‘Indian may take over one of PSM bidders’
By Nasir Iqbal
ISLAMABAD, June 22: The Russian group that was part of the consortium which has purchased Pakistan Steel Mills might be acquired by an Indian-born steel baron, Supreme Court was told here on Thursday.
Ahmer Soofi Bilal, counsel of Iftikhar Shafi, cited reports stating that Lakshmi Mittal, the Indian-born steel magnate, whose firms now operate in 16 countries, had shown interest in buying the Magnitogorsk Steel Works, which was part of a three-party consortium that purchased 75 per cent shares of the steel mills on March 31.
Iftikhar Shafi had accused one of the bidders, Arif Habib, of being involved in a Rs18 billion fraud.
Chief Justice Iftikhar Mohammad Chaudhry, heading the nine-member bench, asked the counsel to confine his arguments to his objections to Arif Habib becoming a successful bidder.
Hafeez Pirzada also challenged the validity of Ahmer Bilal Soofi’s arguments against the sale of the country’s biggest steel concern.
Arif Habib was also present in the court room to hear arguments about his responsibility in the crashes of Karachi Stock Market and Lahore Stock Market in 2000 and 2002, respectively.
Ahmer Bilal questioned the prudence of Privatisation Commission which, despite all scrutiny, had pre-qualified a person, whose past was clouded with suspicion and one who faced damages suits worth Rs18.2 billion, to participate in the bidding for the steel mills.
Citing a United Nations Convention on Corruption, the counsel argued that the international community had supported cancellation of any agreement or a grant of concession that smacked of corruption or lacked transparency.
He also quoted the mission statement of the privatisation commission which, he said, had always emphasised privatisation of entities, for the benefit of the people, in the right way, at the right price.
The counsel also questioned the pricing of the privatised unit.
He reminded the court that the quality of managers to run an industrial concern was one of the most important pre-requisites for filtering out bidders, adding that it was one of the most important responsibilities of the Privatisation Commission.
Arif Habib, being a veteran of the stock exchanges, knew every company’s worth and was in an advantageous position in the bidding process, the counsel said, adding that despite that he was put in-charge of one of the strategic assets of the country.
He also emphasised that PSM’s shares were priced four times higher in the open market than their book value, which was shown to be Rs12.3.
Mujeeb Pirzada, counsel for the Pakistan Steels People’s Workers Union, rejected the ‘middle way’ suggested by Attorney-General Makhdoom Ali Khan and his request to the court to direct the federal government to order an inquiry into the privatisation of the steel mills.
He argued that when the prime minister and the entire government were responsible for throwing away the steel mills for only Rs21.68 million, then asking the federal government to investigate would be against the principles of natural justice.
He said that no one could fairly judge one’s own cause, adding that had the federal government been fair, it would have on its own ordered an inquiry by now.
From day one, he said, the government had been interested in ensuring that the steel mills went to Arif Habib, who had connections with the City Global Group which, in turn, had connections with the government.
Terming the privatisation of the steel mills a ‘transparent fraud’, he said that the entire proceedings were done in an unholy haste and it should be re-done.
Barrister Zafarrullah Khan of the Watan Party, who initially challenged the privatisation of the steel mills, also concluded his rebuttal to the respondents’ arguments.
On Friday, Sharifuddin Pirzada, legal counsel of the PC, and Hafeez Pirzada will have the chance to oppose points raised by the petitioners.
http://www.dawn.com/2006/06/23/top3.htm