ISLAMABAD - Massive financial losses and sheer violations of set patterns have been unearthed by the Auditor General of Pakistan in the accounts of Pakistan Railways during the award of tender for the sale of scrap material in fiscal year 2010-11. Sources said that the Pakistan Railways has been facing a financial deficit of around Rs42 billion due to corruption; mismanagement and lack of locomotives while Rs21 billion are being spent on wages and pensions. They said that due to high deficit of the department, no new scheme has been introduced in the Public Sector Development Programme (PSDP) 2010-11. In the same way majority of ongoing projects have also been delayed. Available documents revealed that tender for the sale of scrap material consisting of various types was opened on 25th November, 2008, but the same was filed on 31st January, 2009 as the tender committee could not devise a mechanism to evaluate the bids. Subsequently, the tender was reopened on 8th May, 2009 illegally and without justification the tender committee recommended re-floating the tender. Pakistan Railways (PR) made a mess of the whole affair by awarding the contract to different bidders one after the other. The matter went into litigation and ultimately FIA took cognisance of the matter and stopped lifting of scrap. Resultantly, the matter got complicated due to repeated injustices and non-transparent decisions by PR. Had PR adopted a transparent policy for sale of scrap at market price, it could have earned Rs 960.770 million on materialisation of tender due to award of contract at lower rates, Audit Report Fiscal Year 2010-11 of Auditor General of Pakistan argued, adding Nevertheless, PR may sustain loss of Rs 375.627 million on materialisation of tender due to award of contract at lower rates. Similarly, tender for the sale of scrap in bulk was opened on 4th January 2010. The tender committee in its meeting held on 7th January and 3rd February, 2010 recommended for filing the tender on account of it being less than the market rate as well as due to discrepancies/ violations in tender conditions. It is a testimony of the facts that out of the total budget allocated for Railways during the ongoing fiscal year 2010-11, Rs5.982 billion was earmarked for repairs and maintenance of commercial and passenger wagons, Rs800 million for rehabilitation of Railway tracks, Rs200 million for doubling of the track on Lodhran-Khanewal section with Foreign Exchange Component (FEC) of Rs150 million and Rs250 million for procurement/ manufacture of 530 high capacity wagons with FEC of Rs20 million.