Ailing PSM seeks Rs75m to foot staffers’ power bills
Economic Coordination Committee orders probe
Economic Coordination Committee orders probe. PHOTO: FILE
ISLAMABAD:
The Economic Coordination Committee (ECC) is said to have launched an investigation into the provision of free electricity to as many as 12,500 employees of the Pakistan Steel Mills (PSM), resulting in losses to the national exchequer running into tens of millions of rupees. The issue was taken up in the December 15 meeting of the ECC.
A senior official of the industries ministry said the minister of state for information technology and telecommunications pointed out that the PSM had sought Rs75 million for paying the electricity bills, adding that the amount was substantial and the steel mill was currently almost non-functional.
She wondered if the PSM was also paying electricity bills of its employees. She said the management should clarify whether these payments were being made because of contractual obligations or otherwise.
PSM’s Chief Financial Officer later informed the ECC that currently, the PSM employed 12,500 people and the payment of their electricity bills was part of the terms and conditions of their employment. The ECC directed the privatisation division to submit details of the employees’ contracts under which their electricity bills were being paid by the PSM.
Subsequently, the privatisation division informed the ECC on November 10 that it had approved payment of salaries for three months to the PSM employees
– for June, July and August – from the funds available to the PSM on account of the land it had leased out to the Port Qasim Authority.
However, the decision about the sale of PSM’s inventory to meet its day-to-day expense was left pending. Pursuant to the decision, the PSM was informed that the salaries of its employees could only be paid till mid of August this year as miscellaneous expenditures, such as funds for electricity, water, medical and ‘leave fare allowance’ had been made before ECC’s decision.
The privatisation division also stated that the PSM’s production had been halted in June last year when the Sui Southern Gas Company had reduced gas pressure.
Since the PSM had exhausted its inventory of finished goods and it was not permitted to sell off its unfinished inventory without prior permission of the privatisation division, the PSM would require Rs190 million to pay its monthly day-to-day expenses to keep the mills operational at the required heating mode.
The privatisation division apprised the meeting that the employees had not been paid salaries since mid-August this year and requested the ECC of the cabinet to consider the proposal for disbursing the remaining 50% salary for August this year amounting to Rs190 million and Rs380 million for September, totaling Rs570 million.
Published in The Express Tribune, December 24th, 2016.
The Economic Coordination Committee (ECC) is said to have launched an investigation into the provision of free electricity to as many as 12,500 employees of the Pakistan Steel Mills (PSM), resulting in losses to the national exchequer running into tens of millions of rupees. The issue was taken up in the December 15 meeting of the ECC.
A senior official of the industries ministry said the minister of state for information technology and telecommunications pointed out that the PSM had sought Rs75 million for paying the electricity bills, adding that the amount was substantial and the steel mill was currently almost non-functional.
She wondered if the PSM was also paying electricity bills of its employees. She said the management should clarify whether these payments were being made because of contractual obligations or otherwise.
PSM’s Chief Financial Officer later informed the ECC that currently, the PSM employed 12,500 people and the payment of their electricity bills was part of the terms and conditions of their employment. The ECC directed the privatisation division to submit details of the employees’ contracts under which their electricity bills were being paid by the PSM.
Subsequently, the privatisation division informed the ECC on November 10 that it had approved payment of salaries for three months to the PSM employees
– for June, July and August – from the funds available to the PSM on account of the land it had leased out to the Port Qasim Authority.
However, the decision about the sale of PSM’s inventory to meet its day-to-day expense was left pending. Pursuant to the decision, the PSM was informed that the salaries of its employees could only be paid till mid of August this year as miscellaneous expenditures, such as funds for electricity, water, medical and ‘leave fare allowance’ had been made before ECC’s decision.
The privatisation division also stated that the PSM’s production had been halted in June last year when the Sui Southern Gas Company had reduced gas pressure.
Since the PSM had exhausted its inventory of finished goods and it was not permitted to sell off its unfinished inventory without prior permission of the privatisation division, the PSM would require Rs190 million to pay its monthly day-to-day expenses to keep the mills operational at the required heating mode.
The privatisation division apprised the meeting that the employees had not been paid salaries since mid-August this year and requested the ECC of the cabinet to consider the proposal for disbursing the remaining 50% salary for August this year amounting to Rs190 million and Rs380 million for September, totaling Rs570 million.
Published in The Express Tribune, December 24th, 2016.