The Chairman
National Accountability Bureau
Islamabad 

Pakistan Peoples Party…………………………COMPLAINANT 

                                                                 VS 

1. Lt. General (Retd) Javed Ashraf Qazi, the then Federal Minister for Railways.

2, Lt. General (Retd) Saeeduz Zafar, the then Chairman, Pakistan Railways.

3. Maj. General (Retd) Hamid Butt, the then General Manager Administration,

Pakistan Railways…………….…………        ACCUSED / RESPONDENTS

Subject:  COMPLAINT UNDER SECTION 5 AND 18 (B) SUB SECTION-II OF THE NATIONAL ACCOUNTABILITY BUREAU (NAB) ORDINANCE 1999, AGAINST THE HOLDERS OF PUBLIC OFFICE FOR PUNISHMENT UNDER SECTION 10 OF NAB ORDINANCE FOR CAUSING HUGE FINANCIAL LOSS TO THE NATIONAL EXCHEQUER BY CORRUPTION AND CORRUPT PRACTICES
 
FACTS AND GROUNDS:
 
1.      That the respondents were deeply involved in scam of million Dollars in the purchase of 1300 Wagons purchased in the year 2001 @ $ 44,055 per wagon whereas the wagons were available in the year 2006 @ $ 39,447 per wagon as stated by Sh. Rasheed Ahmad, Federal Minister for Railway in National Assembly on 16-6-2006 and printed in the daily “The News” on 17-6-2006.
 
2.      That the respondents were facing charges of purchasing 1300 containers flat wagons worth of $ 57 millions from China as confirmed on the floor of the National Assembly on 16-6-2006 in 2001 at much higher rates i.e. $ 4,608 per wagon, than it’s current market price in 2006.
 
3.      That the Minister, however, did not give any justification to the Lower House as demanded by MNA Sardar Ayaz Sadiq regarding payment of an extra amount of $ 4,608 per wagon over and above the actual price or who pocketed the money of $ 5.9 million may be much more in 2001 in one deal.
 
4.      That the fresh scam surfaced in April 2006 when the Ministry of Railways came to know that these 1,300 wagons were purchased at $ 44,055 per unit in 2001 by the ministry and were available at $ 39,447 per unit in 2006 irrespective of the rise in cost of manufacturing in the shape of oil and electricity during the last five years.
 
5.      That an earlier $100 million controversial deal of the ministry regarding purchase of defective Chinese locomotives is yet to die down despite its recent statement in the subcommittee of the Public Accounts Committee by retired colonel Ghulam Rasool Sahi now MNA of ruling Party PML-Q as chairman sub committee of Parliamentary Public Accounts Committee, after hearing the arguments from the secretary railway Mr. Shakeel Durani passed a judgment for senior’s relief though there was misconduct in the procurement of Locomotives, the then administration had made the deal in good faith therefore this issue stand settled”. Although this deal played a role to murder and injure the passengers on the rail tracks in accidents & secretary railway Mr. Shakeel Durani informed in categorical terms that rules were seriously violated.
 
6.      That as the Audit representative stressed in an other meeting of the Sub Committee of Parliamentary Public Accounts Committee published in daily “The Dawn” dated 26-5-2006 that the Law Ministry had clearly stated in the recommendations sought by the sub committee of Public Accounts Committee that NAB could proceed against retired army officers involved in corrupt practices during their services under section 9 of the NAB Ordinance 1999.
 
7.      That the GHQ has already expressed its inability stating that since the officers had been retired from the army service, it could not take action against them as printed in the last lines of “The News” press clipping printed on 26-5-2006.
 

8. The above facts have published in the daily “The News” dated 17-6-2006 (press clipping attached)

9.      Respondents in this complaint do fall within the ambit of NAB Ordinance 1999 for the purposes of investigation trial and punishment.

10.      The Respondents are reportedly guilty of corruption and corrupt practices as a Federal Minister for Railway, Chairman Railway and General Manager Administration Railway abuse of power as defined in Section 9 of the Ordinance and as such are subject to punishment under Section 10 of the Ordinance based upon the following facts and grounds:

CONCLUSION: 

Based on the above facts and grounds, the respondents have shown willful indulgence in corrupt practices under Section 9 of the Ordinance. Such persons are subject to punishment under Section 10 of the NAB Ordinance 1999. 

As such the Chairman, National Accountability Bureau, is called upon to initiate investigation in connection with matters set out herein above and further proceed to file a Reference against the respondents for violating the provisions of Section 9 of the Ordinance punishable under Section 10 of the Ordinance in competent court of law and proceed against those concerned for violating Section 9 of the NAB Ordinance 1999.

Complainant 
 
Pakistan Peoples Party
  
Through:

Amjad Iqbal Qureshi
Advocate

Dated: Islamabad : 29 July 2006

Another multimillion-dollar scam to hit Railways
The NEWS dated 17 June 2006

By Rauf Klasra

ISLAMABAD: Another multimillion-dollar scam is about to explode in the Ministry of Railways after its Minister Sheikh Rashid Ahmed confirmed on the floor of the National Assembly on Friday that Pakistan had purchased 1,300 containers flat wagons worth $57 million from China in 2001 at much higher rates, ie $4,608 per wagon, than its current market price.

The minister, however, did not give any justification to the Lower House as demanded by MNA Sardar Ayaz Sadiq regarding payment of an extra amount of $4,608 per wagon over and above the actual price, or who pocketed the difference money of $5.9 million in one deal.

The fresh scam surfaced in April 2006 when the Ministry of Railways came to know that these 1,300 wagons, which were purchased at $44,055 per unit in 2001 by the ministry were astonishingly available at $39,447 per unit in 2006 irrespective of the rise in cost of manufacturing in the shape of oil and electricity during the last five years.

To the astonishment of the ministry officials, they received bids of $39,447 per wagon, $4,608 less per wagon, five years down the road than those purchased in 2001. An earlier $100 million controversial deal of the ministry regarding purchase of defective Chinese locomotives is yet to die down despite its recent settlement in the subcommittee of the Public Accounts Committee in the name of “good faith”.

Documents placed before the National Assembly during the question hour reveal that the Pakistan Railways paid over $5.9 million more to the wagon supplier from China in 2001 to buy 1,300 wagons worth $57 million. These documents confirmed the doubts that a few million dollars might have changed hands at the time of finalisation of the deal between the Railways Ministry and the Chinese firm in 2001.

Earlier, MNA Sardar Ayaz Sadiq had asked whether or not it was fact that the tender for railway wagons freight awarded in April 2006 was considerably less than the contract signed during the year 2001 despite escalation in fuel and electricity charges. MNA Sardar Ayaz wanted to know the justification of price difference in these two deals.

Replying to the question, Rashid said the Pakistan Railways had floated an international tender for procurement and manufacturing of 300 High Capacity Container Flat wagons in January 2006. Tenders were opened on April 10, 2006. The minister said as per technical evaluation report, all the six offers were declared technically suitable. The financial bids of the technically suitable bidders were opened on April 19. The bids are still under scrutiny and the tender has not been finalised and no contract awarded so far.

Rashid said the ministry received six bids, one each from Ukraine, Iran, Egypt and two from China. However, the lowest bid was given by a Chinese firm M/S Beijing Research and Design Institute China. The company has offered to provide 300 wagons at a rate of $39,447 per unit against $44,055 per unit price agreed in 2001. Thus, there is a clear difference of $4,608 per wagon in the deal struck in 2001 and one now under consideration of the ministry.

An official of the Railways Ministry said on condition of anonymity that actual price of per unit wagon in 2001 should have been lesser because purchase of the size of the deal when 1,300 wagons worth $57million were purchased against the 300 wagons being purchased in 2006. Likewise, the per unit cost of wagon in 2001 should have been lesser than what has been quoted in the documents, he said. He said there was a strong possibility that at least over $5.9 million were pocketed by unscrupulous officials.