ISLAMABAD: Chief Justice Iftikhar Muhammad Chaudhry on Wednesday observed that the Supreme Court was trying to curb corruption in different sectors of the government, while in the Steel Mills case, some improvement had been seen but still more efforts were needed to reduce losses.
A two-member bench of the apex court, comprising Chief Justice Iftikhar Muhammad Chaudhry and Justice Ghulam Rabbani, was hearing a suo motu case on the rapidly increasing losses of the Pakistan Steel Mills (PSM).
During the hearing, it was observed that after the court’s initiatives, losses had been reduced and FIRs registered against some people, otherwise the status quo remained. The chief justice observed that even after so many efforts, the PSM was still making a big loss.
Earlier, Justice (retd) Fakharuddin G Ibrahim, who was assisting the court in the matter, submitted that 10 FIRs had been registered while one person had got bail from the court. The chief justice observed that bail was the right of the person.
Fakharuddin G Ibrahim submitted that Rs25 million had been recovered; however, the PSM was still under a loss of Rs2 billion.
The industries secretary appeared before the court and submitted that they had issued notices to 178 dealers for getting illegal benefits through the PSM. He defined different categories of dealers and stated that in total, 1,000 dealers had been issued notices and asked for recovery. He stated that a bunch of suppliers had also been blacklisted and efforts for the recovery were under way.
Justice Iftikhar inquired that after taking such measures, why the PSM was still in a loss. He observed that the secretary was responsible for those losses as his report was showing around Rs500 million loss while the real losses were about Rs2 billion.
The industries secretary submitted that the losses had been incurred because of high prices of raw material, inventory and shipping. He stated that in 2008-9, the prices of the raw material went to the highest point, while there was also over-recruitment as the PSM had 17,000 employees when hardly 5,000 to 6,000 workers were needed there.
The chief justice asked him whether it was the fault of management. The secretary submitted that the management was also at fault, as they did not negotiate while getting raw material. He further stated that a new problem was of liquidation because the PSM was working less than of its capacity. He submitted that they had informed the prime minister and requested the cabinet committee for restructuring of the PSM management.
He submitted that the losses in 2008-9 were Rs26.5 billion, in 2009-10 Rs11 billion, and during the first six months of this fiscal Rs5.7 billion. He also submitted a report on the losses in the past and recoveries.
FIA Director Moazam Jah also appeared before the court and submitted a report on the FIRs initiated by an FIA department and recoveries made from some of the defaulters. He assured the court that each and every penny plundered during the past will be recovered.
Fakharuddin G Ibrahim sought three months’ time for the audit of the PSM. The chief justice observed that ample time had already been given and ordered that the audit report be produced before the court within one month. He ordered that strict measures be taken for the recovery and FIA be accorded full cooperation in its investigation. (The News)
A two-member bench of the apex court, comprising Chief Justice Iftikhar Muhammad Chaudhry and Justice Ghulam Rabbani, was hearing a suo motu case on the rapidly increasing losses of the Pakistan Steel Mills (PSM).
During the hearing, it was observed that after the court’s initiatives, losses had been reduced and FIRs registered against some people, otherwise the status quo remained. The chief justice observed that even after so many efforts, the PSM was still making a big loss.
Earlier, Justice (retd) Fakharuddin G Ibrahim, who was assisting the court in the matter, submitted that 10 FIRs had been registered while one person had got bail from the court. The chief justice observed that bail was the right of the person.
Fakharuddin G Ibrahim submitted that Rs25 million had been recovered; however, the PSM was still under a loss of Rs2 billion.
The industries secretary appeared before the court and submitted that they had issued notices to 178 dealers for getting illegal benefits through the PSM. He defined different categories of dealers and stated that in total, 1,000 dealers had been issued notices and asked for recovery. He stated that a bunch of suppliers had also been blacklisted and efforts for the recovery were under way.
Justice Iftikhar inquired that after taking such measures, why the PSM was still in a loss. He observed that the secretary was responsible for those losses as his report was showing around Rs500 million loss while the real losses were about Rs2 billion.
The industries secretary submitted that the losses had been incurred because of high prices of raw material, inventory and shipping. He stated that in 2008-9, the prices of the raw material went to the highest point, while there was also over-recruitment as the PSM had 17,000 employees when hardly 5,000 to 6,000 workers were needed there.
The chief justice asked him whether it was the fault of management. The secretary submitted that the management was also at fault, as they did not negotiate while getting raw material. He further stated that a new problem was of liquidation because the PSM was working less than of its capacity. He submitted that they had informed the prime minister and requested the cabinet committee for restructuring of the PSM management.
He submitted that the losses in 2008-9 were Rs26.5 billion, in 2009-10 Rs11 billion, and during the first six months of this fiscal Rs5.7 billion. He also submitted a report on the losses in the past and recoveries.
FIA Director Moazam Jah also appeared before the court and submitted a report on the FIRs initiated by an FIA department and recoveries made from some of the defaulters. He assured the court that each and every penny plundered during the past will be recovered.
Fakharuddin G Ibrahim sought three months’ time for the audit of the PSM. The chief justice observed that ample time had already been given and ordered that the audit report be produced before the court within one month. He ordered that strict measures be taken for the recovery and FIA be accorded full cooperation in its investigation. (The News)
