Pak Steel scam: many dealers issued more than one dealership certificate: FIA

[Naveed Yaseen]

AAMIR MAJEED
KARACHI (August 26 2009): The Federal Investigation Agency (FIA) has detected that the sacked chairman of Pakistan Steel Mills (PSM) had issued more than one dealership certificate to many dealers, which caused ups and downs in the steel industry.

When the reason for constant decline in the production capacity of the Pakistan Steel and the rising graph of losses was inquired, it was found that the sacked chairman, Mueen Aftab Sheikh had issued more than one dealership certificate with different names to an applicant, official sources told Business Recorder on Tuesday.

The sources disclosed that the dealers having more than one certificate had created their monopoly in the industry and forced the management of the Pakistan Steel to follow their orders. As the Pakistan Steel opened a tender, the powerful steel dealer mafia purchased products more than their quota to maintain its hold in the market, the sources added.

They said, to investigate into the Pakistan Steel scam, the agency had circulated call notices to about 400 steel dealers across the country and directed them to record their statements. The agency had issued call notices to all the registered dealers in order to sort out paper companies from the 400 companies' list, the sources maintained.

Despite sending reminders the agency could not receive response from many traders who were registered in official records of the Pakistan Steels, while many other companies reported to FIA Crime Circle to record their statements, they said, adding the FIA had decided to launch operation against the ghost companies.

It may be mentioned here that the FIA has received information that the sacked Pakistan Steel chairman had allegedly received bribes amounting to Rs 280 million for the approval of new dealerships, besides other corrupt practices in award of tenders and products quota. The sacked chairman had granted about 350 new dealerships during his tenure. Out of this some 158 belonged to Karachi.

When contacted by this scribe, FIA Deputy Director Khaliq-uz-Zaman, and Investigation Officer (IO), Anwar Sheikh said it would be premature to pass a statement on Pakistan Steel issue. "The investigations are underway and the agency had called the dealers to record their point of view," the officials added

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