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Non-transparency at PSM caused losses: Senate body

Staff Report

ISLAMABAD: A sub-committee of the Senate Standing Committee on Industries and Production on Monday observed that financial matters, procurement and marketing processes in the Pakistan Steel Mills were not conducted transparently, resulting in losses of billions of rupees for the PSM.

The meeting, chaired by Senator Haroon Akhtar Khan, noted that the PSM’s board of directors had failed to provide the right leadership and guidance to the organisation. “The leadership role needed in difficult circumstances to keep the ship sailing was lacking.” The sub-committee had been constituted to look into the PSM’s matters and identify the causes of losses it had suffered.

“The PSM management was taking undue advantage of the company’s superior market position and its status as a public sector entity,” the committee said, adding the organisation was not only overstaffed, but general productivity of its workers was also below average. “We have observed that the PSM management purchased raw materials at a much higher price,” Haroon Khan said, adding the company’s market intelligence unit had not observed market trends and failed to point out pilferages, market manipulations and other malpractices.

The committee also expressed concerns that during the financial crisis, the management had submitted to its workers union’s (CBA) demand, causing huge financial complications.

“The logical result of this state of affairs was that from July to November 2008, the PSM’s sales decreased from Rs 5 billion to Rs 1 billion,” it observed.

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