Acting Chief Financial Officer (CFO) PSM, Arif Sheikh, informed the committee that note for withdrawal of Rs 3.9 billion from Provident Fund Trust (PFT) was initiated by Abdul Aziz Memon, then Deputy General Manager of cash section (retired) whereas Muhammad Mansoor (late) was the General Manager (Accounts & Finance) at that time. The case was justified and approved by the then Director Finance Sharif Awan and then Chairman Aftab Moin Sheikh except one approval on October 15, 2008 given by Acting Chairman Sameen Asghar. The members of Board of Trustees were Muhammad Mansoor, Akbar Nabi and Muneer Husssain Chattha.
The note for withdrawal of Rs 3.61 billion from the gratuity fund was initiated by Muhammad Mansoor, General Manager (Cost & Accounts). The case was justified and approved by the then Director Finance Sharif Awan and then Chairman Aftab Moin Sheikh except one approval on October 15, 2008 given by Acting Chairman Sameen Asghar. The Trustees of the Fund were Saleem Ahmed, Saud Ahmad Khan, SM Husnain Akhtar and Mansoor Hussain.
The members of the committee, including Chairman Senator Hayadatullah, Senator Mian Ateeq Sheikh and Senator Kalsoom Parveeen, were of the view that it is a crime to withdraw funds of employees and urged Ministry of Industries and Production to send a reference to NAB against all those involved in this illegal action.
"It's a daytime robbery and should be sent straightway to NAB," Mian Ateeq added. The additional secretary in-charge assured the committee that he would talk to Deputy Chairman NAB Imtiaz Tajwar soon after the meeting to send a reference against responsible as this case does not come under the purview of Federal Investigation Agency (FIA).
He further stated that his top most priority is to pay Rs 7.5 billion of provident and gratuity funds, adding that he is trying to clear this amount through sale of PSM land meant for industrial purposes amounting to Rs 10 billion.
Talking about the future of PSM, Mian Asad Haya-ud-Din said that privatization of PSM will be his least priority. He informed the committee that he has drafted a summary about PSM for the ECC on which Privatization Commission is being consulted. He said the top most priority in the summary is immediate financial injection to revive it whereas the second option is staggering it.
Kalsoom Parveeen said the committee has always opposed privatization of the mills. On this, the additional secretary in-charge seconded her saying: "Madam I will say one word, we are with you." "We have already taken up this matter with PC for return of provident and gratuity funds to the employees. We are also convincing the Finance Ministry on this," he added.
Utility Stores Corporation (USC) On the issue of Utility Stores Corporation (USC), the additional secretary in-charge said that condition of USC in worse than the famous Titanic, a British passenger liner that sank in the North Atlantic Ocean in the early morning hours of April 15, 1912 on its maiden voyage.
Senator Ateeq Sheikh said those vendors who were used to sell their products to USC, which is like a sinking ship as an organization, are now planning to purchase their own plane. He was citing the example of an individual whose father was used to manufacture ghee in a big pan is now a billionaire by destroying the USC.
On a question raised by Kalsoom Parveeen, the additional secretary in-charge informed the committee that the ministry has sent a summary to the Prime Minister for appointment of new Board for the USC. Managing Director USC, Mathar Niaz Rana informed the committee that a number of stores are in losses and the USC is planning to offer those stores to franchises. He informed the committee that six corruption cases of Rs 46.153 million are with NAB whereas 126 cases involving Rs 724.715 million are with FIA. He also presented the names of those former/ incumbent officials whose cases are with the NAB and FIA.
He said that different organizations and governments owe Rs 36 billion to USC, adding that efforts are afoot to recover this amount. He sought tax incentives for the USC which are available to power companies.
He shared a detailed performance of USC with the committee, saying that its sale is on decline due to non-availability of subsidy. He said USC will never be successful without subsidy whether it was used or misused. The USC has to pay Rs 5.6 billion to vendors. Damaged and expired stock is of Rs 273.27 million whereas monthly salary bill is Rs 400 million. The equity has decreased from Rs 2.673 billion to negative Rs 1.808 billion. The working capital has come down from Rs 6.401 billion to Rs 130 million.
When the committee members criticized the USC management for poor performance and cited example of Canteen Stores Department (CSD), the additional secretary in-charge said if the committee wants CSD like performance from USC then it should also give similar powers, adding that there is no union in CSD. He asked for an in-camera briefing wherein he would share "startling" details.
The managing director said that USC is considering shutting down unviable stores, rationalization of expenses, human resource, un-required contracts and computerization. He said the government should release subsidy claims of the USC, exempt it from PPRA Rules and long supplies contracts with manufacturers and mills, exemption from advance income tax and partnership with the vendors to stabilize USC.