PSMC Stakeholders Group urges Additional Secretary Incharge, MOI&P a meeting prior to decision of PSM future by SIFC Apex Committee

KARACHI, Jan 02 (SABAH): Pakistan Steel Mills Corporation Stakeholders Group has written a letter to Rashid Mahmood Langrial Additional Secretary Incharge, Ministry of Industries & Production and urged a meeting prior to decision of PSM future by SIFC Apex Committee to avoid the repetition of blunders committed by previous governments during 2005- 23.

PSMC Stakeholders’ Group welcomes your appointment as in-charge Secretary Ministry of Industries and Production (MOI&P). “We, understand that future of Pakistan Steel Mills (PSM) can be decided after provision of correct historical information’s and authentic financial data required for settlement of payable debts liabilities. We, failed in completion of PSM construction/installation of plant up to 2.2 MTPY and further Expansion up to 3 MTPY in a period of 50 years.”

“In this regard, a false narrative is circulating in electronic/print media against PSM without verification/investigation despite Supreme Court of Pakistan observation in its judgement CP No.9/2006, direction in SMC No.15/2009 and complaints by PSMC stakeholders’ group/Insaf Labor Union (CBA), Peoples Workers, Progressive Labor Union and other individuals. Who Turned the PSM: “Asset to Financial Liability” during 2005 to 2023 and are unaccountable despite Supreme Court observation, direction and complaints by stakeholders?” PSMC Stakeholders’ Group stated.

“MOI&P, officials would have briefed you about PSM’s affairs the ‘facts’ provided by controversial Board of Directors (BOD) illegally appointed Corporate Secretary and illegal Executives Committee Management (ECM) are misleading. Following questions response from your subordinates would help you in understanding the case: whose responsibility, (besides MOI&P) is to monitor the performance of BOD/Management & peruse the cases in Courts of Law to save the Assets of PSM,” It furthered.

“And who were held responsible in MOI&P monitoring report (if any) COBP repair history from 2005 to 2023, financial cost, to preserve the batteries, procurement of met coke for sustainability of production, items purchased on exorbitant prices through spot tenders and fine slapped by International Court in case of M/s FOMENTO, SESSA GOA & M/s Coniston?” PSMC Stakeholders’ Group stated.

“Further such questions are what are hurdles in removal of present BOD appointed by government/MOI&P, allegedly involved in administrative/financial irregularities, vide FIA inquiries No.44/2022, & No. 46/2022, have not removed the alleged officials’ facilitated thefts of precious material and land grabbing; what is present management structure, their qualifications, knowledge, experience and allegations against them observed by Auditor General of Pakistan including the irregular appointment of a CEO without any direction from supreme Court in CA 327/2020, illegally retrenched more than 5,500 permanent employees and filed an illegal application No. 01/2020, in Labor Court for termination of all employees?” PSMC Stakeholders’ Group added.

“What are hurdles in appointment of permanent CEO, CFO, PEOs and General Managers, required for the administration, financial discipline and operation of the plant for production? Is it correct that PSM earned 13 years Net profit out of 23 years’ operating profit continuously from 1985 to 2008 and earned net profit in financial year 2021-22? What were factors leading to PSM losses from 2005 to 2021 & July 2022 to Dec 2023? What are hurdles in provision of PSM accounts financial data from July 2022 to December 2023?” It stated.

PSMC Stakeholders’ Group stated, “PSM delisted from the active privatization list on 30-10-2023 by Cabinet. Privatization Minister, Fawad Hassan Fawad, declared to PSM as “Dead Asset” without investigation. PSM assets were more than Rs 839 billion (audited) as on June 2022. We protest against Privatization Minister, strongly condemned the statement against PSM and appeal for investigation to set the official record straight. We, also protest against the allotment of land to SEZ and Garment City prior to deciding the future of PSM and status of employees 12% shareholding not transferred in Employees Trust Fund as yet.”

PSMC Stakeholders’ Group stated the Ministry of Privatization Division/Commission (PC) failed in privatization of profit earning PSM from 2005 to 2023 and deliberately destroyed the profit earning mills to benefit private sector few companies but unscrupulous elements involved in Omission & Commission violated rules & regulations by public office holders remained unaccountable despite Supreme Court of Pakistan observation in CP 9/2006. Following questions response would help in exposing the out of place allegations of Fawad Hassan Fawad.”

“What was PSM shares book value as on June 2008 comparing with June 2022? What was Supreme Court observation in CP 9/2006, and annulled the nontransparent privatization, cancelled the Letter of Intent (LOI) dated 31-3-2006 and Share Purchase Agreement (SPA) dated 24-6-2006? Is it correct that PC withdrew its review petition filed in Supreme Court against CP 9/2006 judgement? What is the status of M/s Arif Habib Group review petition after passage of 17 years filed in Supreme Court against CP 9/2006 judgement?” PSMC Stakeholders’ Group stated.

“PSMC Stakeholders’ Group stated reportedly, PSM is further financially bleeding more than Rs100 million per day and MOI&P-SIFC has not removed PSM BOD allegedly involved in more than Rs 284 billion administrative/financial irregularities plus facilitated more than Rs 10 billion thefts of precious materials inquiries initiated by FIA vide No. 44/2022, & No. 46/2022, on the direction of Public Accounts Committee and MOI&P,” PSMC Stakeholders’ Group maintained.

It furthered, “PSMC Stakeholders Group, “Request for Meeting Prior to Decision of PSM Future by SIFC APEX Committee to Avoid the Repetition of Blunders Committed by Previous Governments During 2005- 23, allegedly Negatively Cost to PSM were more than Rs 700 billion + $ 15 billion negatively cost to Country Economy/Public Exchequer”, but persons at fault (beneficiaries & their facilitators public office holders in power corridors) remained unaccountable as yet despite complaints.”

“We are available to clarify the Government SIFC APEX Committee, “Revival of PSM plan & financial recoveries (as whistleblowers) through process of transparent accountability by NAB”, as proposed in 2019 but PSM Corporate Secretary was asking for alternate suggestions at that time. Copy of the letter is attached as Annex-A for verification, “Provision of jobs to technical human resource, engineering industries, construction sectors, argo-tech & reduction in country import bill crises cannot be resolved without revival of PSM,” PSMC Stakeholders’ Group concluded.