Federal government has reportedly decided not to extend Chief Executive Officer, Pakistan Steel Mills (PSM) Major General Zaheer Ahmad Khan's (retired) contract due to his poor performance in two years, well informed sources told Business Recorder. Ministry of Industries and Production (MoI&P) which is responsible for sending a summary to the Prime Minister through Establishment Division is also not supportive of the "outgoing" CEO because he did not deliver as per commitment with the government; and intends to give charge of the PSM affairs to a senior bureaucrat.
"The MoI&P has already informed the Establishment Division that the post of CEO PSM is becoming vacant from April 6, 2106 and is requesting that a senior officer be posted there," said an official on condition of anonymity. MOI&P reportedly does not want anyone from the Ministry or anyone proposed by the Ministry. Insiders claim that the recently appointed Chief Executive Officer (CEO) National Industrial Parks (NIPs) will be given the additional charge of CEO PSM. However, this was not confirmed officially.
According to insiders, Secretary Industries and Production, Arif Azim recently visited different sites of PSM. Recently, teams of National Accountability Bureau (NAB) and Auditor General of Pakistan (Commercial Audit Wing ) also reached PSM and scrutinised the record of employees and financial mismanagement respectively.
PSM losses and liabilities have mounted to Rs 375 billion as on February 29, 2016 compared with Rs 223 billion as on February 28, 2014. PSM's losses and liabilities were Rs 200 billion as on June 2013 which further increased by Rs 175 billion during the tenure of PML-N till February 29, 2016.
Secretary Industries and Production, Arif Azim, recently told Senate Standing Committee on Industries and Production that special audit of inventory sale is being conducted to verify if the bailout package was spent as per the mandate given to the management. Similarly, the Economic Co-ordination Committee (ECC) of the Cabinet has directed the PSM to conduct the audit of employees and submit a report to the federal government.
Federal Investigation Agency (FIA) is also investigating corruption of Rs 1,100,000 in sport purchase for Pakistan Steel Mills items and release of bills to contractor. PSM management has also convened a meeting of Board of Directors on April 1, 2016 just a couple of days before the departure of CEO. The management has also convened a meeting of HR committee on March 30, to give favours to favoured top officials.