Railways land scam: FIA awaits green signal to further probe

Agency has yet to transfer record related to scams to NAB; 141 acres allotted for 99 years.

LAHORE:

FIA has it on record that former railways minister Lt Gen (retd) Javed Ashraf Qazi, chairman Maj. Gen. Hamid Butt and former general manager Lt Gen. Saeeduz Zafar had been instrumental in allotting the 141 acres land to Royal Palm.

According to terms determined by the PR committee, the rate for the prime land had been fixed at Rs53.4 per yard but the land was allotted for Rs4 per yard. FIA Punjab had initiated a fact-finding inquiry in 2009 on the then FIA director general’s (DG) orders. Fast forward 2011, two weeks after the DG FIA was requested to hand over the record seized from PR to the National Accountability Bureau (NAB), in accordance with the Supreme Court’s directive, through a letter by Chairman Admiral (retd) Fasih Bokhari, the agency has yet to make a move, sources in NAB confirmed. A copy of this letter is available with The Express Tribune.

Ironically, the advertisement for auction of 111 acres land was for 33 years which was later extended to 99 years along with an additional 30 acres without completing legal formalities. This resulted in a loss of more than Rs4 billion to the national exchequer, FIA investigators revealed. A technical report presented to the FIA by PR confirmed that administrative and financial irregularities had caused a Rs4.82 billion loss to the national exchequer. FIA Punjab requested headquarters for permission to launch a formal inquiry some months ago but despite submitting relevant documents, it has been withheld, according to sources. The FIA has failed to even issue a single notice to the offenders.

A comprehensive report recently issued by the national assembly’s special committee on railways on allotment of land for setting up Royal Palm recommended prosecution of railways executive committee members which includes the generals in question for financial and administrative irregularities. It also pointed out that the construction of a hotel was not mentioned in the terms of reference. The committee had also directed the FIA to initiate an investigation.

A letter signed by Deputy Chairman NAB Javed Kazi has asked FIA to transfer the entire record and FIRs registered by the agency against PR officials and contractors involved in auctioning scrap, also quoting an apex court order dated November 12, 2011.

NAB spokesman Shiraz Latif confirmed that chairman NAB has ordered an inquiry against PR officials involved in the mega corruption scandal for massive misappropriation, embezzlement and misuse of authority. A NAB team, briefed by FIA and PR officials, has begun investigation into the matter, sources revealed. FIA Punjab had registered a case against PR officials and contractors for selling 5000 metric tons of scrap below market value and recovered Rs45 million from them. Another inquiry on bulk tenders is also pending with FIA in which PR officials tried to inflict a loss of Rs750 million on the public purse by disposing of 40,000 tons of scrap at nominal rates. Immediate intervention by the agency salvaged 34,000 tons. Relevant documents on the two scrap-related scams will be transferred to NAB when FIA Headquarters gives the signal, sources in FIA said.

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