PSM, PR financial losses: PAC body orders departmental inquiries

07 Apr, 2006

A sub-committee of the Public Accounts Committee (PAC) on Thursday expressed great resentment over billions of rupees loss incurred by Pakistan Steel Mills (PSM) and Pakistan Railways and directed the authorities to launch prompt departmental inquiries.
The meeting, which was held under the chairmanship of MNA Riaz Fatyana to look into the financial irregularities in both the institutions directed the authorities to ensure recovery of dues before handing over PSM affairs to the private sector and take punitive actions against wrongdoers.
Taking up the agenda, the special sub-committee expressed displeasure over shortage of finished goods worth millions of rupees in the stocks of Pakistan Steel Mills.
The members of the committee also expressed their resentment over the appointments of non-technical staff on political basis. A loss of nearly Rs 35 million due to non-payment of rent mostly by its lower cadre employees of the residential accommodation also irked the panel.
However, PSM Chairman Lieutenant General Abdul Qayyum (Retd) defended the corporation and said, "Everything is in control at the moment and it has now become a profitable institution."
Despite all the justifications an inquiry committee has been formed under the chairmanship of federal Industries Secretary Kamran Rasool to look into the matter and present its report to the sub-committee within three months.
Besides PSM, losses worth millions of rupees to the Pakistan Railways Carriage Factory also figured in the meeting.
It was noted that more than 15-year-old outdated items were still stored in the warehouse of the factory.
Strangely, the Carriage Factory managing director said that the factory manufactures 150 carriages per annum, and mistakes are quite possible during such a mass scale work.
The committee asked the railway authorities to fix the responsibility of losses to the national exchequer and stern action must be taken against the officials who looted millions of rupees.
The committee also directed the authorities to ensure all recoveries from different contractors and firms.

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