LAHORE, Oct 12: An accountability court on Friday framed charges against former Punjab senior minister and PPP leader Malik Mushtaq Awan for causing huge loss in award of octroi contracts in Lahore and Sheikhupura districts.

The accused pleaded not guilty and the proceedings were adjourned for Oct 22 for recording of prosecution evidence. The accused did not press his application for his acquittal filed under Section 265-k of CrPC and fixed for rebuttal by the defence counsel during the day. He said he would press the application later at an appropriate stage. The court adjourned the application indefinitely.

It is alleged that the accused, in connivance with his brother Malik Ishtiaq Awan, caused losses of Rs75.1 million, Rs37.95 million and Rs260 million in the award of contracts in Sheikhupura and Lahore district councils.

The charge read:

The accused, as the provincial local bodies minister in 1996, ordered amendments to the ordinance in the Punjab Zila Council rules 4 and 16(2) and the Punjab Zila Council Export Tax Rules, 1990, to illegally usurp the powers of the administrator to acquire monetary benefits in collection of goods exit tax of the zila council.

The accused in 1996 allegedly wilfully delayed the award of a contract in Sheikhupura to the highest bidder, Muhammad Ramzan. The bid was of Rs230 million. The finalization of the contract was delayed for 38 days for unexplained reasons and it was allegedly subsequently allotted to another firm at a loss of over Rs70 million. Allegedly the term of the contract for the subsequent bidder was also extended illegally.

The accused allegedly manoeuvred the collection of goods octroi contracts for Sheikhupura Zila Council illegally for 110 days, from July 1, 1996, and October 18, 1996, at a lesser rate. The contract was awarded at a rate of Rs285,000 per day whereas the prosecution said it should have been at the rate of Rs630,410 per day, and, therefore, he caused a loss of Rs30 million.

The third contract under question was awarded in Lahore. Here the accused is said to have delayed the finalization of a contract for Rs680 million for seven days forcing the highest bidder to withdraw. The contract later reportedly went to a firm of the choice of the accused who paid Rs420 million for it. The contract is said to have been finalized in a haste within a day.