FAISALABAD, March 10: The Provincial Transport Department has granted a valuable 12-kanal tract to a private transport company through what locals call a shady transaction, which has caused huge financial loss to the government treasury.

Information gleaned by Dawn on Monday revealed that the Punjab government had invited open tenders from transporters under a franchised urban transport system to ply latest buses in the province’s big cities. Two investors namely, Bashir and Sons and Baloch Transport Company applied for permission to ply buses on various Faisalabad district routes.

The Baloch Transport Company, in its bid, offered to ply 200 non-air-conditioned and 50 air-conditioned buses, each in Faisalabad and Lahore. However, the transport authorities accepted Bashir and Sons’ bid and gave it rights for exclusive operation of a franchised bus service on 10 routes in the district.

The private transport company was also given eight per cent subsidy on receiving basis, and allowed the benefit of obtaining loans from financial institutions at a nominal mark up of four per cent for the purchase of buses. Besides, the firm was reportedly given concession to provide 30 per cent equity while 70 per cent had to be financed by the government institutes.

The company was also allowed to import buses’ chassis without any custom duty or tax. The department allegedly exempted the company from application of the Industrial Relations Ordinance, 1969, provisions and other labour laws, thus, giving it a free hand to give fringe benefits, payments and wages to its employees.

The company was ‘favoured’ by leasing out one of the most valuable sites situated in the commercial heart of the district.

An agreement was signed by various government functionaries and the transport company’s officials. Under clauses 18 and 19 of the Transport Franchise Agreement signed between the operator and local district transport authority chairman, the company was allowed to use the General Transport Service space.

The transport department and the Faisalabad Transport Authority said to have overlooked various facts to favour the company. For instance, in the department’s summary put up before the evaluation committee, it was allowed to use the parking place of the old GTS depot. The summary also did not include the Ghulam Muhammadabad GTS depot, which was more appropriate for use as a parking and stop-over point as the main route under the franchised base also operated from here. By mentioning only one spot, the fact-finding committee and cabinet’s sub-committee were hoodwinked by the provincial transport authority. The old GTS depot, having 56-kanal commercial place, was put under the head of deduction of non-development expenses of the government scheme, and was earmarked for auction.

Subsequently, the Punjab Privatization Commission thrice announced the GTS depot’s auction. However, sources claimed that the Bashir and Sons company, which was allowed to use the land, managed to postpone the auction every time.

Favouritism by the provincial transport authority and the local administration can be seen from the fact that an international non-government organization called Jacob and Associates had also applied to the Punjab government and the local administration to get permission to ply 100 air-conditioned Australian brand modern Mercedes buses at nominal fares, but was ignored.

The NGO claimed that it would import all the buses through foreign aid, and also offered to the government that it would hand over the entire establishment and the buses free of cost after four years.

The organization reportedly undertook that the Punjab government would be free to use the funds and income generated from the proposed bus service for uplift and modernization of the district.

The NGO claimed to have spent Rs45 million to make the plan a success. However, the provincial government and the district administration turned down the NGO’s offer.

Calling the transport department’s move a shady deal, people have demanded a high-level inquiry into the matter. They claimed that stop-overs at the fixed place would create traffic jumbles because of its location and load.