Shujah set to be appointed as PSM CEO

Ministry of Industries and Production (MoI&P) is all set to seek Federal Cabinet's nod to appoint Brig. Shujah Hussain (retd) as Chief Executive Officer (CEO) of Pakistan Steel Mills (PSM), sources close to the Chairman PSM Board told Business Recorder.
Pakistan Steel Mills, a state-owned enterprise is dysfunctional since June 2015. The federal government has decided to revive it through privatisation. Financial Advisor is presently evaluating the best possible option mode for the revival of PSM on the basis of various parameters finalized in consultation with Privatisation Commission (PC). The Mills have not had a permanent senior executive officer since April 6, 2016.
Accordingly, to fill the vacant post of CEO PSM, advertisement was published in the national newspapers seeking applications from potential candidates. Till the cut-off date, i.e., November 2019, 36 candidates applied for the post of CEO-PSM.
As per the Article 12(c) of the Public Sector Companies (Corporate Governance) Rules, 2013, the Board Human Resources Committee (BHRC) in its meeting held on December, 2019, short-listed five candidates for interviews. Subsequently, interviews were held on December 18, 2019 by the BHRC of the Board. Out of five candidates only three candidates appeared before the committee.
On January 16, 2020, PSM Board concurred with the recommendations of the BHRC and recommended the following three candidates in order of the merit for appointment of one of them as CEO-PSM for a period of one year: (i) Brig Shujah Hussain (retd); (ii) Faroq Usman Siddiqui; and (iii) Tariq Ejaz Choudhary.
As per Article 186(4) of the Companies Act 2017 read with Article 87 of Article of Association of Pakistan Steel Mills, the Federal Cabinet is competent to approve the appointment of CEO in line with the legal provisions.
The sources said a Korean company has shown an interest in acquiring PSM and negotiations with the company are in progress. The delegation is stated to have been brought by a close friend of Prime Minister who is the owner of a PSL cricket team.
PSM is facing challenges as management structure is non-existent and BoD is non functional. PSM's past performance is responsible for losses of approximately Rs 300 billion with payable debts of more than Rs 275 billion due in March 2020.
A couple of days ago, PSM management had directed all employees who are getting salaries and other privileges without having any work to do, to stay at home for 15 days starting from March 19, 2020. PSM is inflicting a financial loss of over 50 million per month to the national exchequer.
Meanwhile the Ministry of Industries and Production has sought information about regularized employees in line with the instructions of the Supreme Court of Pakistan.
The questions raised are as follows: (i) the justification of how different employees were promoted by PSM during the year 2014 etc, despite entity's weak financial position; (ii) details of a yearly breakup of employees hired by PSM management since 2008; (iii) list of core employees with their departments running PSM business; (iv) the status of PSM employees case which is presently being investigated by NAB. The retention of these employees and to make them permanent was not ordered by the government of the time; and (v) why is the government paying salaries despite the fact that the PSM is a private company? Is there concern over the concept of a corporation that is included in PSM's title?
Meanwhile, the Convener, Stakeholders Group, Mumrez Khan, while commenting on PSM's affairs claimed that there was no member on the PSM BoD equipped with the required technical/commercial qualification/experience or knowledge pertaining to metallurgical/iron/steel industry particularly integrated steel plant like PSM.