Pakistan Steel Mills Corporation''s dealers have gone on strike and have decided not to do business with the corporation unless FIA investigations stopped completely.
Pakistan Iron Steel Merchant''s Association, a representative body of steel dealers, has taken serious notice of the harassment caused to Karachi based Pakistan Steel dealers during last ten days on account of investigations by FIA Crime Circle to ascertain the level of corruption committed by former chairman of Pakistan Steel, Mueen Aftab Sheikh.
"We have unanimously decided not to procure steel products from Pakistan Steel from Saturday till the acceptance of our demands," the dealers said. They said information has passed to over 400 Karachi based steel dealers and on Saturday only two delivery orders were filed. However, from Monday, Karachi base dealers would not place any order.
"We are trying to contact with other cities like Lahore and Peshawar base PSMC dealers for participation in strike and expect that they will accept our request," they added. They said that FIA is carryiing out investigation in Karachi-based over 150 dealers without any written notice, and is forcing them to provide corruption evidence against the sacked chairman for award of new dealership.
For the new dealership, all dealers have paid the entire security deposit through pay order and no financial loss has been caused to the government-owned steel producer, dealers said. Similarly, the dealers had made 100 percent payment and obtained delivery orders against their allocations as per the price list of the steel mill. Again no financial loss has been caused to the corporation. They said that during the course of recording of statement by FIA, queries are being raised in respect of out of turn allocation of material.
"We would like to clarify that out of turn allocation is being done since 1987 by Pakistan Steel to boost the sale of it products and improve its liquidity. Therefore, it''s not a crime," dealers said. The Steel Mill record will confirm that trophies were given to those dealers who made heavy purchases in a particular year, they added.
"In this regard we would like to place on record that an FIR No 1/97 was registered by FIA on 11-01-1997 against Chairman Sajjad Hussain, Director Marketing Colonel Afzal and other officials of Pakistan Steel and a few dealers, where also out of turn allocations were made." However, Pakistan Steel in several letters had acknowledged that since the sale to the dealers have been made as per the listed price, Pakistan Steel had suffered no financial loss, and requested FIR 1/97 may be withdrawn, they said.
"We think that an attempt is being made to change the focus from the main issue where Pakistan Steel has suffered colossal losses to the tune of billions of rupees and shifted to an area where no financial losses have been caused to Pakistan Steel," they said.
The Karachi base dealers have gone on strike and have pledged that they will not do business with Pakistan Steel until unless these investigations are stopped completely, they said. "We strongly appeal to the President of Islamic Republic of Pakistan, Prime Minister, Islamic Republic of Pakistan, Interior Minister and Federal Minister for Industries to intervene immediately and put and end to this uncalled for investigation and stop harassment of the dealers," they added. Dealers said business closure with PSMC will again adversely affect the friendly business environment and the sale of Pakistan Steel which should not be ignored.