ISLAMABAD: The National Accountability Bureau has filed a corruption reference against former officials of Pakistan Railways and others allegedly involved in a Rs48.2 million scam commonly known as ‘pig iron case’.

According to a NAB spokesman, the reference was filed in an accountability court in Lahore against Zahoor Khattak, PR’s former chief controller (purchase); Saeed Akhtar, ex-general manager (operations); Sameeullah Khan, ex-chief controller (stores); Behzad Mehmood, former chief mechanical engineer (loco); Yawar Abbas, ex-financial adviser and chief accounts officer; Tariq Maqsood, former financial adviser and chief accounts officer; S. Amin-ud-Din, ex-deputy manager accounts of Pakistan Steel Mills’ zonal office Lahore; Suhail Sana Qazi, ex-deputy chief engineer/in-charge PSM; Jawad Ahmad, manager of M/s Pak Steel Traders, Lahore; and Zeeshan Ahmad, contractor/proprietor of Pak Steel Traders, for misuse of authority, violation of the Public Procurement Rules 2004 and award of a contract without advertisement.

The PR officials allegedly in connivance with the contractor awarded the contract to Pak Steel Traders for procurement of 500 tons of pig iron, thus causing a loss of millions of rupees to the exchequer.

NAB recently reviewed different scandals in Railways, but skipped one of the biggest scams of the country – Royal Palm Golf and Country Club in Lahore.

It reviewed five cases of Railways, including procurement of 175 passenger coaches without advertisement; opening of bids without completion of formalities, causing a loss of $91m to the exchequer; pig iron scam of Rs48.219m; inquiry against officers of PR and others for causing a loss of Rs397m; inquiry against Khalid Mohyuddin and 17 others for causing a loss of Rs3.84m; inquiry against officials for the delay in awarding contracts of exclusive selling rights of carbonated soft drinks (CSD) and bottled/mineral water, causing a loss of Rs95m; and inquiry against PR purchase/tender committee for misuse of authority.

A senior official said the Royal Palm Golf and Country Club scam had not come under discussion because the NAB meeting reviewed only fresh cases, and not the old ones.

The scam involves the handing over of Railways’ 141 acres precious land to a private company on lease at a throwaway price. The case being earlier investigated by the Federal Investigation Agency (FIA) was handed over to NAB in 2012.

The case is being tried in the Supreme Court, but NAB is probing it as part of a comprehensive investigation into Railways’ affairs.

A comprehensive report issued by the National Assembly’s Special Committee on Railways in 2012 on the allotment of land for the club revealed several financial and administrative irregularities and recommended prosecution of all members of the Railways’ executive committee.

According to the report, 141 acres of land were allotted at a nominal price after reducing land utilisation charge from Rs52.43 to only Rs4 per square yard, thus causing a loss of Rs4.82 billion to the national exchequer. It said the construction of a hotel was not mentioned in the terms of reference finalised on April 20, 2001.

A NAB source said one of the accused in the scam, former PR secretary Samiul Haq Khilji, was out of the country and Interpol’s assistance might be sought to bring him back.

Published in Dawn, July 6th, 2015

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