Irregularities in cut-price auction of rail track

Irrigation Department says 40km of track was sold at ‘best price available’.

BAHALWALPUR:

Pakistan Railways has objected to the Punjab Irrigation Department’s recent sale of some 40 kilometres of railway track as scrap iron and may seek legal remedy.

PR officials wrote to the Irrigation Department on March 13 and March 21 to say that the rules required the department to obtain a no-objection certificate (NOC) from Railways for the auction of the track.

According to documents available with The Express Tribune, a bid of Rs800 million was offered in 2004 for the track, which was sold at the start of March for Rs90 million.

Abdul Razzaq Shah, Multan divisional superintendent of Railways, confirmed that two letters had been sent to the Irrigation Department drawing their attention towards the proper procedure and rules.

He said: “Our negotiations are in process at an inter-departmental level. We may seek legal remedy if the process fails.” He said it costs Rs90-100 million to lay a kilometre of railway track.

Punjab Irrigation Department Chief Engineer Syed Arjad Hussain Jaffery rejected the claim, saying the department had explained in its response to PR that the track was the property of the department. He said that the price received was the best price offered.

“We are ready to call a fresh tender if someone is ready to offer Rs150 million for the track,” he said. “People do not participate in the tender process and then start making accusations later.”

Published in The Express Tribune, March 28^th, 2011.