ISLAMABAD: Pakistan Steel Mills (PSM) is reportedly accusing Secretary Industries and Production (MoI&P) Khizer Hayat Gondal of putting the management in a very awkward position by supporting three months’ salaries for employees instead of two months as proposed by the Privatisation Commission, well informed sources told Business Recorder.

Federal Government recently assigned the charge of Chief Executive Officer (CEO) of PSM to Chairman Export Processing Zone (EPZA) Mumtaz Ali Shah in place of Khizer Hayat Gondal.

PSM is financially bleeding at the rate of Rs 3 million per hour and its losses and liabilities have mounted to more than Rs 400 billion.

Finance Minister, Senator Ishaq Dar recently approved three months’ salaries for PSM employees by setting aside the summary prepared by the Privatisation Division because the payment was to be made from funds from Port Qasim Authority (PQA) against land.

The sources said, PSM management paid salaries of two months to the employees instead of three months because the entity has to pay a specific amount to retired employees, which was not available with the management. Sindh High Court has issue contempt notice to Secretary Industries and Production, Secretary Finance, Chairman Privatisation Muhammad Zubair s/o of “not known” and CFO PSM Arif Sheikh.

According to sources, PSM has to pay Rs 180 million to the employees on the instructions of SHC; PSM management has Rs 80 million only and is deficient by Rs 100 million, and if the management pays Rs 80 million from available funds, then it would not be able to pay utility bills including electricity bill.

“We are in a very pathetic situation,” said an official on condition of anonymity.

The mill is in a dysfunctional mode for more than one year due to suspension of gas supply by the Sui Southern Gas Limited (SSGCL) due to non -payment of an outstanding amount of Rs 38 billion.

Privatisation Commission has reportedly expressed anger at Secretary Industries and Production for not respecting his instructions on utilization of proceeds in violation of directives of Chairman PC, Muhammad Zubair.

Chairman PC had refrained PSM from utilization of the proceeds. However “PSM management has been utilizing the proceeds and till November 10, 2016 had utilized Rs 340 million without the consent of the Privatisation Commission,” the sources continued.

The recent decision of the ECC taken by the Minister for Finance, Privatisation and Statistics Division, Ishaq Dar to pay three months’ salaries to PSM employees instead of two months’ has set aside the concerns of PC with respect to utilization of proceeds from PQA.— MUSHTAQ GHUMMAN