Rs 284 billion loss, Rs 10 billion theft: FIA inquiries into Pakistan Steel Mills remain pending

Two Federal Investigation Agency (FIA) inquiries concerning Pakistan Steel Mills (PSM) have remained pending for more than four years,

KARACHI: Two Federal Investigation Agency (FIA) inquiries concerning Pakistan Steel Mills (PSM) have remained pending for more than four years, despite official correspondence from the FIA, Ministry of Industries and Production, Public Accounts Committee (PAC) and National Assembly Standing Committee, documents available with Minute Mirror reveal.

The records concern FIA Enquiry No. 44/2022 and Enquiry No. 46/2022, with one set of documents relating to audit observations involving losses of more than Rs 284 billion and another concerning alleged theft of material valued at around Rs 10 billion.

An FIA Corporate Crime Circle Karachi letter dated February 6, 2023, concerning Enquiry No. 44/2022, referred to audit observations contained in 54 official memorandums issued by the PSM audit authorities. The letter cited allegations of embezzlement, misappropriation, criminal breach of trust, negligence and losses exceeding Rs 284 billion.

The FIA sought separate reports regarding all 54 audit observations, along with the names, designations and CNIC details of officials considered responsible. The information was requested by February 10, 2023, for further investigation.

Another official letter, issued by the Ministry of Industries and Production to the FIA Director General on July 18, 2022, concerned theft incidents reported at the PSM main plant.

According to the letter, PSM employee Engr. Abdul Rehman, A-XEN, CMD/Security, had informed the Chief Executive Officer that theft incidents had allegedly occurred across various departments of the main plant. He alleged that the involvement of senior administrative officials could not be ruled out and maintained that theft on such a scale would not be possible without possible involvement of the security department.

The estimated value of the allegedly stolen material was placed at Rs 10 billion. The ministry subsequently requested the FIA to conduct an expedited inquiry to determine those responsible.

The matter also reached the National Assembly’s Public Accounts Committee. A July 20, 2022 reminder from the PAC Wing referred to a request for investigation into alleged criminal negligence and poor performance at PSM, which was stated to have caused a loss of Rs 284 billion between 2018 and April 2022. The letter noted that an earlier communication had not received the required response and that a report was still awaited for presentation before the PAC.

Meanwhile, a National Assembly Standing Committee on Industries and Production meeting held on August 25, 2022, also took up the reported theft of valuable items from PSM. The committee expressed concern over the estimated Rs 10 billion loss and directed the ministry to pursue the matter with the FIA and ensure early completion of the inquiry so that those found responsible could face action.

The documents show that the financial losses and theft figures were subjects of official audit observations, departmental correspondence and investigative proceedings. However, allegations contained in the documents remain subject to investigation and determination by the relevant authorities.

Despite repeated correspondence and directions recorded in the documents, the status of the two FIA inquiries remains unresolved, raising questions about the pace of accountability proceedings concerning Pakistan Steel Mills.

The pending matters also highlight the need for the relevant authorities to complete the investigations, establish responsibility where evidence supports it, and place the findings before the competent forums.