Chief Financial Officer (CFO) Shahid Mohsin Shaikh, Pakistan Steel Mills (PSM), has resigned after he developed serious differences with Chief Executive Officer (CEO) Major-General Muhammad Javed (Retd) over financial matters, well informed sources told Business Recorder.
An official spokesman, however, stated that the CFO had resigned for personal reasons. Shaikh who joined PSM in April 2012 on contract was a member of Board of Directors and Price Committee. The sources said, Saud Khan, General Manager Finance has been assigned the additional charge of CFO.
This newspaper carried a story on Thursday that CEO and CFO had locked horns over payment of $15 million to ICIOC Iran without getting the required iron ore. According to sources, the CEO maintained that the CFO had created an awkward financial situation by stating before the Finance Minister that PSM could pay for the iron ore requirement as stipulated in the indicated capacity utilisation targets by ECC.
“CFO”s statement led to an impossible situation as PSM has little cushion to cater for sustained supply of iron ore and coal,” the sources quoted CEO as saying. Official documents available withBusiness Recorder reveal that there was a tussle between the CEO and CFO since many months. Insiders claim that CFO failed to deliver which is the main reason for his resignation. His resignation will be approved by the Board of Directors in its next meeting.
A few days earlier, General Manager Arif Shaikh was suspended by CEO. Farrukh Sadiq Incharge Audit Department of PSM service contract was fired by CEO after he made some audit observations against the then Chairman and current CEO from 2006 to 2008. PEO commercial Wasif Mehmood was removed from the post and transferred to Human Resource Department. The CEO, is accused of failing to deliver. He is proceeding to perform Umrah on January 26.
According to sources, there are numerous audit observations pertaining to his tenure as Chairman from September 2006 to May 2008. PSM has to bear an additional burden of Rs 3.44 billion, due to higher price of iron ore in the year 2008-09 in the absence of 6th generation long-term contract for 5 years, a report revealed.