Expressing dissatisfaction over the report submitted by Federal Investigation Agency (FIA) on Rs 22 billion corruption in Pakistan Steel Mills (PSM), the Supreme Court on Wednesday directed the agency to complete investigation within fortnight against all accused including entity's former chairman Moeen Aftab Sheikh and resubmit its report.
The bench comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Mian Shakirullah Jan and Justice Tariq Parvez was hearing the suo motu case on Rs 22 billion alleged corruption in PSM. Submitting the investigation report, FIA Director General Azam Khan told the court that billions of rupees' corruption was committed in various departments of PSM from May 26, 2008 to August 19, 2009.
He said the report was prepared in light of preliminary investigation conducted by FIA Karachi against alleged corruption in PSM. According to the report, he said former PSM chairman Moeen Aftab and his accomplices committed billions of rupees corruption by taking kickbacks during the import of raw material from abroad on high rates, causing billion of rupees losses to the entity.
He said prices of finished goods in PSM were reduced to give benefit to cronies, which led to Rs 3.72 billions loss to the Mills. According to the report, main reason of the loss was the global economic recession. The Chief Justice said it was not a loss instead it was a mega corruption scam, thus privatisation of the entity was set aside. He said it was a huge corruption, therefore, FIA should have been there on permanent basis, besides registering cases and arresting the accused.
The FIA Director General then told the court that powers of FIA had been reduced and now government's prior permission was mandatory to arrest any government official. The Chief Justice then said it was a matter of plundering money of national exchequer, thus there was no need of government's prior permission to arrest a plunderer.
He said when FIA has registered cases against the accused involved in PSM corruption, it should also proceed further in accordance with the law. The FIA Director General also told the court that coal was imported from Australia without any tender, which caused Rs 5.88 billion loss to the Mills.
He said in the import of coal Captain (Retd) Arshad Abrho, who is a commission agent, played the main role. He said the contracts of canteens were given to blue-eyed people, which caused Rs 80 million losses to the entity. Abdul Mujeeb Pirzada, counsel for Moeen Aftab, contended that due to the international economic crisis, the prices of raw material were reduced, which led to cut in steel products' prices causing loss to the Mills.
But disagreeing with the Pirzada's contention, Chief Justice said when the purchase was in progress, the demand of the products was in place, thus how the products were sold at low prices. He said after completion of FIA investigation, the law would automatically take its' course.
The FIA chief told the court that coal was purchased on high rates through Abbas Steel Mills Group. He said a daughter of Riaz Lal Jee was director in the Abbas Group. He said Moeen Aftab had also worked with Abbas Group. The court was also told that Riaz Lal Jee was the front man in the PSM corruption, who is presently out of the country. Chief Justice observed as to why the name of Riaz Lal Jee was not placed on Exit Control List.
The court directed FIA to take legal action against former PSM chairman Moeen Aftab, Managing Director Rasool Bux Phalphoto, Director Commercial Sameen Asghar and all other businessmen who were involved in the mega corruption and submit report within two weeks.