PESHAWAR: Peshawar High Court has declared as illegal posting of civil servants as chief executive officers (CEOs) of different water and sanitation services companies (WSSCs) by provincial government and set aside the relevant notifications of their appointments issued in 2024.
A bench consisting of Justice Syed Arshad Ali and Justice Babar Sattar pronounced that the impugned notifications issued on Sept 11, 2024, about appointment of civil servants as CEOs of six of the WSSCs, were not only contrary to law but also to the scheme of corporate governance discussed in detail by the court.
While partially allowing a petition filed by an engineer, Mohammad Naeem Khan, against the impugned appointments, the bench directed the relevant board of directors of the said WSSCs to complete process of appointment against the posts of CEO within three months.
“As a stopgap arrangement, the chairman of the board of directors of each WSSC shall perform the function of CEO solely for the purpose of convening meeting of the respective boards, framing the eligibility criteria and qualifications for the position of CEO, advertising the post of CEO; and completing the process of appointment or recommendation for appointment strictly in accordance with law,” the bench ordered in its 17-page detailed judgement.
PHC gives three-month time to relevant BoDs for appointment against the posts
The bench, however, didn’t agree with the petitioner’s contention that being a specialised service an engineer should be appointed to the post of CEO, observing “we could not find ourselves persuaded by the said assertion, because it is the public sector company, which has to lay down the criteria for such appointment aligned with the requirements of the job.”
The six WSSCs include that of Peshawar, Bannu, Kohat, Dera Ismail Khan, Mardan and Swat.
Senior lawyer Shumail Ahmad Butt represented the petitioner, arguing that the appointment of civil servants, on transfer, as CEOs of WSSCs was illegal.
He stated that the WSSCs were public sector limited companies, and to ensure efficient service delivery in various districts, several companies were incorporated under section 42 of the erstwhile Companies Ordinance, 1984.
He said that those companies functioned as independent corporate entities, having their own memoranda and articles of association (AoA), prescribing the mode and manner of appointment of their CEO.
He stated that those companies were further regulated by the provisions of Companies Act, 2017, as well as various notifications and policy framework issued by federal and provincial governments. He added that under the prevailing legal framework, a civil servant couldn’t be appointed as CEO of the said companies merely through transfer or posting.
An additional advocate general and lawyers representing the respondents contended that the Companies Act empowered the provincial government to nominate chief executive of a company where majority of directors were nominated by it, therefore, the impugned appointments/transfer of civil servants against positions of CEOs were within its jurisdiction.
“It is by now the global idea that public sector work, such as water management, waste management, public services at grassroots level be governed through the formation of public sector companies,” the bench observed.
It said that the key principle behind the said idea was efficiency and effectiveness that public sector companies could operate with more flexibility and autonomy, allowing them to respond quickly to changing circumstances and make decisions without being bogged down by bureaucratic processes.
Published in Dawn, June 19th, 2026