Transporter ‘embezzles’ Rs288m in bus service scam
Business leaders pointed out that transporters who will be worst affected will be the small owners of 10-wheelers and 14-wheelers, constituting about 60% of the trucking fleet of Pakistan – mostly family owned. photo: file
A private transport company, operating the shuttle bus service in the Diplomatic Enclave on a contract basis, is alleged to have embezzled Rs288 million in connivance with the relevant officials of the Directorate of Municipal Administration (DMA), an investigation revealed.
The owners of Bilal Travel have committed fraud which is attributed to the alleged negligence and conspiracy of the relevant DMA officials.
Informed sources told The Express Tribune that Haji Nawaz and Amjad, the owners of Bilal Travel, secured a contract worth Rs96 million per annum to operate the Diplomatic Enclave Bus Service, initiated by the Capital Development Authority (CDA) to facilitate citizens visiting the embassies in the Diplomatic Enclave Shuttle Bus Service from across the country. The contract allowed Bilal Travel to deposit the contract amount quarterly instead of adhering to the standard regulations of the Capital Development Authority (CDA) and DMA, which require an annual advance payment. However, even this lenient condition was not fulfilled, as the company failed to deposit the agreed amount into the government treasury.
Bilal Travel was obligated to deposit Rs96m annually to the government treasury over the four-year contract period. However, the company's owners employed delaying tactics, securing court injunctions for three years without depositing the total due amount of Rs288m. Allegedly, this was made possible through collusion with the DMA officials and significant facilitation.
When the court finally lifted the restraining order, the company's owners, exploiting the alleged official facilitation, embezzled the entire Rs288m from the government treasury.
After embezzling the amount, the owners of Bilal Travel absconded without fulfilling their contractual obligations, leaving the four-year contract period incomplete. Instead of promptly initiating recovery measures, DMA dragged its feet, neglecting to take decisive action against the company.
Later, in an attempt to appear proactive, DMA linked the recovery process to the Lahore addresses listed on the identity cards of the two owners, effectively slowing down the proceedings. By justifying this move, they initiated recovery action through the Deputy Commissioner Lahore. Despite three years passing, DMA has not recovered a single penny of the embezzled government funds, highlighting their ineffectiveness in addressing the issue.
Sources further said that the owners of Bilal Travel failed to deposit a single instalment of the contracted amount, which was supposed to be deposited every three months. Astonishingly, despite this breach, DMA officials chose not to cancel the contract, impose penalties, or recover the money. Despite attempts to reach out, DMA Administrator Rana Waqas wasn’t unavailable for comment on this matter.