Delay in delivery of 69 Chinese locomotives caused Rs 16 billion losses: Parliamentary panel informed

A parliamentary panel was informed on Tuesday that delay in delivery of 69 Chinese locomotives to Pakistan Railways in 2002-04 caused Rs 16 billion financial losses to national kitty and also paralysed Pakistan Railways. A subcommittee of the Public Accounts Committee (PAC), which met here under the chairmanship of Sardar Ashiq Hussian Gopang, also directed the Ministry of Railways to submit details about Pakistan Railways land grabbed by different persons and entities in the next meeting.
Secretary Ministry of Railways, Parveen Agha briefing the panel on encroachments of Pakistan Railways land said that provincial governments are not co-operating with the Railways in getting vacated the encroached lands. Commenting on supply of substandard railway engines from Chinese company Dong Fang in 2004 to the Pakistan Railways, Agha said that only as a result of delay in the delivery of those locomotives Pakistan Railways has faced an estimated loss of Rs 16 billion. She said due to delay in delivery as well as defective Chinese engines, Pakistan Railways has not attained self-sufficiency yet. She said that senior officials of that time signed a dubious agreement with Dong Fang, a Chinese engineering company, and as yet authorities are unable to take solid action against the company.
Later the government of Pakistan cancelled the deal with the Chinese company but it is still paying huge price, she added. Member committee Rashid Godil said that land grabbers constructed multibillion rupees projects in Karachi, but no one is able to take action against the powerful individuals and institutions. The audit officials informed the committee that Railways Ministry in 2006-08 purchased three vehicles, worth multimillion rupees, for former minister for Railways Sheikh Rashid, despite the fact that there was a ban on purchasing new vehicles.
The audit officials further told the committee that Pakistan Railways land for Royal Palm Club Lahore was sold at below the market price and as a result the national kitty faced a financial loss of Rs 248 million. Responding to audit objection over Royal Palm Club, the secretary railways said that the National Accountability Bureau (NAB) has been delaying the case since 2016 and has not initiated any inquiry into the case yet.
Responding to the secretary railways' comments, the NAB officials informed the panel that the entity has completed the inquiry and report has been submitted with headquarters, saying if Pakistan Railways authorities have been serious about the issue, many people involved in the case would have been behind the bars.
The committee members asked the officials why the NAB failed to fix the clear-cut responsibility and why the court failed to give a clear-cut decision in Royal Palm Club case. Gopang said that Supreme Court has completed the hearing of the case but it has not announced the verdict yet. The panel directed the Pakistan Railways to submit a copy of the land sale/purchase agreement between Pakistan Railways and the management of Royal Palm Club. Responding to purchase of three luxury vehicles in 2006-08, the officials of the railways informed the committee that the cars were not purchased for the then Railways Minister Sheikh Rashid but they were purchased for protocol.