $57million were
purchased against the 300 wagons being purchased in 2006. Likewise, the per
unit cost of wagon in 2001 should have been lesser than what has been quoted
in the documents, he said. He said there was a strong possibility that at
least over $5.9 million were pocketed by unscrupulous officials. 
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