By IANS
Islamabad : A Chinese firm that was prevented by Beijing from supplying 300 railway bogies that Pakistan had contracted for has lost the Rs.30 million (about $50,000) guarantee money it had paid toward the Rs.1.6 billion contract after Islamabad forfeited the deposit.
Pakistan railway ministry officials were “shocked” to learn that the firm that had been awarded the contract “was forcibly stopped by the Chinese government from delivering the consignment”, The News said Wednesday.
“It was reported that the Chinese authorities had felt greatly annoyed with the Pakistan Railways bosses for awarding the contract to a firm that was not in its good books,” it added.
Taking advantage of this, the two rival companies that had failed to get the contract “simply got the whole deal scrapped to settle their own scores with the successful bidder”, the newspaper said.
The contract for the bogies, meant for developing rail links with Afghanistan, has now gone to an Iranian firm.
Railway Minister Sheikh Rashid Ahmed said attempts were made through diplomatic channels to persuade Chinese authorities to let the supplier deliver the bogies.
“But, he candidly admitted, the Chinese authorities did not allow the supplier. He said business rivalry had led to this sorry situation,” The News said.
Rashid “out rightly rejected” the impression that there was a scam in the deal, saying there was no certainty he would be the minister when the entire consignment would be delivered to Pakistan in six or seven months.