PESHAWAR: The board of directors of Khyber Pakhtunkhwa Economic Zones Development and Management Company has yet to take up a fact-finding report regarding anomalous administrative and financial practices in the affairs of the government-owned company despite lapse of several months, according to sources.

The two-member committee comprising Law Secretary Asghar Ali and Safeer Ahmed, the additional secretary of finance department, was formed on November 23, 2017 after the dissolution of the company’s previous board due to its disinterest in the work.

Sources told Dawn that the committee completed its report in February; however, presented it to the company board earlier in July. “It is not immediately clear as to where it got stuck for about five months,” they added.

48-page fact-finding report paints dismal picture of company affairs

The minutes of board’s meeting available with Dawn show that the report was put twice on board’s agenda — on July 10 and August 10, 2018 — however, it was deferred on both the occasions.

The provincial government had formed EZDMC in August 2015 for rapid industrialisation under KP Industrial Policy, 2016. It was tasked to set up 12 economic zones and create about 200,000 jobs. Towards the end of last year, the company board was dissolved while its former chief executive Mohsin Syed resigned after his arrest by NAB Punjab. NAB Khyber Pakhtunkhwa is also investigating charges of corruption and mismanagement in the company.

The 48-page report available with Dawn paints a dismal picture of the company affairs. It has documented instances of administrative, financial and managerial lapses in great length.

The committee compiled the report with the help of a 48-point questionnaire and in most cases the officers declared the company’s response to their questions as incorrect.

The findings said that company board failed to comply with Public Sector Companies Rules, 2013 and did not finalise policies and a workable strategy setting priorities with definitive timelines, which was the primary responsibility of any BoD.

It said that BoD was required to chalk out strategy for its operations but it remained unsuccessful to do so despite establishing strategy and business development department back in October 2016.

In its replies, the company also acknowledged that heads of human resource committee and finance strategy committee were business partners in a company.

The report also notes that former chairman of BoD Ghulam Dastagir was involved in day-to-day affairs of the company and attended most of the meetings with the investors in violation of rules 4(2) C of PSC Rules 2013. “He was also reimbursed for participating in international events and meetings with delegates aboard,” the committee said.

It said that key members of former board used commercial and strategy department for their personal advantage and a position of chief operating officer (COO) was created in 10th meeting of human resource committee. Adil Salahuddin, an executive, was nominated in the same meeting, where only two members were present. “There were no advertisements and internal assessment for the position,” it added.

Curiously, it did not occur to officials concerned to place the appointment of COO before the board, when the former CEO was arrested by NAB. On May 25, 2017, BoD meeting approved appointment of COO and the powers of CEO were also vested in him.

The resignation of Mohsin Syed was accepted on August 10 during the BoD meeting without any time limit for leaving charge. The same meeting also approved specific amendments to the minutes of previous meetings and the word ‘absent’ was changed with ‘unavailable’.

The word ‘unavailable’ was used for casual leaves, sick leaves, annual leaves, being away from office due to any reason whether official or personal and such other circumstances, which may keep the person concerned from his official requirements at the office.

“With this leverage, the former CEO rarely attended office and COO supported him in his absence. The former CEO received all his salaries,” said the committee.

The members of the committee declared the reported progress of the company as “complete disappointment” after putting burden of Rs30 million on the province’s kitty per month in lieu of salaries and operational expenses.

According to the report, finance department released Rs700 million to the company for incentives offered in KP Industrial Policy; however, it failed to disburse even a single rupee and also failed to compile policies and procedures for the disbursement.

A project to train 10,000 students in collaboration with UNDP in Haripur managed to produce only 100 trainees. It was later discontinued.

Salman Masood, a civil servant, was hired as manager legal of the company without following the required procedures. He got monthly salary of Rs450,000 per month besides drawing salary as OSD from establishment department.

Amina Tariq Gilani, the executive coordinator, was promoted as secretary of the company in violation of rules as the said position was not advertised.

The report said that the services of company’s lawyers Ahmer Bilal Sufi and Naeem Khan were retained despite clear instructions of chief minister instruction. The company argued that law department’s instructions did not apply to them. Ironically, the opinion was obtained from the firm of Ahmer Bilal Sufi, who was direct beneficiary of the decision and took around Rs1 million per month.

The report notes that on basis on the findings the inquiry committee recommended that in order to arrive at logical conclusion about the company affairs, a detailed audit of the company should be carried out through a reputed chartered accountancy firm.

However, sources said that former members of the board were removed for lack of interest, however, the reconstituted board was nothing more than change of faces as the new members failed to hold their predecessors accountable and implement the government’s pledge of industrial rehabilitation.

Published in Dawn, August 27th, 2018