LAHORE, Jan 14: The Punjab Industrial Estates Development and Management Company (PIEDMC) chairman is alleged to have awarded Rs754 million contract for laying underground power supply system at the under-construction Sundar Industrial Estate on the Raiwind Road to a German company operating in Pakistan without obtaining prior approval of the company’s directors or following the procedures.

However, PIEDMC chairman Mohsin Syed denied the charge, saying the board of directors had approved the contract, which was given to the German company according to the procedure laid out for the award of such contracts.

Sources in the company, nonetheless, insist that the chairman was severely criticized by the directors for not seeking the board’s permission prior to awarding the contract, as well as for circumventing a transparent procedure of giving the contract at the last board meeting.

At the last board meeting, the sources claim, the directors had also decided to appoint a new, full-time chief executive officer (CEO) of the PIEDMC. At present, the chairman holds the charge of the CEO of the company, which is a government of Punjab undertaking operating as a public-private entity. “Mr Syed has for the time being asked to officiate as CEO till the appointment of regular CEO,” the sources say.

They say the decision to appoint a full-time CEO had been taken in order to improve the working of the company in line with better corporate governance principles.

They say Mr Syed, at the time of formation of the company, had appointed himself as the CEO of the company as well.

But Mr Syed says no such decision had been taken. However, he says, it had been decided to appoint separate chief operating officers (COOs) for all the industrial estates to be developed and managed by the PIEDMC.