Anti Privatization Alliance leaders Farooq Tariq and Amin Bhatti told press reporters on 21st June at Lahore Press Club that PECO is also been sold quietly at a very throw away price. The PECO is been taken over by Arif Habib group for only 50 millions Rupees while the price of the 2280 canal land owned by PECO is over 23 billion Rupees. “ We are bringing this case of corruption for the first time in the press as the Arif Habib group has been working very quietly to buy off the shares from the Market to take control of PECO” Farooq Tariq and Amin Bhatti told the press conference.
PECO was the largest public sector engineering company in Pakistan until it was privatized by Pakistan Peoples Party government through public shares in 1994. PECO shares lost the price at the share market and one of government controlled National Investment trust NIT sold 22 per cent of PECO shares very quietly to Arif Habib group at a price of 3.56 Rupees per share. This enabled Arif Habib to take control PECO. Now Arif Habib, a stock broker from Karachi who is facing a case in Supreme Court of Pakistan on the question of Pakistan Steel Mills Karachi, is one of the nine board members along with five more from his group. The government has only three members left on the board of PECO.
Farooq Tariq told the press reporters that privatization has become mother of all corruption cases. The privatization Commission has played an important role in handing over this very expensive organization on a very low price. “ This will enable the group to have total monopoly on the steel and engineering sector of Pakistan” he told the press reporters.
“Arif Habib group has bought Pakistan Steel Mills on 31 March for only 22 billion Rupees, the actual price was more than 300 billion Rupees, a day later he took over PECO on 1st April 2006 quietly” Farooq Tariq said, It was fast money making game with the close association of his friends in the military regime, he said.
Anti privatization Alliance demanded an immediate cancellation of the deal, arrest Arif Habib on charges of corruption. End privatization and no more privatization, the APA leaders demanded.
A news item based on this information is pasted by BBC Urdu.com
Press release for immediate use
Privatisation must go, Supreme Court must take up the case of PECO, another victim of Arif Habib Group
Anti Privatisation Alliance Pakistan while welcoming the decision of Supreme Court of Pakistan to cancel the privatisation of Pakistan Steel Mill has demanded an immediate end to the whole process of privatisation. “Privatisation in Pakistan has become the mother of all corruption practises, it is message of unemployment, price hike and loot and plunder of national assets” Farooq Tariq secretary APA said in a press statement. "The Supreme Court of Pakistan has just taken up one case and found all sort of irregular ties, open any case, there will be more such practises in every case, he said. Farooq Tariq said the 16 years of privatisation has not been a recipe to strengthen the economy, on the contrary, it has become a tool of corruption, The Steel Mill case has proved that privatisation is sick process and it must end and end now.
Farooq Tariq demanded that Supreme Court Pakistan must take notice of the taking over of Pakistan Engineering Company PECO by Arif Habib group. Arif Habin group have become the real beneficiary of the privatisation process through corrupt practises. Arif habin group have used the loop hole in the process of privatisation to take over the commanding heights of the economy.
Please contactr for more information
Farooq Tariq
general secretary Labour Party Pakistan
0300 8411945