Presided over by a PTI stalwart, Asad Umar, committee members grilled both the MoI&P and PSM management including the incumbent CEO, Wasif Mehmood. Qaisar Ahmad Sheikh Sheikh, Mian Abdul Manan, Iftikhar ud Din and Muzamal Qureshi were the key members who gave a tough time to the PSM management and Chairman Privatisation Commission, Muhammad Zubair, brother of Chairman of the Standing Committee, Asad Umar.
The Committee also expressed serious concern over the absence of Minister for Industries and Production, Ghulam Murtaza Jatoi. Chairman of the committee said he has conveyed to the Minister through the Secretary Industries that the committee will be hostile if this practice continues.
On a question raised by PML, MNA, Qaisar Ahmad Sheikh, PSM management informed the committee that the Mill losses stood at Rs 103 billion whereas the value of its assets has been estimated at Rs 89 billion, out of which the price of land is Rs 62 billion whereas price of plant is Rs 27 billion.
Qaisar Sheikh criticised the management for preparing a "poor" presentation and expressed annoyance over the way the national asset was destroyed. He said PSM cannot be revived.
Asad Umar made some sarcastic comments on successive political governments, saying that the Mills remained in profit during an army rule. Chairman PC informed the committee that PSM restructuring plan will be ready in a month's time but he could not share its status with the committee members. "Presently, PC is preparing a restructuring plan and also looking for strategic private partners to run it," he added. He said more than 4000 officers of PSM are middle or metric pass. PPP government also inducted 3500 employees in the Mills and no one can touch them.
PPP Chairman Bilawal Bhutto Zardari and Senator Raza Rabbani are publicly defending these inductions and have stated that they would induct more people if they return to power. Mian Abdul Manan of PML(N) stated that PPP government would not return to power and added that if the present government improves the financials of the Mills any PPP future government would simply destroy it again. He maintained that the restructuring plan will be formulated in a way that the employees get salaries without interruptions. Acting CEO, PSM faced severe criticism from Secretary Industries who is also the Chairman of the PSM Board, when he stated that the Mills suffered Rs 26 billion loss in 2008 due to substantial reduction in prices of iron ore globally.
First Secretary Industries stated that PSM was kind to those who were responsible for the loss of Rs 26 billion. He stated that the management continued to procure iron ore at a rate three times greater than the international price and continued to run the mill at 84 per cent capacity when price of steel products had nose dived. Chairman of the committee stated that if the loss in 2008 was Rs 26 billion then the loss in subsequent years should have been much lower. Chairman PC stated that the PSM management focuses deliberately on 2008 so that post 2008 inefficiencies and mismanagement do not come under discussion.
In reply to a question, Wasif Mehmood informed the committee that a vessel carrying 11000 tons of iron ore has arrived and the Mill are starting operation. He said evaluation of offers made by three companies ie Dubai based company, Australian company M/s Cargill and a local company are underway for supply of coal and iron ore.
Mian Abdul Manan said the tenure of former Chairman Lieutenant General Abdul Qayyum (Retd) was very good for the Mills and proposed rehiring his services However, Chairman PC did not support the proposal. Additional Secretary MoI&P, Kizher Hayat Khan stated that the PSM issue is not so simple as the CEO is telling the committee, adding its long story of pain. He said former Chairman PSM is in jail for his wrong doings. He was of the view that acting CEO has not the capacity to run it. Wasif Mehmood informed the committee that the mill is operating at only three per cent capacity.
SUGAR SUBSIDY Commenting on sugar subsidy given by the incumbent government on export of sugar, Asad Umar stated there was massive fraud in sugar subsidy approved by the Economic Co-ordination Committee (ECC) of the Cabinet. He was of the view that the MoI&P is hiding facts on this issue as huge financial benefits have been given to sugar mill owners. He also directed that the heads of all the attached departments of should be appointed afresh according to the rules.