ISLAMABAD – Supreme Court was informed on Thursday that leasing of Railways land to Royal Palm Golf and Country Club, Lahore caused a huge loss of Rs 290 million.
A two-member bench comprising Chief Justice Iftikhar Muhammad Chaudhry and Justice Ghulam Rabbani was hearing a joint petition against irregularities involving over Rs 25 billion in leasing of Railways land at Lahore to a Malaysian consortium associated by two Pakistani’s Lahore based companies- Husnain Construction Company (Pvt) Ltd and Unicon Consulting Service (Pvt) Ltd, which constructed Royal Palm Golf and Country Club at the land.
During hearing, Director General (Audit) Railways Irfan Jahangir submitted a report before the court stating that a same tender was accepted twice under various conditions. He said the day the contract was approved, it was also signed. He said the contract has caused over Rs 290 million in loss so far to the Railways. He said the original file of the contract was also missing. Makhdoom Ali Khan, counsel for Husnain Construction Company (Pvt) Ltd, told the court that Railways has been paid $2.5 million, besides 10 percent revenue is also being paid to it (Railways). He said Rs 40 million were paid to Railways last year. The CJ asked Makhdoom Ali Khan that, “Since your are getting profit, so you would have to be accountable for each penny,” adding that profit was being earned then why was the administration against him.
Makhdoom said if profit will be earned, income tax will also paid. He said his client had given the offer in 2004 and the deal took 16 months for completion. He said his client fulfilled all conditions of the Gold Course and Club House. “We will examine transparency in the deal”, the Chief Justice said. Makhdoom contended that no loss was caused to Railways in the deal. Meanwhile, the court adjourned further hearing till today (Friday). A joint petition was filed by Ishaq Khan Khakwani, former MNA and Dr Mubashir Hassan, founder member of PPP, challenging a lease agreement, involving 1128-Kanals of prime land of Pakistan Railways situated in the heart of Lahore city, executed between the government of Pakistan and a Malaysian consortium associated by two Pakistani’s Lahore based companies- Husnain Construction Company (Pvt) Ltd and Unicon Consulting Service (Pvt) Ltd- on July 26, 2001.
The petitioner has prayed the court to first declare the lease given for 49-yaers, to have been made through swindling and abusing official authority and after that appoint neutral and competent evaluators to assess the damages inflicted upon the Railways department and its largesse. The court has also been prayed to declare awarding of contract to Maxcorp Development Sdn Bhd Malaysia, Husnain Construction Company (Pvt) Limited and Unicon Consulting Services (Pvt) Limited of Lahore, to have been made in utter violation of Articles 2-A, 3, 4 and 25 of the Constitution.
Royal Palm cost Rs 290m to Railways, SC told
