LAHORE, Feb 9: The Punjab NAB on Saturday arrested the deputy director finance and training, Pakistan Railways Training Centre, Walton Lahore, on corruption charges.

Punjab NAB deputy director (media) Sq Ldr Karamat Ali said Umar Haq had been arrested under the NAB Ordinance, 1999.

He said the Pakistan Railways in December 1996 invited applications for pre-qualification registration of firms and contractors for supply of uniform items. In response to the advertisement, 11 firms applied for the registration. Of them, six were declared pre-qualified. Against this running supply contract, railways paid Rs203 million till June, 1999. However, the contractors had actually supplied uniforms worth Rs97 million only, he added.

The railways staff, in collaboration with the contractors, paid Rs105.279 million to the firms without receiving any supply of uniforms.

On June 22, 2000, the contractors set the uniform store to fire at platform No 4 of Lahore city railway station to destroy the evidence of their misdeeds and embezzlement of funds.

An inquiry committee was set up to fix the responsibility and assess the loss caused by the fire. On the basis of evidence found by the committee, the case was referred to the Punjab NAB for further investigation.

He said Umar Haq, being the deputy director finance, did not point out the gross irregularities in procurement of uniforms and reappropriation of funds from store head to cash head. That facilitated fraudulent payment of Rs105.279 million to the contractor against the bogus purchase orders.