PSMC Stakeholders Group writes letter to Chairman NA Committee Syed Hafeez-Ud-Din while expressing reservations on PSM, reconstituted BOD

ISLAMABAD/KARACHI, Oct 23 (SABAH): Pakistan Steel Mills Corporation Stakeholder Group has written a letter to the Chairman National Assembly, Standing Committee, Ministry of Industries & Production Syed Hafeez-Ud-Din while expressing reservations on PSM, reconstituted Board of Directors. The PSMC Stakeholder Group Convener Mumrez Khan said that it is Repetition of Blunders Committed by MOI&P/Government.

It has been said in the letter that the profit earning PSM has been deliberately destroyed by Ministry of Industries & Production (MOI&P)/successive Governments, initiated non-transparent privatization process, appointed non-professionals (men of choice not knowing the functions of integrated steel plant) to benefit the private sector few companies & never monitored their performance negatively costs to PSM more than Rs 700 billion (losses + mounting payable debts liabilities) + allegedly more than $ 18 billion to country Economy and loss of revenue to Federal Board of Revenue (FBR) during 2005-2024. PSMC Stakeholders Group, have serious “Reservation on PSM Reconstituted BOD, is Repetition of Blunders Committed by MOI&P/Government” keeping in view the ‘performance’ of previously appointed non-professionals but the alleged accused persons at fault remained unaccountable despite Supreme Court observation vide its judgment dated 23-6-2006, in CP 9/2006 and direction to NAB on 16-5-2012, in Suo moto corruption case SMC 15/2009. Public Accounts Committee forwarded the Peoples Workers Union complaint to FIA for inquiry in July 2022 vide No. 44/2022 is pending for completion. MOI&P forwarded a complaint to FIA thefts of precious materials is still pending for completion vide No. 46/2022.

PSM was removed from active privatization list on 4th October 2023, by SIFC Apex Committee and directed to the MOI&P for constitution a Committee for submission of “Viable Options” about the future of PSM. MOI&P, constituted an eight members committee under the convenorship of Secretary MOI&P but no meeting has been convened till-date. MOI&P assigned the additional charge of CEO, PSM to its additional secretary-1, vide office order dated 3rd May 2024, in violation of SOEs Act 2023.

We brought this violation in the notice of PSM BOD, MOI&P and Standing Committee but remained unnoticed as yet. The blunders committed by additional secretary -1, disconnection of COBP gas supply without expert’s opinion, appointed Corporate Secretary without the approval of BOD to a very junior Deputy Manager are the final nail in the coffin of PSM, victimized the serving employees, residents of steel town and Gulshan -e-Hadeed but remained unaccountable despite complaints by chairman PSM BOD, Insaf Labor Union (CBA) PSM and Stakeholders’ Group.

We briefed the National Assembly Standing Committee on 15-8-2024 and exposed the MOI&P one-sided stereo types misleading information and incorrect financial data submitted to SIFC APEX Committee, Parliament and its Standing Committee. We, appreciate that all the Honorable Committee members unanimously oppose the closure of PSM, without due diligence and constituted a four members Sub-Committee under the convenorship of Ms. Naz Bloch, to hear the grievances of victimized employees and other stakeholders.  National Assembly Standing Committee sent the recommendation to MOI&P vide letter dated 29-8-2024. Regrettably, after passage of more than 9 weeks, the Sub-Committee have not visited the PSM and SIFC APEX Committee has approved the liquidation of PSM on 29-8-2024, without realizing its financial and economic impact.

PSM would have not been in the present situation, if the previous parliamentary committees have properly monitored the performance of MOI&P/PSM BOD/Management.  PSM can be revived by local trained human resources, if MOI&P/SIFC/Government play their responsible role in reconstituting knowledgeable BOD, appointment of professional Management, resumption of Land, initiation of accountability process for financial recoveries from alleged accused private sector beneficiaries and their counter-part facilitators in power corridors having assets beyond means. PSM is a fit case for accountability of all the “Pillars of State” performance negatively costs to country economy/public exchequer.

MOI&P lied to ECC on 3rd June 2020, used the shoulder of Supreme Court, paid the heavy amounts to legal counsels to defend the blunders committed in retrenchment of employees by a CEO, PSM appointed without any direction in CA 327/2020 from Supreme Court and filed a case No. 01/2020, in Labor Court to lay-off the workforce.

6. “Scraping PSM without due diligence & its Liquidation approved by SIFC APEX Committee” roadmap adopted by MOI&P/Government, is waste of time & money, leading to further financial/economic disaster. The major issue is daily financial bleeding more than Rs 140 million per day continues due to delay in appointment of professional management and settlement of payable debts liabilities.

We, are still available for briefing to Prime Minister of Pakistan, SIFC APEX Committee, parliamentary Committees and government economic team the causes of declining production process during 2008-15 to prove the potential of PSM from historical facts from 1971 to 2024 and its trained human resources. PSM is a fit case for accountability of all the “Pillars of State” performance costs to country economy and public exchequer.

It has been stated in the letter that PSM can be revived by local trained human resources, if government play its responsible role in reconstitution of knowledgeable BOD, appointment of professional Management, resumption of land, initiation of accountability. It will help the SIFC/Government in resolving the country economic crises, grievance of victimized employees’ residents of steel town and Gulshan E Hadeed protesters & unnecessary litigation from victimized stakeholders/taxpayers.