Pakistan

Pakistan Steel Mills: Court calls for quick investigation

Supreme Court chief justice seeks forensic audit report within a month.

Qaiser Zulfiqar March 10, 2011

ISLAMABAD:

The Supreme Court of Pakistan on Wednesday directed the Federal Investigation Agency (FIA) to expedite investigation into the corruption at Pakistan Steel Mills (PSM), a government-run industrial unit.

Chief Justice Iftikhar Muhammad Chaudhry, presiding over the case, asked the PSM management to submit a forensic audit report of its accounts within a month, disregarding a plea entered by the Pakistan steel mill’s counsel Fakhruddin Ibrahim that the auditor preparing the report would not be able to complete it in less than three months.

Management officials at the state-owned enterprise are alleged to have sold steel at prices below PSM’s operational costs to as many as 469 steel dealers. Among alleged beneficiaries was the Pakistan National Shipping Corporation (PNSC), another state-owned enterprise that is also publicly listed on the Karachi Stock Exchange.

PSM reported a net loss of Rs26.5 billion in 2009, another loss of Rs11 billion in 2010 and has thus far accumulated a net loss of Rs5.7 billion in the first six months of the financial year ending June 30, 2011. The company has had to be bailed out by the federal government in 2010 through a Rs25 billion injection of capital into the firm.

The court ordered PSM to focus on minimising losses and recover money from people who had allegedly defrauded it. The court did not specify the mechanism for recovery of money. A case is yet pending against steel dealers accused of being involved in defrauding the PSM.

The lawyer for the steel dealers association said that his clients were cooperating with the investigation and the recovery process.

When PSM maintained that the association had returned just Rs25 million in compensation, the chief justice accused the steel dealers’ association of deceiving the court since the losses because of their actions were estimated to be in billions.

The precise amount of these losses is not yet known since an investigation into the matter has not been completed.

Later, the court adjourned the case for one month.

Published in The Express Tribune, March 10^th, 2011.

COMMENTS (2)

shahbaz khan | 12 years ago | Reply I m employee of pakistan steel working since last 28 years still Jr.Officer.and hold Master degrees hamid perwaiz promoted those person who were working in their office others are worried for promotions. the main reason of psm collespe is corrupt managment one of Hamid Perwaiz he is simple B.A Got lot of promotions within his job and create lot enaminy all employees are furstered everybody take their files for promotions they not take interest to doing work mostly DGMs take one lakh salary but they have been sleeping it is big lost, all retired PSM officers working in private steel mills like Aisha Steel,ILL, meropolitain,etc

Shahryar Ahmed | 13 years ago | Reply I think the case against the halting privatization of Pak Steel should also be registered. If Pak Steel was such a profitable company (going at over USD 500 Million) at the time of it's deal, than how come in 2 years time it has finished? This single order reversing it's privatization passed by CJP back then not only cost Pakistan USD 500 Mn of FDI for a crippled asset (no buyer now), but also Destroyed the country's whole Privatization process, creating a Hugh FDI gap as well as destroying foreign investor confidence in Pakistan. I would like the so called independent media, so show how much FDI has come into Pakistan after the Pak Steel debacle? Before this the average FDI flowing in Pakistan on a yearly basis was near USD 3-4 billion. Now after 3 years, the loss of FDI/year (conservative estimates) is around USD 6-7 billion, almost the same amount of loans taken by Pakistan from IMF. One judgment cost Pakistan & Pakistanis an extremely crippling inflation, increase in utilities cost, raising fuel prices, increase in taxes on already taxed public & many other difficulties in an ordinary Pakistani's daily life. Q. Who is responsible for all this vicious cycle? Q. Is this not treason? Q. Are Judges higher than the law? Q. When there is call for the heads of Musharraf, Army General's & corrupt politicians, why this independent media not asking questions from this Independent Judiciary? Q. Why Kamran Khan (Geo) is not asking the above question on his show? All Hail Dependent Judiciary!!!!!!!!!!! All Hail Dependent Media!!!!!!!!!!!!!!! All Hail Highly & Biased Lawyers Restoration Movement!!!!!!!!!!!!!!!!!

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