KARACHI: The Federal Investigation Agency (FIA) has found enough “evidence” against senior management of the Pakistan Steel Mills of misappropriating funds worth millions of rupees in procurement and contracts of medicine supplies for the hospital of the country’s largest industrial complex, officials confirmed here on Friday.

The FIA, which initiated an inquiry on a complaint filed by a local businessman, found that several officials of the PSM were allegedly involved in bungling of millions of rupees while procuring medicines for the state-owned steel giant’s employees that had already been facing a financial crisis.

“After the months-long inquiry the FIA has found evidence and witnesses to book the officials concerned in different cases,” said an official. “For that we have moved a request with our findings report to the high-ups seeking their nod for the registration of FIRs against at least one former and four serving officials, who are found directly involved in such malpractices, which cost the national exchequer millions of rupees. We are just waiting for a green signal from our high-ups to register the cases.”

He said the proposed cases would be registered under Sections 409 [criminal breach of trust by public servant, or by banker, merchant or agent], 420 [cheating and dishonestly Inducing delivery of property], 468 [forgery for purpose of cheating], 471 [using as genuine a forged document], 161 [public servant taking gratification other than legal remuneration in respect to an official act] and 109 [punishment of abetment if the Act abetted committed In consequence and where no express provision is made for its punishment] of the Pakistan Penal Code.

The financial crisis being faced by the Pakistan Steel Mills led to the stoppage of salaries to its employees. Only earlier this month, the Economic Coordination Committee of the federal cabinet approved two months’ salary amounting to Rs760 million for the PSM employees.

Amid such a crisis and financial crunch, the FIA officials said the misappropriation and leakages of funds was one of the several causes of its downfall, which was needed to be addressed at the earliest. The recent investigation into one of the allegations was part of the same exercise.

“The officials found allegedly involved in the misappropriation are in charge the medical department, chief medical officer, APEO, accounts officer and an ex-APEO of the Pakistan Steel Mills,” said the official while citing content of the findings report. “During the course of inquiry, it has been established after scrapping tenders, alleged persons in collusion got budgets approved for purchase through imprest account. At first stance they got Rs10 million, of which Rs3 million was used for purchase through the imprest account and Rs7 million was used through the spot purchase cell of the Pakistan Steel Milss.”

Later on, he said, this provision of budget rose to Rs26 million and most purchases were made from unregistered sellers of medicines and from “freelancers” who were originally engaged in supply of hardware, tools and general items. Even “bogus vouchers” were used to show supply and payments, added the official.

Published in Dawn, October 1st, 2016