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Facts and fiction about Royal Palm Golf Course deal
Facts and fiction about Royal Palm Golf Course deal - thenews.com.pk
Ahmad Noorani
SLAMABAD: Keeping aside the rough and rude behaviour of ex-army generals after their recent appearance in NAB, if facts of the case are analysed objectively and without any emotions, the Railways Palm Golf Course was a wonderful deal.
Pakistan Railways was wasting big amount of money annually in running and managing the Golf Course Lahore, which was in use of some elite class members who would pay Rs12 per annum for 103 acres of land while after the new deal this course was earning Rs40 million annually while the land and newly constructed building were the ownership of the department, documents submitted in the Supreme Court explain.
A perception has emerged in the media at the whims of the powerful and mighty elite who had been using this club for decades that “Lahore’s prime land was converted into a gold club”, whereas the fact is that the same land was a gold club even before but was used by a select few. After the 2000 deal it was privatised and now was being used by hundreds of members, bringing millions for the money-less railway.
This land according to its category cannot be used for any purpose other than a golf course. Though generals of Pakistan Army have played havoc with this country but a careful analysis of the record of this whole case shows that this was a wonderful deal but there has been a consistent attempt to attack and fix some army generals for some other crimes committed by them or their colleagues.
A 103 acres Railway land piece situated on canal bank Lahore was categorised as golf course more than a century ago during the British era. The documents show that the golf course was used by a select group of the elite class and ironically Pakistan Railways was spending more than Rs200000 annually from its revenue to run and manage its affairs.
In 2000 the Railways was on the verge of collapse with Rs20 billion debt of the State Bank and was facing an annual loss of Rs2.5 billion. According to the documents submitted in the Supreme Court, the lease of this Railway land (which was only to be used as a golf course) started generating revenue of more than Rs40 million per annum (only profit generating unit of Pakistan Railways so far) with construction of mega buildings and a golf course of international standard with everything owned by none else but the Pakistan Railways itself.
However, after this lease was signed the members of the old golf club, headed by former railway minister Ishaq Khakwani, who played golf at the expense of poor railway passengers, started maligning the railways authorities and even it was said that Railways has sold the land worth billions for peanuts, a statement claimed.
It was alleged that some top managers of Pakistan Railways mostly belonging to the army had sold the precious national land to foreigners for peanuts. It was alleged that an important file of the bid offers was misplaced and area of the land and total duration of the project as was advertised was increased later through mala fide practices of the then top guns of Pakistan Railways.
For the last about ten years a select group of people continuously criticised the project and alleged that huge corruption had taken place at the time of leasing of this land. Print media record also shows that the point of view of only one side always appeared without the versions of other side.
The most important aspect is that even after passing of ten years no one from general public came to complain against this modification and huge construction facility at the Royal Palm Golf Course Lahore except those who were registered members of the old club and the same was highlighted in the media by their known friends.
These old members had challenged the deal in Lahore High Court where no one else but Justice Khalil-ur-Rehman Ramday was the judge. It is interesting to note that after hearing the initial arguments, Justice Ramday addressed the petitioners with following observation; “You should be ashamed before invoking the jurisdiction of this court. You were paying Rs12 per annum (twelve rupees per year) and now Pakistan Railways will earn Rs40 million per annum after this lease agreement.” The result was very simple.
These members of the old club never turned up at the LHC again and Justice Ramday dismissed the petition on May 4, 2001. These members again used their friends in the media hoping that the judiciary might have forgotten the old record and facts.
The replies show that one major point used to mislead the public was that the total per annum income was much lower whereas the land was very precious and its market value was four to five times the amount agreed upon.
“This seems to be correct as if the land was allowed to be leased on commercial basis for best possible commercial purposes the income would have been in billions but this land was marked and categorised as ‘golf course land’ and it was supposed to be used as a golf course in any case and was not to be ‘sold’ but to be ‘leased’ so the ownership could remain with Pakistan Railways,” is the conclusion of details provided in these documents. However, this very point was never explained in the media in detail and people were misled.
After federal cabinet’s approval, initially a senior railways officer was deputed to market these lands. However, he was not marketing professional and thus an advertisement published by him in the newspapers yielded almost no results.
Following this top railways management hired top marketing professionals who published an advertisement, which also announced that anyone who has applied earlier needed to reapply with all required documents. Following which four big companies submitted their expression of interest but only one Malaysian firm, Maxcorp, qualified as it was the only firm that had relevant work experience and had offered the highest bid.
However, though the firm bid highest amount along with five percent share from the annual revenue with the minimum annual rent but demanded that total time period of the lease should be at least 66 years instead of the announced 33 years.
It also suggested that a good golf course comprised at least 140 acres of land so the land should be increased from 103 to 140 acres so as to enable the firm to construct an international standard course.
The documents show that as there was no firm with relevant experience and other firms not only had no experience they were offering nominal amounts to the railways the authorities decided that if Maxcorp needed some relaxation it will have to increase the revenue share. Thus with mutual agreement it was decided that Maxcorp will pay 10 percent of gross annual revenue (10% of gross revenue and not merely of profit) and total time period was agreed on 49 years.
The firm made huge investments and erected international standard buildings along with a golf course comparable to any golf course of the world and which is owned by Pakistan Railways.
There was also a second phase of this, which was agreed upon in the same agreement. The company was to construct a five-star hotel and was to pay 500,000 US dollars as commitment fee, Rs40 million per year minimum guarantee with an escalation of 15 percent every three years.
However, one of the most successful projects of Pakistan Railways’ history fell to continuous scrutiny of standing committees who never visited the site. Most members of these committees were old members who issued press statements and never ever visited the site.
A Senate standing committee however did visit the site and declared it a good deal. Public Accounts Committee also took up the matter in 2005 and all issues were settled after detailed briefing by the then secretary Railways, Shakil Durrani.
However, vested interests continued to raise baseless objections, which halted the initiation of second phase of the project and thus deprived the railways of big revenues. The foreign company after successful completion of this mega project completed golf course of D.H.A Karachi, Mangla Cantonment, Jacaranda Club Islamabad and has also landed many big projects of international standard in Pakistan.
Lt General (R) Javed Ashraf Qazi always insisted that senior politician Ishaq Khakwani had used his contacts and friends to present a twisted picture and wrong facts before the public to somehow get the land back in the heart of Lahore.
Qazi says he had saved drowning railways and brought it back on its feet. He gives numerous examples of successes and transforming the railways during his tenure and says his projects were sole source of earning of railways even till the present day.
Keeping aside other claims of Gen Qazi, the last one here is verified by The News as true. It was the view of the railway authorities at that time to lease out the club to some international firm so as to make it really functional with international standards and a profitable entity. It is also a fact that while carrying out this exercise some steps were taken which were not in accordance with rules.
On the other hand Ishaq Khakwani when approached by The News said that he had no interests in the old Railways Golf Club and was simply a member of this club. He said the club was under the administrative control of Railway divisional superintendent Lahore. He admitted that he became convener of the old members of the railway club after this club was dissolved.
Khakwani also admitted losing the case in Lahore High Court before Justice Khalil-ur-Rehman Ramday but alleged that Justice Ramday was under military pressure. Khakwani also admitted that he had withdrawn his petition from LHC. He referred to major flaws in awarding of contract that include a) advertisement was vague; b) 102 acres of land was advertised but 140 acres were awarded; c) advertisement was for 33 years and it was leased for 49 years.
Khakwani said that the railways authorities had visited Malaysia to meet officials of a golf firm even before the tender was floated.
Facts and fiction about Royal Palm Golf Course deal - thenews.com.pk
Ahmad Noorani
SLAMABAD: Keeping aside the rough and rude behaviour of ex-army generals after their recent appearance in NAB, if facts of the case are analysed objectively and without any emotions, the Railways Palm Golf Course was a wonderful deal.
Pakistan Railways was wasting big amount of money annually in running and managing the Golf Course Lahore, which was in use of some elite class members who would pay Rs12 per annum for 103 acres of land while after the new deal this course was earning Rs40 million annually while the land and newly constructed building were the ownership of the department, documents submitted in the Supreme Court explain.
A perception has emerged in the media at the whims of the powerful and mighty elite who had been using this club for decades that “Lahore’s prime land was converted into a gold club”, whereas the fact is that the same land was a gold club even before but was used by a select few. After the 2000 deal it was privatised and now was being used by hundreds of members, bringing millions for the money-less railway.
This land according to its category cannot be used for any purpose other than a golf course. Though generals of Pakistan Army have played havoc with this country but a careful analysis of the record of this whole case shows that this was a wonderful deal but there has been a consistent attempt to attack and fix some army generals for some other crimes committed by them or their colleagues.
A 103 acres Railway land piece situated on canal bank Lahore was categorised as golf course more than a century ago during the British era. The documents show that the golf course was used by a select group of the elite class and ironically Pakistan Railways was spending more than Rs200000 annually from its revenue to run and manage its affairs.
In 2000 the Railways was on the verge of collapse with Rs20 billion debt of the State Bank and was facing an annual loss of Rs2.5 billion. According to the documents submitted in the Supreme Court, the lease of this Railway land (which was only to be used as a golf course) started generating revenue of more than Rs40 million per annum (only profit generating unit of Pakistan Railways so far) with construction of mega buildings and a golf course of international standard with everything owned by none else but the Pakistan Railways itself.
However, after this lease was signed the members of the old golf club, headed by former railway minister Ishaq Khakwani, who played golf at the expense of poor railway passengers, started maligning the railways authorities and even it was said that Railways has sold the land worth billions for peanuts, a statement claimed.
It was alleged that some top managers of Pakistan Railways mostly belonging to the army had sold the precious national land to foreigners for peanuts. It was alleged that an important file of the bid offers was misplaced and area of the land and total duration of the project as was advertised was increased later through mala fide practices of the then top guns of Pakistan Railways.
For the last about ten years a select group of people continuously criticised the project and alleged that huge corruption had taken place at the time of leasing of this land. Print media record also shows that the point of view of only one side always appeared without the versions of other side.
The most important aspect is that even after passing of ten years no one from general public came to complain against this modification and huge construction facility at the Royal Palm Golf Course Lahore except those who were registered members of the old club and the same was highlighted in the media by their known friends.
These old members had challenged the deal in Lahore High Court where no one else but Justice Khalil-ur-Rehman Ramday was the judge. It is interesting to note that after hearing the initial arguments, Justice Ramday addressed the petitioners with following observation; “You should be ashamed before invoking the jurisdiction of this court. You were paying Rs12 per annum (twelve rupees per year) and now Pakistan Railways will earn Rs40 million per annum after this lease agreement.” The result was very simple.
These members of the old club never turned up at the LHC again and Justice Ramday dismissed the petition on May 4, 2001. These members again used their friends in the media hoping that the judiciary might have forgotten the old record and facts.
The replies show that one major point used to mislead the public was that the total per annum income was much lower whereas the land was very precious and its market value was four to five times the amount agreed upon.
“This seems to be correct as if the land was allowed to be leased on commercial basis for best possible commercial purposes the income would have been in billions but this land was marked and categorised as ‘golf course land’ and it was supposed to be used as a golf course in any case and was not to be ‘sold’ but to be ‘leased’ so the ownership could remain with Pakistan Railways,” is the conclusion of details provided in these documents. However, this very point was never explained in the media in detail and people were misled.
After federal cabinet’s approval, initially a senior railways officer was deputed to market these lands. However, he was not marketing professional and thus an advertisement published by him in the newspapers yielded almost no results.
Following this top railways management hired top marketing professionals who published an advertisement, which also announced that anyone who has applied earlier needed to reapply with all required documents. Following which four big companies submitted their expression of interest but only one Malaysian firm, Maxcorp, qualified as it was the only firm that had relevant work experience and had offered the highest bid.
However, though the firm bid highest amount along with five percent share from the annual revenue with the minimum annual rent but demanded that total time period of the lease should be at least 66 years instead of the announced 33 years.
It also suggested that a good golf course comprised at least 140 acres of land so the land should be increased from 103 to 140 acres so as to enable the firm to construct an international standard course.
The documents show that as there was no firm with relevant experience and other firms not only had no experience they were offering nominal amounts to the railways the authorities decided that if Maxcorp needed some relaxation it will have to increase the revenue share. Thus with mutual agreement it was decided that Maxcorp will pay 10 percent of gross annual revenue (10% of gross revenue and not merely of profit) and total time period was agreed on 49 years.
The firm made huge investments and erected international standard buildings along with a golf course comparable to any golf course of the world and which is owned by Pakistan Railways.
There was also a second phase of this, which was agreed upon in the same agreement. The company was to construct a five-star hotel and was to pay 500,000 US dollars as commitment fee, Rs40 million per year minimum guarantee with an escalation of 15 percent every three years.
However, one of the most successful projects of Pakistan Railways’ history fell to continuous scrutiny of standing committees who never visited the site. Most members of these committees were old members who issued press statements and never ever visited the site.
A Senate standing committee however did visit the site and declared it a good deal. Public Accounts Committee also took up the matter in 2005 and all issues were settled after detailed briefing by the then secretary Railways, Shakil Durrani.
However, vested interests continued to raise baseless objections, which halted the initiation of second phase of the project and thus deprived the railways of big revenues. The foreign company after successful completion of this mega project completed golf course of D.H.A Karachi, Mangla Cantonment, Jacaranda Club Islamabad and has also landed many big projects of international standard in Pakistan.
Lt General (R) Javed Ashraf Qazi always insisted that senior politician Ishaq Khakwani had used his contacts and friends to present a twisted picture and wrong facts before the public to somehow get the land back in the heart of Lahore.
Qazi says he had saved drowning railways and brought it back on its feet. He gives numerous examples of successes and transforming the railways during his tenure and says his projects were sole source of earning of railways even till the present day.
Keeping aside other claims of Gen Qazi, the last one here is verified by The News as true. It was the view of the railway authorities at that time to lease out the club to some international firm so as to make it really functional with international standards and a profitable entity. It is also a fact that while carrying out this exercise some steps were taken which were not in accordance with rules.
On the other hand Ishaq Khakwani when approached by The News said that he had no interests in the old Railways Golf Club and was simply a member of this club. He said the club was under the administrative control of Railway divisional superintendent Lahore. He admitted that he became convener of the old members of the railway club after this club was dissolved.
Khakwani also admitted losing the case in Lahore High Court before Justice Khalil-ur-Rehman Ramday but alleged that Justice Ramday was under military pressure. Khakwani also admitted that he had withdrawn his petition from LHC. He referred to major flaws in awarding of contract that include a) advertisement was vague; b) 102 acres of land was advertised but 140 acres were awarded; c) advertisement was for 33 years and it was leased for 49 years.
Khakwani said that the railways authorities had visited Malaysia to meet officials of a golf firm even before the tender was floated.
