The Public Accounts Committee (PAC) has recommended the government to remove Pakistan Steel Mills Corporation (PSMC) from active list of privatisation with its liability reaching to whooping Rs 170 billion in 2016. Syed Khursheed Shah chaired the meeting of the PAC Tuesday which examined the audit report of the Ministry of Industries and Production for financial year 2013-14.
Secretary Ministry of Industries and Productions, Khizar Hayat Gondal informed the committee that total liability of PSM swelled to Rs 170 billion including loans obtained from National Bank of Pakistan (NBP) and Rs 40 billion outstanding gas bills. Since June 2015, PSM has been non-operational and there was no plan for its revival as it has been put on the privatization list, the committee was informed.
Khursheed Shah said the Sindh government had shown its willingness to run the PSM unlike the other local investors. "No doubt, domestic investors are willing to buy the mills but their interest is in Rs 200 billion worth of land rather to make it operative," he observed. He further said the privatization of PSM was a political issue and the government should inject a lump sum amount to make it operational. He said that both Pakistan Muslim League (N) and Pakistan People''s Party (PPP) governments paid salaries to the employees but failed to give a huge bailout package for its revival, adding the PSM was the country''s asset, hence should not be sold.
Committee member Mahmood Khan Achakzai seconding the chairman''s arguments said PSM should be rescued from land mafia, moving around like vultures. Another Member Sardar Ashiq Hussain Gopang said it was very disturbing that the Ministry did not have any plan or summary for the revival of national strategic asset. He said, "Every department always prepares its own plan of revival but it is surprising to know that there is no plan for the revival of the PSM."
Earlier, the secretary said that the accumulated losses of the mill were Rs 65 billion and since 2008 it has been incurring huge losses. The parliamentary forum also grilled the officials of the ministry over the purchase of irrelevant machines which incurred Rs 72.3 million losses to the exchequer. During the audit of ''Ceramics Development and Training Complex (CDTC) Gujranwala for the year 2012-13, it was revealed that three machines valuing Rs 72.3 million were imported from Italy in 2010-11. These machines were lying idle since installation. In 2014, the management stated that inquiry regarding purchase of these machines had been conducted and the case was referred to the National Accountability Bureau (NAB). The inquiry fixed three persons responsible for purchase of the machines by dodging the Board of CDTC.
However, Sardar Ashiq Gopang was not satisfied with the explanation of the NAB official on the progress of the case and directed him to bring whole inquiry proceedings and challan presented in the accountability court and other record. He observed that the NAB took 90 days remand in cases involving politicians or bureaucrats but it was not taking serious notice in such kind of cases. Deputy Auditor General of Pakistan remarked that the audit reports of the Ministry of Industries and Production were reflecting that the internal mechanism of check and balance in the ministry was not in place.
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