NEW YORK: The fate of Pakistan International Airlines owned hotel Roosevelt in New York will be decided on October 12, in Paris and the lowest bid of $ 217 million of Freedman A Hotler, received by Privatisation Commission is expected to be finalised.
The Privatisation Commission already rejected the highest bid of $ 224 million filed by prominent entrepreneurs Donald Trump. The company owns famous Trump Plaza in New York and the Taj Mahal Casino in Atlantic City, New Jersey.
According to reports, Freedman’s bid was complied without any invitation and others were turned down and not sent any required documents to submit their bids securing his position and generating loss of millions of dollars for Pakistan in foreign exchange reserves. Several companies had plans benefiting Pakistan and its exports by adding condition in the sales contract for importing Pakistani made products for 10 to 15 years for the hotel use after paying millions of dollars in purchase. It included cutlery, bed sheets, towels, kitchen utensils, etc.
One of the company had also offered to provide roughly 2000 sq ft of space for the Pakistan commercial section to built Pakistan Export Display Centre and this space was free of rent for 15 years in full. A Pakistan International Airlines delegation stayed in New York for three weeks and did not meet any of the interested buyers having several beneficiary proposals in their buying bids.
just wondering how much kickbags going to who? in this deal and why they are going for the lowest bid?
Am I reading this right. The hotel goes to the lowest bidder !!! Isn't it supposed to go to the highest bidder? How corrupt is Pakistan that a sale like this is widely reported and the government doesn't do anything about it? Well, Mushy what do you say to this?
[QUOTE]
*Originally posted by xguru: *
Am I reading this right. The hotel goes to the lowest bidder !!! Isn't it supposed to go to the highest bidder? How corrupt is Pakistan that a sale like this is widely reported and the government doesn't do anything about it? Well, Mushy what do you say to this?
[/QUOTE]
same thing Mushy said when le let go Nawaz with some great deal.. though the deal must had been the highest one..
Re: Roosevelt Hotel to be sold at lowest bid of $ 217m
[QUOTE]
*Originally posted by Shak killS: *
NEW YORK: The fate of Pakistan International Airlines owned hotel Roosevelt in New York will be decided on October 12, in Paris and the lowest bid of $ 217 million of Freedman A Hotler, received by Privatisation Commission is expected to be finalised.
The Privatisation Commission already rejected the highest bid of $ 224 million filed by prominent entrepreneurs Donald Trump.
[/QUOTE]
Has Freedman offered any other long-term benefits - such as discounted rate for PIA staff, and Pakistani dignitaries for many years to come? There may be other benefits that people may not be aware of. Sometimes a lower bid does not work out badly in the long run.
Without seeing the full facts, I am not sure how people can make a judgement?
could someone post details of the "winning" bid?
Kickbacks apparently were paid in the Sabre reservations system deal too of some years ago. The PIA reservation system was to be moved to Bombay!!! if I remember right.
Tom sawyer has it right, its not just the total amount but the method and schedule of payment which is important as well. other bids in entireity mayave been higher but could have been spread over a longer period or could have had mixed isntruments of payment which were not desireable.