‘PSM privatisation process during 2018-19 was non-transparent’
The PSM Stakeholders Group claimed that the privatisation process during 2018-19 was non-transparent which caused further financial losses to the public exchequer.
KARACHI: The Pakistan Steel Mills Stakeholders Group claimed that the privatisation process during 2018-19 was non-transparent which caused further financial losses to the public exchequer.
A letter was sent by PSM Stakeholders Group to PSM CEO Dr Saif-ud-din Junejo, Federal Secretary of the Ministry of Industries and Production Imdadullah Bosal and Federal Secretary of the Privatisation Division Iram A Khan.
The letter stated that the PSM privatisation process during 2018-19 was non-transparent and it led to further financial disaster.
How PSM was deliberately destroyed to benefit private sector?
It read, “PSMC Stakeholders Group, feel its responsibility to inform the new Secretaries Ministry of Industries & Production (MOI&P)/Privatization Division (PD) and Chief Executive Officer (CEO) Pakistan Steel Mills (PSM) that they are being misled about the causes of persistently deteriorating affairs of the Milis” by the subordinate officials without any fear of accountability. Appeal for review “PSM privatization process initiated in 2018-19 is non transparent and leading to further financial disaster” prior to submission of further “Retrenchment of Employees” report (Annex-A) in Supreme Court of Pakistan keeping in view the legal implications from 2006 to 2022.”
It added, “SM was delisted on 31st October 2018 from active privatization list by Cabinet Committee on Privatization (CCOP) and directed to MOI&P for submission of operationalization plan. MOI&P proposed operationalization ‘plan’ through privatization to benefit the private sector which is non-transparent without the approval of Council of Common Interests (CCI), without NOC from Government of Sindh related to land issues and not taken into confidence the employees who are 12% shareholders in PSM according to documents submitted in Supreme Court of Pakistan and noted in audited balance sheets from 2009 to 2021. But the shares were not transferred in “Employees Trust Fund” reasons best known to Management/Board of Directors/MOI&P. The payment of PSM employees’ legitimate dues was to be made “Buy Back Purchase of Shares on Book Value” from the retiring employees.”
“Profit eaming PSM was deliberately destroyed during 2005 to 2022 which negatively costs to country economy/public exchequer more than $ 12 billion on three accounts (Losses to PSM+Loss of Revenue to FBR on account of discriminatory steel import tariff + additional iron & steel import bills negatively impacted country Balance of Payment) and persons at fault (beneficiaries and their facilitators public office holders in power corridors) remained unaccountable as yet (PSMC Stakeholders Group complaints/plea communicated through several letters to MP and PD for investigation “Factors leading to losses” for fixation of responsibilities and accountability for financial recoveries remained unnoticed.”
The PSM Stakeholders Group requested to review the non-transparent privatization process initiated in 2018-19 leading to further financial disaster in order to stop the PSM financial bleedings.
“Only from 30 June 2018 to 30 June 2021, during first three years of PTI government, PSMC incurred audited financial losses of Rs 48,846 million (i.e. on average Rs 44.6 million per day losses added) and increase in payable liabilities of Rs 94,764 million (i.e. on average Rs 86.54 million per day liabilities added) whereas the accounts of FY 21-22 have not yet been audited for reporting. Up-to June 30, 2021, the accumulated audited financial losses of PSMC were Rs 222,942 million and payable debt liabilities were Rs 305,296 million, whereas till August 2022 the amount payable to SSGC on account of outstanding gas bill and LPS is Rs 82,409 million which is not booked in PSMC accounts.”
It concluded, “PSM is a fit case for investigation to expose the self-proclaimed “Patriots, Democrats & Champion of Accountability” public office holders enjoying without accountability at the cost of taxpayers. All the pending issues related to Revival of PSM, its employees (serving/victimized) issues can be resolved through tripartite meeting in between Federal Government, Government of Sindh and Stakeholders representatives would save time & money. PSM revival by reconstituting BOD, appointing professional Management is easy comparing with completion of non-transparent privatization process keeping in view the chronology of events from 2005 to 2022 negatively costs to country economy/public exchequer.”
News360 reported earlier that despite multiple letters sent to the federal authorities over complaint of the People’s Workers Union, the Federal Investigation Agency (FIA) has made no progress on the investigation into the Rs10 billion theft case in the state-owned Pakistan Steel Mills (PSM).
The PSM theft incidents were reported by the People’s Workers Union and appealed for a suo motu notice or probe through FIA against the PSM board of directors and management for their criminal negligence which costs the mills and exchequer Rs284 billion from 2018 to April 2022.
