The Chief Executive Officer (CEO) of Pakistan Steel Mills (PSM), Ashique Ali, has resigned from his position according to well-informed sources in Ministry of Industries and Production (MoI&P), reported a local English newspaper.
This comes in after the appointment of Chairman of the Board of Directors (BoD) Aamir Mumtaz for a three year period.
The report stated that the CEO has also tendered his resignation as Member of the Board of Directors after the PSM Board also granted all necessary authority and powers to the elected Chairman to execute and implement the revival plan and process of PSM. Ashique Ali himself confirmed that he is no more the CEO or a Board member of PSM.
The government is trying to revive Pakistan Steel Mills after inflicting a financial loss of about Rs. 15 billion (Rs. 1.5 billion per month) to the national exchequer. PSM’s liabilities are about Rs 300 billion – the audit of accounts of three years are yet to be finalized.
Although Privatization Commission (PC) has initiated the process of hiring a consultancy firm to evaluate the offers of private parties which have expressed an interest in revival of PSM, it clearly took the stance in one of the ECC meetings that revival of any entity on Public Private Partnership (PPP) is out of its mandate.
Advisor to Prime Minister on Commerce, Textile, Industries and Production and Investment, Abdul Razak Dawood, who also attended the Board meeting on September 13, 2019 in Karachi, expressed the hope that all the Board members and PSM management will support the newly-elected Chairman to execute and implement the revival plan of PSM.
However, insiders claim that the endorsement of newly-elected Chairman by the PSM Board was in “grave violation” of the Companies Act and code of corporate governance rules and it has created a case for penal action against the Directors of the Board under Rules and the Company Act in terms of Section 508 of the Ordinance.