NA panel briefing: PR purchased obsolete locomotives ‘knowingly’
Despite spending 98% of total budget allocated for purchasing spare parts for 69 locomotives, only 17 are operating.
ISLAMABAD:
The debt-ridden and crisis-hit national carrier – Pakistan Railways (PR) knew China sold them obsolete locomotives. Even then, they purchased 69 locomotives from the state-owned Chinese company once in 2002 and another 75 were ordered again in 2005.
The National Assembly Standing Committee on Railways was told on Friday that PR then had to purchase spare parts to keep the locomotives operating. Despite spending 98% of the total budget allocated for purchasing spare parts for the 69 locomotives, only 17 are operating.
“At least 105 items from the total of 142 spare parts were purchased at five times the price and without advertisement, causing a loss of Rs578 million to the public exchequer,” the National Accountability Bureau (NAB) investigation officer told the standing committee.
Further, railways authorities purchased the spare parts that were not required for another 20 years. Secretary PR Arif Azeem said “The idea then was to create an inventory of parts,” he said.
He was promptly interrupted by the Chairman of the NA Standing Committee on Railways, MNA Sardar Ayaz Sadiq, saying, “Inventory on whose expense, the people? Had quality locomotives been purchased, you could have saved the expense on the spare parts in the first place and avoided revenue losses.”
Secretary Azeem admitted that the shortage of locomotives was causing the railways more than Rs40 billion of annual revenue losses. Revenue dropped from Rs23 billion to Rs15 billion last year.
He added that the railways will have to pay the initial amount as per the agreement with the Chinese company.
“Those who made such deals should pay it from their pockets now,” said MNA Sadiq. The investigation officer said the Chinese company was contacted, but they did not seem to be interested in returning the money.
Royal Palm Golf Club scam
NAB officials said investigations into the Golf Club land scam involving Rs18 billion, were in their final stages. A report has already been filed before the Supreme Court.
Published in The Express Tribune, December 8th, 2012.
The debt-ridden and crisis-hit national carrier – Pakistan Railways (PR) knew China sold them obsolete locomotives. Even then, they purchased 69 locomotives from the state-owned Chinese company once in 2002 and another 75 were ordered again in 2005.
The National Assembly Standing Committee on Railways was told on Friday that PR then had to purchase spare parts to keep the locomotives operating. Despite spending 98% of the total budget allocated for purchasing spare parts for the 69 locomotives, only 17 are operating.
“At least 105 items from the total of 142 spare parts were purchased at five times the price and without advertisement, causing a loss of Rs578 million to the public exchequer,” the National Accountability Bureau (NAB) investigation officer told the standing committee.
Further, railways authorities purchased the spare parts that were not required for another 20 years. Secretary PR Arif Azeem said “The idea then was to create an inventory of parts,” he said.
He was promptly interrupted by the Chairman of the NA Standing Committee on Railways, MNA Sardar Ayaz Sadiq, saying, “Inventory on whose expense, the people? Had quality locomotives been purchased, you could have saved the expense on the spare parts in the first place and avoided revenue losses.”
Secretary Azeem admitted that the shortage of locomotives was causing the railways more than Rs40 billion of annual revenue losses. Revenue dropped from Rs23 billion to Rs15 billion last year.
He added that the railways will have to pay the initial amount as per the agreement with the Chinese company.
“Those who made such deals should pay it from their pockets now,” said MNA Sadiq. The investigation officer said the Chinese company was contacted, but they did not seem to be interested in returning the money.
Royal Palm Golf Club scam
NAB officials said investigations into the Golf Club land scam involving Rs18 billion, were in their final stages. A report has already been filed before the Supreme Court.
Published in The Express Tribune, December 8th, 2012.