September 29, 2020

Auditor General Report Of PSM’s 2018-2019 Accounts Unveils Several Flaws In Its System

Conducting a detailed analyses of the Pakistan Steel Mills 2018-19 accounts, the Auditor General Report has finally been released and has highlighted major shortcomings in the accounts of the PSM. The government had ordered an audit of PSM’s 2018-19 accounts in July 2019, to make it more suitable for privatization. In the AGP report, the auditors have highlighted several discrepancies, which are as follows:

  • Salaries of employees and fixed overheads of the industry are still being made through the federal treasury, as the mill has stopped production since 2015.
  • PSM’s management has not made any efforts to recover Rs2.79 billion refundable taxes, showed on PSM’s balance sheets.
  • PSM is overstaffed and has hundreds of more employees than required.
  • PSM officials failed to recover 344 acres of their land, which has an estimated value of Rs3.44 billion. The estimate of the value of land was made by experts from the privatization commission.
  • Auditors observed mismanagement in the allocation of allowances, medical facilities and allocation of vehicles, which has resulted in losses worth millions.
  • Auditors said that there was no system for carrying out estimations of scrap material present at the mill, which has been booked at zero value.
  • There is no mechanism for depreciation of different assets of PSM and the whole facility is being depreciated at 5% annually.
  • No valuation of immovable property has been carried out since 2015.

 

Add comment