ISLAMABAD: According to the Auditor General’s (AG) report, Pakistan Railways (PR) – seeking a Rs12 billion rupees bailout package - has caused a loss worth Rs750m to the national exchequer in scrap selling.
According to the report – the PR administration illegally re-opened a tender, earlier issued in 2008, and gave the contract in 2010 to a bid lower than market rate.
Thousands of tons of scrap was sold for much less than the market rate wherein conditions of the tender were also changed after it was re-opened – while the contractor was illegally allowed to pay through installments.
The case was forwarded to the Federal Investigation Agency (FIA) – and orders for action by its audit department - had not been implemented yet.
The PR administration could have earned profits worth Rs530m rupees had it used a fair policy.