Financial embezzlement: senior PSM officials to be quizzed by PAC

The Public Accounts Committee (PAC) is to quiz senior Pakistan Steel Mills (PSM) officials, including its CEO, over financial embezzlement in Pakistan Steel Mills (PSM) and the implementation status of PAC directives in 2010. PSM's production under the survival plan is 20 per cent and iron ore stocks are for 14 days while coal stocks would last 44 days. There is no L/C on iron ore and coal due to a financial crisis. Employees' salaries for June and July are payable.
The PAC in its meeting held on 28th April, 2010, while discussing the various audit paras of the PSM gave the following directions:
-- Loss of revenue due to fixation of sale price below market price - Rs 9.672 billion:
The Chairman directed that Chairman Pakistan Steel may fix responsibility for lower fixation of sale price of steel products and take disciplinary action against the concerned persons. A report to be submitted in one month's time. The Ministry of Industries and Production may hold a meeting with the relevant Departments of the Pakistan Steel Mills and Audit Authorities to settle the para. The committee may be informed about the constitution of the Price Review Committee and suggest ways to make this Committee independent and transparent. The Committee directed that the Price Review Committee should be revamped. A report may be submitted within fifteen days.
-- Loss due to non-recovery of extra freight - Rs 22.214 million:
The PAC directed that the Chairman may fix responsibility on the officer responsible for not invoking penal clause of the contract signed with Pakistan National Shipping Corporation and making over payments. A report in this matter may be submitted to PAC in fifteen days. It was also directed that procedural flaws in future contracts may be removed.
-- Irregular award of sale contract by extending undo favour to an applicant dealership - Rs 194.134 million: The Chairman Pakistan Steel was directed to conduct inquiry and fix responsibility in this case. Report may be submitted within fifteen days.
-- Loss due to purchase of material by splitting up purchases - Rs 158.672 million: The Chairman Pakistan Steel was directed to conduct inquiry and fix responsibility in this case. A report may be submitted within fifteen days.
-- Loss due to non-lifting of material by the buyers within stipulated time - Rs 1.842 million: The Chairman Pakistan Steel was directed to conduct inquiry and fix responsibility in this case. The rules regarding Standard Terms and Conditions of Dealership on Contract may be revisited to remove lacunae. It was also directed that the Pakistan Steel Mills Corporation may frame Commercial Procurement Rules after input from stake holders. A report may be submitted within fifteen days.
-- Loss due to inordinate delay in placement of purchase orders Rs 1.643 million: The committee directed the Chairman to fix responsibility for not responding to the DAC in time and to make recovery of the amount and report to the PAC in one month's time.