Lahore High Court Chief Justice Umar Ata Bandial here on Monday issued notice for June 19 to the Ministry of Railways and others in a petition of a Chinese company requesting the court to suspend orders of the Ministry declaring it as a blacklist company.
The petitioner company, Dongfang Electric International Corporation, in its petition said the company had in 2008 entered into a contract with Ministry of Railway for the supply of 75 locomotives at the cost of 105 million US dollars. As per the agreement, the down payment of US $15.77 million was paid.
Meanwhile, another underhand deal by the Ministry exposed in some press sections about the procurement of 150 Diesel Electric Locomotives from certain suppliers. Later, one more deal of procurement of 50 locomotives unearthed, the counsel added. The counsel contended that the Ministry started threatening the petitioner company to cancel the agreement of 75 locomotives when it approached the court against the procurement of 150 locomotives on the grounds of ill transparency.
On the request of the petitioner company, the courts ordered the Ministry of Railway to re-tender the procurement of the 150 locomotives. The counsel said the Ministry issued show-cause notices to the petitioner company on denial of withdrawing the petitions and declared the petitioner company as blacklisted on March 26.
The counsel pointed out that the respondent ministry had on May 16 and June 5 also issued notices purporting to cancel the agreement for supply of 75 locomotives and seeking return of the US 15.77 million dollars down payment. He contended there were no allegations that the petitioner company had at all the times acted above the board and in a professional and conscientious capacity. Therefore, the blacklisting of the petitioner company was in violation of the established and circulated rules issued by the Ministry.
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