Editor Report
ISLAMABAD: The Public Accounts Committee (PAC) on Monday directed the Federal Investigation Agency (FIA) to launch an inquiry into Hadid Welfare Trust’s merger with the Pakistan Steel Mills (PSM), which was carried out without a feasibility study.The PAC also referred the case of secretary of industries to the Privileges Committee after finding contradictions in his statements regarding outstanding dues of the Karachi Country Club.The PAC meeting, chaired by Junaid Akbar Khan, reviewed audit reports highlighting serious irregularities in Pakistan Steel Mills (PSM), including land encroachments, non-recovery of dues, and the controversial merger of Hadid Welfare Trust.While examining an audit objection on non-recovery of Rs165.8 million from the Karachi Country Club, members said that in the previous meeting, officials had claimed that the decision had come in PSM’s favour and that both land possession and payments had been secured.PAC member Khawaja Shiraz Mahmood expressed annoyance over the contradictory briefing. “Earlier, we were told the land had been taken over and dues settled. Today, we are being informed that the land was neer in our possession. This is a completely new story,” he remarked.Another member, Bilal Ahmed Khan, pointed out that officials had even presented “plans” for the property, describing it as a valuable “jackpot” for the mills.The secretary of industries insisted that departmental action had already been initiated to fix responsibility. However, the committee observed that the minutes of the last meeting contradicted the secretary’s fresh account, proving that misleading information had been provided to PAC.Chairman Junaid Akbar directed retrieval of the previous meeting’s minutes and warned: “If it is confirmed that false statements were made, the matter must go to the Privileges Committee.” The PAC subsequently referred the case, saying the ministry’s contradictory stance reflected deliberate misrepresentation.On the issue of the Hadid Welfare Trust, the PAC directed the Federal Investigation Agency (FIA) to launch an inquiry into its merger with PSM, which was carried out without a feasibility study. According to the Auditor General’s office, the non-profit trust was merged into PSM without due process, further worsening the mill’s financial losses, which have now crossed Rs206 billion.The audit revealed that 343 employees of Hadid Welfare Trust were placed on PSM’s payroll, creating an additional burden of Rs160 million. The Departmental Accounts Committee had earlier ordered a ministerial inquiry into the matter, and a committee was formed on October 24, 2024.PAC Chairman Junaid Akbar asked who was responsible for the unlawful merger. PSM officials said the decision was taken under Brigadier Shuja, who has since passed away. “Perhaps it is only because he is no longer alive that this matter has surfaced. Had he been alive, no one would have dared to raise the issue,” the chairman remarked. The PAC decided to refer the matter to the FIA, prime minister and Parliamentary Privileges Committee for further action.The committee also expressed concern over non-recovery of Rs2.82 billion from the National Transmission and Dispatch Company (NTDC) for land leased from PSM.Audit officials informed that a 75.5-acre parcel of PSM land had been leased to NTDC for laying transmission lines to connect the Lucky Power Plant with the national grid. While Rs279 million had been recovered, the remaining dues were still pending.The PAC chairman questioned why the matter had already been referred to the FIA without PAC’s approval. “We had said we would send it to the FIA, but they referred it themselves. What grounds did you have for doing so?” he asked.The PAC directed the Ministry of Industries to convene a meeting and resolve the dispute within one month.Member Hasan Tariq said that if NTDC continued to show non-cooperation, the committee should be informed immediately.The committee stressed that financial recoveries must be ensured and instructed the ministry to submit a compliance report within the stipulated timeframe.While examining another audit para related to K-Electric’s billing dispute, audit officials informed the committee that due to PSM administration’s negligence, K-Electric had issued a bill of Rs800 million without properly transferring power meters.It was revealed that between July 2022 and June 2023, PSM consumed 46.4 million electricity units, but mismanagement and incorrect categorisation caused over Rs1 billion in additional losses. The PAC directed that the dispute with K-Electric must also be resolved within one month.
