PSM gets new CEO, BoD as Phulpoto removed -Pakistan Press Foundation (PPF)

Paksitan Press Foundtion

PSM gets new CEO, BoD as Phulpoto removed

ISLAMABAD: It was around midday on Monday when in his exclusive interview with Geo News programme “Kehnay May Kya Harj Hai” (to be aired tonight at 11.05pm) a determined prime minister said he would definitely expedite the process of removal of Pakistan Steel Mills managing-director Rasool Bakhsh Phulpoto, who already had a criminal FIR lodged against him on charges of serious financial irregularities.

Proving true to his word, the prime minister removed Phulpoto within hours of his professed intent to do so. Hopefully, the prime minister will show similar determination in taking action against other corrupt elements present within the bureaucracy and the power corridors.

Israr Khan adds: Against the backdrop ofmismanagement, corruption and huge financial losses in the Pakistan Steel Mills (PSM), the government on Monday reconstituted entire board of directors of the PSM and replaced Chairman MM Usmani with the new chief executive officer (CEO) Malik Asrar Hussain who was earlier a grade-21 officer on special duty (OSD).

Meanwhile, a notification issued by the establishment division here says that the CEO of the mill Asrar Hussain, who was a BS-21 officer of the district management group posted under the Sindh government would also exercise the powers of managing-director (MD), Pakistan Steel Mills Corporation, with immediate effect and until further orders.

Previously, Rasool Bakhsh Phulpoto was working as managing-director of the PSM, who has now been sacked and FIA has already registered cases against him, former chairman Mueen Aftab Sheikh, former director (commercial) Sameen Asghar and three directors, as well as chief executive officer of the Abbas Steel Group, on Dec 23, 2009 for allegedly misusing their powers with criminal intentions causing a loss of Rs22 billion to the PSM.

Well-placed official in the ministry of industries and production told The News that the ministry had sent a summary to Prime Minister Yousuf Raza Gilani, seeking his consent on the reconstruction of PSM’s board of directors, which the premier approved yesterday.

It is interesting to note that former finance minister Shaukat Tarin has also time and again proposed to the government for reconstitution of the PSM board for making the entity more efficient.

The mill is producing only 45 per cent of total capacity. According to the official, the Pakistan Steel Mills has accumulated about Rs26 billion losses during last financial year 2008-09.

It was the financial crisis that compelled the government in January 2010 to provide a bailout package of Rs10 billion to the Pakistan Steel Mills (PSM) and pull it out of the crisis. The economic coordination committee approved the rescue package under which the PSM will be provided Rs10 billion on the guarantee of government from the National Bank of Pakistan (NBP) and a consortium of banks. The mill will get Rs8 billion from the NBP and the consortium of banks will provide remaining Rs2 billion.

The members of the new PSM board would consist of 12 directors, including six members from the private sector and remaining from public sector.

Malak Asrar Husain would be the CEO of the mill and other directors would include additional secretary of the ministry of industries and production; CEO engineering development board (EDB); member (customs) FBR; additional secretary (finance- Exp-II) Finance Division; chairman State Engineering Corporation, Islamabad; Fazalillah Qureshi, ex-Secretary, Planning and Development Division, Senator Gul Muhammad Lot, Chief Executive Mehran Spices Industries Ltd Karachi, Sohail P Ahmad CEO, Thal Engineering Ltd, Karachi, Haji Muhammad Javed, Employee’s Federation of Pakistan, Karachi, Engr Darro Khan, Vice President CE Darro Khan and Brothers Trading Co, Balochistan and other member Mian Misbahur Rehman, ex-president Lahore Chamber of Commerce and industry (LCCI) would be also working as director of PSM board.
Source: The News
Date:3/2/2010