LAHORE, June 27: Water and Power minister Chaudhry Ahmad Mukhtar on Wednesday won his battle against Rasool Khan Mehsud, managing director of the National Transmission and Dispatch Company (NTDC), when he got Khan’s “removal notified” after a week-long stand-off between the two, only to “illegally” appoint his successor – Naveed Ismael.

Mr Ismael, being a private sector professional, can only be inducted in a government department through a selection process under the Company’s Act. But, the process was scuttled by his direct appointment.

Mr Ismael had also served the Abraj Capital, which took over the Karachi Electric Supply Company (KESC) in 2008 in dubious circumstances, generating rumours that the highest office of the state was involved in the takeover.

According to sources in the ministry, his appointment notification, though signed and kept by the minister, was, however, not circulated for reasons best known to the minister. But, according to the contents of the letter, Mr Ismael has been given the three most crucial portfolios in the sector – managing directorship of the NTDC and Pakistan Electric Power Company (Pepco), which was dissolved some two years ago, and the Genco Holding Company.

The appointment also ignores huge problems that Mr Ismael had been having with the Board of Directors of the Genco Holding Company ever since Prime Minister Yousuf Raza Gilani appointed him as managing director on Feb 17 – that too without due process. The company was incorporated with the Security Exchange Commission of Pakistan (SECP) on Feb 10, 2012, and his appointment letter came from the Prime Minister’s Secretariat even before the first meeting of the BoD. The haste with which it was issued could be gauged from the fact that even salary, perks and privileges of the appointee were left for a later stage of negotiations – causing more problems later on.

The PM House then forced the BoD to validate the appointment. Instead of validation, the BoD, in its first meeting noted: “since the PM has already taken the decision, we accept him as the PM’s appointee.” The Board, however, made things difficult for Mr Ismael when it came to salary part. “Mr Ismael demanded Rs4 million per month, which we simply refused,” says a BoD member.

“Ultimately, after a tedious process of negotiations, he (Mr Ismael) came down to Rs2.5 million per month. The Human Resource Department of the Company, after due directions from the PM’s Secretariat, came up with Rs1.9 million per month package. The Board refused even that suggestion and sent papers to the prime minister so that he himself settles the issue of his appointee. That was the point where things were stuck when Mr Ismael’s appointment as NTDC managing director came on Wednesday. The Board has no idea what would be his relationship with the company and at what terms and conditions,” he said.

“Mr Ismael would now be virtually running the entire power sector – generation (through Gencos), transmission (through NTDC) and umbrella organisation (Pepco),” he said and added: “And, to make the matters worse, all three appointments are illegal.”

Despite repeated attempts, Ahmad Mukhtar and Naveed Ismael were not available for their comments.