Tag Archives: NLC

Guess it doesnt harm national sovereignty when Pakistan army gets into secret deals with US; that’s only for bloody civilians

Army has its eye on Nato supplies deal

By Khawar Ghumman

ISLAMABAD: The bankrupt Pakistan Railways management has pulled off the mother of all deals with the NLC, while the army is working hard behind the scenes for an equally big deal with the United States.

In the first week of February, railways signed a deal with the military-run National Logistics Cell (NLC) under which the cell will repair 30 railway locomotives of which 15 will be returned to the railways to use. The other 15 will be used by the NLC to carry freight booked by the NLC.

What does the NLC get out of this deal? This was a question that proved hard to answer as the NLC and the ISPR never bothered to reply to any questions despite a weeklong wait.

However, Dawn has learnt that the military is gearing up to earn big bucks from the transport of US/Nato/Isaf supplies via Pakistan’s land routes in the near future and this is what is behind the NLC deal with the railways.

In fact, negotiations between the Pakistan military and the US started as far back as 2009 for a share of the transport pie that has earned many individuals and companies in this country millions since the start of the war in Afghanistan over a decade ago.

A source within a transport company that carries military supplies to Afghanistan confirmed that trial runs were carried out at the request of the American government in 2009 and 2010; from Karachi to Peshawar and from Karachi to Chaman to not just see if the rail routes worked but also how long the journey took. “The journey to Chaman took seven days which was an improvement on the trucks as the increasing number of FC checkpoints was causing delays,” the source said.

It now appears that while the US waits for the parliamentary review of bilateral relations that was ordered after the Salala incident, behind the scenes the two sides are negotiating the terms and conditions for transporting Nato and American supplies to Afghanistan.

An official in the Foreign Office confirmed that the Americans, Nato officials based in Afghanistan, the NLC and the Foreign Office were working out some plan to use the railway for supplies to Nato forces in Afghanistan.

The recent trip by the newly appointed ambassador to the US, Sherry Rehman, to Pakistan was part of these negotiations, the official said.

This, however, is not the only price that is being demanded. Fees to use the roads as well as a charge at the port may also be negotiated.

The bi-partisan and bi-cameral Parliamentary Committee on National Security has also demanded that a fee be imposed on Nato trucks using roads in Pakistan as well as charging them around Rs30 billion for the repair of roads.

There is a third fee that may also witness a hike once these negotiations are over, although it is not confirmed.

At the Karachi port, goods for Afghanistan are charged at the rate of Rs15,000 per piece, while goods that have arrived from Afghanistan and are on the way out are charged Rs20,000.This fee was imposed in 2010 before which the NLC charged Rs5,000 per item for goods on way to Afghanistan. One reason these negotiations have become so important is that the country is trying to thrash out a deal where none existed to begin with.

After the 9/11 attacks and the quick decision of the allied states to invade Afghanistan, Pakistan could not negotiate any terms, monetary or otherwise, for the movement of US and Nato supplies through it.

As a result, the US reserved the right to choose the companies for the transportation of its supplies.

For Nato/Isaf and British military supplies, the NLC could select or nominate companies.

As a result, Pakistan was used as a route without the state making any money from a business that was worth big bucks.

Over time, Pakistan’s land routes became an important part of the war effort.

According to one estimate, the American supplies constitute about 70 per cent of the goods transported through Pakistan.

US Transcom Commander Gen William Fraser testified this year that “in 2011 more than 35,000 containers were delivered” through Pakistan.

When US embassy’s spokesman Mark Stroh was asked about the deal between the NLC and the railways, he said: “We are aware of the agreement but since the ground shipping lines remain closed, the effects of the agreement with regard to our shipping remain to be seen.”

However, observers say there is a chance that the Pakistan Army will end up with some share of the pie as no other route is as economical as the one through Pakistan.

At the moment, the Americans and the allies are flying in supplies but this is expensive. In addition they are using the ‘Northern Distribution Network’, a variety of routes across Central Asia that originate in Europe.

According to a report by the US National Public Radio, these routes cost “two or three times as much as shipping them by sea and moving them up through Pakistan”.

And the impending elections in the US and its financial constraints may be important factors influencing its decision, especially as the planned drawdown in Afghanistan may mean an increase in the supplies leaving the country.

In this regard, the Salala incident simply provided an opportunity to the army to increase its leverage on the issue.

It now remains to be seen what the outcome is and what the army ends up with.

At a time of dwindling aid and assistance from the US, ‘Rawalpindi’ may just strike gold with the NLC and the war in Afghanistan. …

Read more » DAWN.COM

First time in the democratic history of Pakistan – Public Accounts Committee calls for report against three retired generals

PAC calls for report against three retired generals

By Kalbe Ali

ISLAMABAD: For the first time in the country’s democratic history, the Public Accounts Committee of the National Assembly has directed the defence ministry and the GHQ to submit a report on corruption charges against three retired generals.

The generals were allegedly involved in misadventures in the stock exchange which caused a loss of about Rs2 billion to the National Logistics Cell (NLC).

A meeting of the PAC held here on Saturday also took notice of the killing by Rangers personnel of an unarmed youth in Karachi and officials of the interior ministry informed the committee that activities of Rangers were being monitored.

The meeting, presided over by Chaudhry Nisar Ali Khan of the PML-N, asked the defence ministry to submit the report on NLC scam to the PAC Secretariat by June 30.

Saeed Zafar, a member of the PAC, said the committee had been waiting for the past seven months, but the GHQ was to submit its report on the scam to the committee.

The defence ministry officials said the GHQ had already completed its inquiry into the scam and would soon forward a report to the ministry.

“The three retired army general and a bureaucrat need to be brought to justice,” Chaudhry Nisar said, adding: “I have also told the army chief that the inquiry has to be in light of three audit reports already conducted into the NLC affairs.”

The NLC is a subsidiary of the Planning Commission but has traditionally been dominated by the army. It is being headed by a serving major general and various army officers are working as his subordinates.

According to an audit report, the NLC management had obtained illegal and unauthorised loans of Rs4.3 billion between 2004 and 2008 for investment in the volatile stock market and suffered a loss of Rs1.84.

The PAC chairman told the defence ministry officials that obtaining the report from the GHQ would not be a problem. “Gen Ashfaq Kayani has already assured me,” he said.

At an earlier meeting of the committee, NLC Director General Maj-Gen Junaid Rehmat had said the NLC was paying Rs2.7 million per day as mark-up on the loans illegally obtained for investment in the stock market.

SC BUDGET AUDIT: The PAC was informed by its secretariat that it had written to the Supreme Court chief justice a letter complaining that despite repeated requests the court registrar was not appearing before the committee to inform it about the audit of SC budget.

The PAC has been asking the Supreme Court to get its audit done as per regulations. ….

Read more: → DAWN.COM

PAC Chairman Nisar Ali Khan sitting on inquiry report against the four generals for six months

Luxury cars rendering ‘defense services’

NLC bigwigs imported seven Land Cruisers twisting rules. PAC Chairman Nisar Ali Khan sitting on inquiry report against the four generals for six months

The NLC bosses are already facing Rs 4 billion mega financial scam.

by Rauf Klasra

View Point Online

ISLAMABAD: Top guns at GHQ-run National Logistic Cell (NLC) have been caught committing a fraud costing the Government of Pakistan and country’s taxpayers millions of rupees. Quietly under the pretext of ‘‘Defense Services,” some NLC bigwigs imported seven duty-free luxury 3000cc Toyota Land Cruisers worth over Rs10 million. These vehicles were imported for personal use in Islamabad and Rawalpindi. However, even when caught red handed, all powerful military elite involved in the scam has been let off the hook.

Continue reading PAC Chairman Nisar Ali Khan sitting on inquiry report against the four generals for six months