Irregularities in awarding contract: LHC seeks replies from ministry, chairman Railways

The Lahore High Court (LHC) has sought replies from Railways ministry, chairman Pakistan Railways and others in petition filed against massive irregularities in awarding contract of sale of scrap to different companies. The petitioner M/s Black Gold Industry claimed that it offered the highest bid for the contract but it was ignored.
Railways in a bid to overcome financial crisis decided to sell assets in form of scrap and lots of scrap weighing 21000 and 20000 metric tones, respectively were prepared for this purpose. The petitioner contended that tender for 21000 metric tones scrap was opened in November 2008 but the bids of all tenderers were rejected twice to give maximum benefit to bidder of choice of general manger Railways.
He said tender was decided after a delay of 17 months in February 2010 that also showed mala fide intention on the part of respondents. Furthermore, the market price was not kept in view despite the fact that a committee of five officers had assessed higher rate but tender committee ignored its objections.
Petitioner counsel pointed out similar irregularities in the bidding of 20000 scrap. He said order of awarding tender to Pioma Trading Corporation, Nawaz Khan Trading Corporation, Zahir Khan and brothers was illegal as it had been done on cheap rates as the petitioner-company had offered higher bid. He said in this way respondents had caused huge monetary loss to national kitty as well as to his company. The petitioner said it was still ready to get contract on higher rate to save Pakistan from further loss. The court after hearing the petitioner counsel at length issued notices to the respondents.