ISLAMABAD, Dec. 21: The scheduled auction of the bus/flying coach stand in Markaz G-9 by the Capital Development Authority (CDA) may run into legal snags, as some people with vested interests are likely to object to the move.
The Dawn learnt that the open auction process, scheduled to be held on December 23 may not even start, as some people were busy trying to acquire a ‘stay order’ against it from the court.
The CDA, which took over the total control of the stand since October 19, is continuously facing losses and administrative problems in running the stand. While the revenue from the stand has declined on one hand, on the other the directorate of municipal administration (DMA) is feeling constrained because it is required to spare at least around 34 officials from its available strength to manage the stand at its own.
The deployment of one deputy director, two supervisors, one inspector and around 30 security guards at the stand in two shifts has affected working of some other departments in the DMA from where these people have been drawn.
Despite all the efforts, the CDA continued to face not only some losses in revenue from the stand but also was made to spend money out of whatever it has been earning in shape of utility bills and other over-head expenses, including the transportation of staff deployed at the stand.
The Dawn learnt that at present the CDA was earning around Rs40,000 per day (Rs2.4 million for 62 days) from the stand but had to bear the cost of utility bills as well as other over-head charges, which incurred on day to day basis in running the stand.
The previous contractor, who was allowed to operate the stand on the expiry of his contract, was paying a net amount of Rs44,000 per day and deposited Rs3.7 million with the CDA for the 79 days the stand remained under his control from July 29 to October 18, 2002.
Meanwhile, there are increasing allegations of malpractice and financial bungling in running the affairs of the stand with the involvement of CDA officials as well. Back in 1992, this stand was first handed over to M/s Islamabad Liners to operate under licence who, at that time, came up with the highest bid of Rs100 per departure for flying coaches and Rs50 per departure for non-A/C vans.
On the expiry of that licence, the stand was put up for open auction again on July 28, 2000 and M/s Zabita Khan, who offered the highest bid of Rs15.5 million per year won the contract to run the stand.
On the expiry of two-year term of the contract, the stand was once again put up for open auction on July 27, 2002 in which one Chaudhry Abdul Majeed offered the highest bid of Rs30.35 million per annum. This was a big leap in the revenue generation for the CDA.
However, some groups of transporters and operators plying vehicles on shorter distance protested against the rates approved by the CDA.
Incidentally, the rates against which these people raised objections were the same, which were approved back in the year 2000 and at that time as well some transporters and operators raised objections.
As a result, at that time an adjustment was done following some meetings between the parties concerned and the contractor started charging ad hoc fee which, in some cases, was less then half of what was approved by the CDA Board.
Amidst this situation, Chaudhry Abdul Majeed, who won the contract in the open auction at a little over Rs30.3 million per annum backed out and refused to take possession of the stand. This move created all the confusion and initially the CDA continued to renew the contract of the old contractor (M/s Zabita Khan) for a payment of Rs44,000 per day for 15 days and finally the Authority decided to take possession of the stand and manage it through its own means from October 19, 2002, an arrangement which is still continuing.
Now, with the CDA set to hold an open auction to dispose of the stand once again on December 23, Dawn learnt that it will not be a smooth affair and there was a possibility that some people with vested interests may prevent such a move.—Mubarik Virk