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  • Sep 15th, 2006
  • Comments Off on Kuwaiti firm not endorsing PSMC sell-off process
The Privatisation Commission is facing difficulty in getting Al-Kuwait Investment Company's endorsement of the Pakistan Steel Mills Corporation (PSMC) privatisation, it was learnt here on Thursday.

Sources said the Al-Kuwait Investment Company-the runner-up bidder for the PSMC's controversial sell-off-has turned down the Privatisation Commission's request to endorse in writing the mills privatisation process.

Sources said the Privatisation Commission had approached the Kuwait investment group to get its endorsement in writing to establish that the transaction was carried out through an open and transparent process. The company informed the Privatisation Commission it could consider the request for the PSMC bidding process endorsement if provided reasons of the certification and details of the Council of Common Interests (CCI) decision for the PSMC future.

Privatisation Commission officials were considering to again approach Al-Kuwait Investment Company with requisite information to get the endorsement of the PSMC bidding. Sources in the commission were tight-lipped about the necessity of approaching the Kuwaiti group to get its certificate for establishing the PSMC's sell-off, which was later struck down by the Supreme Court of Pakistan.

Specially, in a situation when the Privatisation Commission has already refunded first instalment of the payment to Al Tuwairqi group-led consortium. Sources said the Privatisation Commission had refunded the first instalment and earnest money to the winning consortium last month.

Its only purpose could be to get Al Kuwait Investment Company's certification in support of its review petition filed before the Supreme Court of Pakistan. It may be noted the Privatisation Commission has submitted a review petition before the Supreme Court of Pakistan in PSMC sell-off case. The hearing into the case is expected sometimes next month.

Arif Habib-one of the parties of the winning side led by Al Tuwairqi group of Saudi Arabia-has also filed petition before the Supreme Court of Pakistan, seeking review of the decision.

Copyright Business Recorder, 2006


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