ISLAMABAD, Sept 13: The Public Accounts Committee (PAC) of the National Assembly has called for cancellation of a controversial land lease agreement signed by Pakistan Railways and the Royal Palm Golf and Country Club in 2001.

While reviewing on Thursday the audit report of the railways for 2006-07, the committee not only recommended fresh bidding for nearly 150 acres of the land at a prime location in Lahore, but also strict disciplinary action against the former bosses of the railways, including three retired military generals, who had endorsed the agreement.

On learning from the National Accountability Bureau (NAB) that the land lease had been sealed with mala fide intentions by the then railway high-ups, the PAC members unanimously recommended its cancellation.

A NAB official informed the committee that the bureau in its report submitted to the Supreme Court a couple of days ago in a suo motu case about financial wrongdoings committed in the railways had confirmed that the lease had not been carried out in a transparent manner and had many loopholes which had resulted in loss of billion of rupees to the national exchequer.

“We ask NAB to pass on the committee’s recommendation to the Supreme Court and let the government go for a fresh bidding,” MNA Ayaz Sadiq of the PML-N, who was presiding over the meeting, said.

The NAB official said since the case was in the court the bureau could only assist it and could not take any decision on its own.

Yasmin Rehman of the PPP said that during every meeting held on this issue it had transpired that the club management wasn’t willing to resolve the matter had had instead deviated from its earlier commitments.

During the last PAC meeting held in August the committee was told that the club administration had agreed to pay additional money to make up for the losses, now “you are telling us that the payments are not being made”, she said.

“I believe enough has been said and done about this highly objectionable deal and the only way out is its fresh bidding.”

Rukhsana Bangash and Noor Alam of the PPP also called for cancellation of the lease.

Mr Alam said that besides the PAC recommendations the court should also be provided documentary proof of how the former generals had “hoodwinked the nation” and got through the deal, causing the huge loss to the exchequer.

The MNA who was also part of a special committee of the National Assembly which separately investigated the deal said enough hard evidence was available which clearly suggested that people at the top were involved in the scam.