The Supreme Court was informed on Thursday that Rs 28 billion was required to rehabilitate Pakistan Railways and a major portion of the amount would be allocated towards the repair of locomotives.

A two-member bench of Chief Justice Iftikhar Muhammad Chaudhry and Justice Shakirullah Jan has been hearing a suo motu case relating to non-payment of salaries and pensions to employees and workers of Pakistan Railways.

During the course of hearing, Railways Chairman Javed Iqbal submitted a comprehensive report in pursuance of SC orders which said that all dues were paid to pensioners and employees of railways whereas new accounts of pensioners were being opened in banks near their residences for payment of pensions in future.

The CJP inquired how much money was required for the overhauling of stalled trains, adding that Rs28 billion was needed "but where will such substantial amount come from"?

Former railway minister Sheikh Rasheed Ahmad, who became a party to the case, contended that Railways had not yet cancelled agreements with China over the purchase of new locomotives. He added that 50,000 tons of scrap was sold for Rs 27,680.

"We have seen Federal Investigation Agency's performance in NICL case; it is the time to test new chairman NAB," CJP remarked and directed Attorney General Maulvi Anwarul Haq to send the case to the NAB. The CJP also asked him not to spare anyone involved in corruption. "We will summon chairman NAB on the next hearing," the CJP added.

The Chairman Railways apprised the bench that 14 officers of railways were suspended initially on charges of corruption. However, three of them had been removed, he added.

According to him, an agreement has been signed with China for the purchase of 70 new locomotives.

The former Railways Minister told the bench that railways had been paying Rs 125,000 per day interest against advances for the purchase of new locomotives whereas the locomotives were yet to be purchased.

Addressing the chairman railways, the CJP asked whether the PPRA rules were deviated in the purchase of new locomotives. The Chairman Railways admitted that there were some discrepancies in the new purchase of locomotives. He added that PPRA rules were deviated minutely, but presently the matter was sent to Economic Coordination Committee (ECC).

The CJP said that the court would not allow anyone to sell country's institutions, adding that people who could not do their job properly could go home. Underscoring the need for transparency in the Railways, he said corrupt officials could be sent to jail.

The Chief Justice directed the chairman railways to get forensic audit of railways whereas the court directed Lahore High Court to expedite the proceedings of a case related to irregularities in the sale of Railways scrap. The court adjourned the case till Nov 23.