Railways purchases spare parts at higher prices
Many parts were not needed at all and rusting in PR warehouses, says NAB.
New railway engine imported from China is off loaded at Karachi port on Saturday. NAB revealed that the executive committee of the PR board had illegally approved a deal with Chinese firm Dalian Locomotives for the maintenance of 69 locomotives. PHOTO: ONLINE
LAHORE:
The National Accountability Bureau (NAB) has finalised an investigation into misappropriation in the procurement of spare parts worth $3.78 million for 69 Chinese locomotives of the Pakistan Railways (PR), The Express Tribune has learnt.
According to an investigation report, the accused awarded contracts for maintenance and repair as well as procurement of spare parts for Chinese locomotives in violation of Public Procurement Regulatory Authority (PPRA) rules and PR’s code.
In addition to this, instead of a tender committee, another body was constituted illegally for granting the contracts.
A NAB official said three accused were indicted and identified them as then general manager (operations) PR Saeed Akhtar, the former general manager (maintenance and services) Naeem Malik and the then additional general manager (mechanical) Mian Ahsan Mahmood. They played a key role in the purchase of spare parts.
Another misappropriation of $300,000 was also unearthed. Though the amount was allocated for training of officials, Chinese experts did not visit Pakistan for the purpose.
According to the investigation, based on a decision of the committee, PR purchased 1,132 types of spare parts instead of the required 450 types. Of these, 356 were purchased at a price five times higher than the actual price in the open market, 256 were bought at twice the actual price while the remaining were not needed at all.
NAB revealed that the executive committee of the PR board had illegally approved a deal with Chinese firm Dalian Locomotives for the maintenance of 69 locomotives. The deal was unnecessary because the spare parts purchased were not required and were still lying in PR warehouses, it said.
From 2003 to 2007, PR procured the 69 locomotives manufactured by Dalian Locomotives, which also provided spare parts for up to three years.
However, by early 2009, most of these locomotives developed major faults, causing huge losses to the PR.
Later on August 17, 2009, the PR board’s executive committee considered the maintenance contract for the purchase of spare parts. Under the contract, almost 80% of the PR’s maintenance budget was released to Dalian, leaving no money for the purchase of spare parts, repair and maintenance of other locomotives.
Because of this contract, the report said, the entire fleet of locomotives went out of order as there was no money left for purchasing spare parts and repair work.
Published in The Express Tribune, April 27th, 2014.
The National Accountability Bureau (NAB) has finalised an investigation into misappropriation in the procurement of spare parts worth $3.78 million for 69 Chinese locomotives of the Pakistan Railways (PR), The Express Tribune has learnt.
According to an investigation report, the accused awarded contracts for maintenance and repair as well as procurement of spare parts for Chinese locomotives in violation of Public Procurement Regulatory Authority (PPRA) rules and PR’s code.
In addition to this, instead of a tender committee, another body was constituted illegally for granting the contracts.
A NAB official said three accused were indicted and identified them as then general manager (operations) PR Saeed Akhtar, the former general manager (maintenance and services) Naeem Malik and the then additional general manager (mechanical) Mian Ahsan Mahmood. They played a key role in the purchase of spare parts.
Another misappropriation of $300,000 was also unearthed. Though the amount was allocated for training of officials, Chinese experts did not visit Pakistan for the purpose.
According to the investigation, based on a decision of the committee, PR purchased 1,132 types of spare parts instead of the required 450 types. Of these, 356 were purchased at a price five times higher than the actual price in the open market, 256 were bought at twice the actual price while the remaining were not needed at all.
NAB revealed that the executive committee of the PR board had illegally approved a deal with Chinese firm Dalian Locomotives for the maintenance of 69 locomotives. The deal was unnecessary because the spare parts purchased were not required and were still lying in PR warehouses, it said.
From 2003 to 2007, PR procured the 69 locomotives manufactured by Dalian Locomotives, which also provided spare parts for up to three years.
However, by early 2009, most of these locomotives developed major faults, causing huge losses to the PR.
Later on August 17, 2009, the PR board’s executive committee considered the maintenance contract for the purchase of spare parts. Under the contract, almost 80% of the PR’s maintenance budget was released to Dalian, leaving no money for the purchase of spare parts, repair and maintenance of other locomotives.
Because of this contract, the report said, the entire fleet of locomotives went out of order as there was no money left for purchasing spare parts and repair work.
Published in The Express Tribune, April 27th, 2014.