ISLAMABAD: Maj General (retd) Muhammad Javed, CEO of Pakistan Steel Mills, will defend before the Public Accounts Committee on Wednesday Rs9.672 billion losses, which the mills incurred during his and Moeen Aftab’s tenure as chairmen PSM for selling its products to the cronies of an important personality below market price.
PAC will review action on its earlier directives in which it had ordered the PSM to fix the responsibility on those responsible for this huge loss. Interestingly, these losses were incurred during the tenures of Maj General (retd) Muhammad Javed and Moeen Aftab as chairmen PSM. One of them is languishing in jail while the other was recently appointed as CEO PSM.
Maj General (retd) Muhammad Javed when contacted said that the Federal Investigation Agency was investigating the case. When told that Moeen Aftab was in jail over the same allegation, the CEO PSM admitted that one of the many charges against Mooen Aftab was selling products below market price. When reminded that it happened during his tenure General (retd) Muhammad Javed replied that it was not a law that the prices should be fixed as per international price.
“There are many other factors as well and we have submitted a detailed reply and have also told the FIA and the FIA was investigating the case”. According to a letter of PAC dated April 29, 2010 “Para 106: Loss of revenue due to fixation of sale below market price; Rs9.672 billion; The chairman directed that chairman Pakistan Steel may fix responsibility for lower fixation of sale price of steel products and take disciplinary action against the concerned persons.
Report to be submitted in one month’s time. The ministry of industries and production may hold a meeting with the relevant departments of the Pakistan Steel mills and the Audit authorities to settle the para.
The committee may be informed about the constitution of the price review committee and suggest ways to make this committee independent and transparent. The committee directed that the price review committee should be revamped. Report may be submitted within fifteen days.
“Para 107: Loss due to non-recovery of extra freight Rs221.214 million: The PAC directed that the chairman may fix responsibility on the officer responsible for not invoking penal clause of the contract signed with Pakistan National Shipping Corporation and making over payments. Report in this matter may be submitted to PAC in 15 days. It was also directed that procedural flaws in future contracts might be removed.”
Well-placed sources told The News that no action so far has been taken over this directive of the PAC. According to FIA report submitted in the Supreme Court on 1-2-2010, it was revealed that the auditors coupled the period of two different chairmen - Maj Gen (Retd) Muhammad Javed (from January to May 2008 and accused Mueen Aftab (FIR No. 39/2009) from June to September 2008. Sources say that the chairman who remained in office for four months is in jail while the other, who worked as PSM chairman for five months, has again been appointed as CEO PSM.
It merits mentioning here that presently the PSM losses from July 2008 to June 2012 are more than Rs74 billion and payable liabilities are more than Rs75 billion, totalling Rs149 billion in four years.
PAC will review action on its earlier directives in which it had ordered the PSM to fix the responsibility on those responsible for this huge loss. Interestingly, these losses were incurred during the tenures of Maj General (retd) Muhammad Javed and Moeen Aftab as chairmen PSM. One of them is languishing in jail while the other was recently appointed as CEO PSM.
Maj General (retd) Muhammad Javed when contacted said that the Federal Investigation Agency was investigating the case. When told that Moeen Aftab was in jail over the same allegation, the CEO PSM admitted that one of the many charges against Mooen Aftab was selling products below market price. When reminded that it happened during his tenure General (retd) Muhammad Javed replied that it was not a law that the prices should be fixed as per international price.
“There are many other factors as well and we have submitted a detailed reply and have also told the FIA and the FIA was investigating the case”. According to a letter of PAC dated April 29, 2010 “Para 106: Loss of revenue due to fixation of sale below market price; Rs9.672 billion; The chairman directed that chairman Pakistan Steel may fix responsibility for lower fixation of sale price of steel products and take disciplinary action against the concerned persons.
Report to be submitted in one month’s time. The ministry of industries and production may hold a meeting with the relevant departments of the Pakistan Steel mills and the Audit authorities to settle the para.
The committee may be informed about the constitution of the price review committee and suggest ways to make this committee independent and transparent. The committee directed that the price review committee should be revamped. Report may be submitted within fifteen days.
“Para 107: Loss due to non-recovery of extra freight Rs221.214 million: The PAC directed that the chairman may fix responsibility on the officer responsible for not invoking penal clause of the contract signed with Pakistan National Shipping Corporation and making over payments. Report in this matter may be submitted to PAC in 15 days. It was also directed that procedural flaws in future contracts might be removed.”
Well-placed sources told The News that no action so far has been taken over this directive of the PAC. According to FIA report submitted in the Supreme Court on 1-2-2010, it was revealed that the auditors coupled the period of two different chairmen - Maj Gen (Retd) Muhammad Javed (from January to May 2008 and accused Mueen Aftab (FIR No. 39/2009) from June to September 2008. Sources say that the chairman who remained in office for four months is in jail while the other, who worked as PSM chairman for five months, has again been appointed as CEO PSM.
It merits mentioning here that presently the PSM losses from July 2008 to June 2012 are more than Rs74 billion and payable liabilities are more than Rs75 billion, totalling Rs149 billion in four years.
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