PM Nawaz quietly takes back powers to sack public sector company heads

[WebGuru]

ISLAMABAD: After three decades of devolution, the Pakistan Muslim League-Nawaz government has silently restored powers of the prime minister to sack heads of public sector entities (PSE) without assigning reasons.

The government or the prime minister did not have the powers to remove a chief executive officer or managing director of a PSE under the Companies Ordinance of 1984 which had ensured that heads of such entities took independent commercial decisions in the best interest of the companies.

In fact, the powers to remove a chief executive were well defined in the 1984 law so that heads of public sector companies could not play in the hands of the government or any other interest group. The chief executives also had security of tenure under the law.

The chief executives of companies will now tend to follow written or verbal directives of the ministries concerned to save their jobs and, at the same time, try to balance rights and powers with boards of directors.

Informed sources told Dawn that amendments to the law were made following resistance in recent years by some chief executives who approached high courts against removal orders issued by respective ministries with the approval of the prime minister. The high courts had set aside the removal orders.

In one such example last year, the government had removed chief executive of Sui Northern Gas Pipelines Limited Arif Hameed when he refused to sign agreements relating to import of liquefied natural gas (LNG) and its sale to consumers on terms unacceptable to his company and the board of directors.

The Lahore High Court had set aside his removal order and the board of directors also turned down a government request to remove him through a majority vote until he tendered resignation to avoid inquiries.

Under the 1984 law, only “the directors of a company by resolution passed by not less than three-fourths of the total number of directors” could remove a chief executive before the expiration of his term of office notwithstanding anything contained in the articles or in any agreement between the company and the chief executive.

The government has changed this protection available to chief executives by adding a sub-clause to Section 191 of the Companies Ordinance 2016 promulgated on Nov 11, which says that the protections and conditions provided in the sections 186 and 187 shall not apply to a person nominated by the government.

Another new clause empowering the government to remove a chief executive or managing director of a state-owned company said the chief executive would “hold the office during the pleasure of the government”.

The change in the law will now enable the government to directly remove chief executives of about 100 public sector companies without requesting or manipulating the boards of directors in case heads of these companies decide to take independent decisions against the wishes of federal ministers and the Prime Minister Office.

The new law also empowered the government to nominate and appoint the chief executive of a company where majority of directors are nominated by it and such a nominee will “hold office during the pleasure of the government”.

Under the new law, the terms and conditions of appointment of a chief executive will be determined by the board or the company at a general meeting or by the government in case of a PSE.

It says: “The chief executive shall if he is not already a director of the company, be deemed to be its director and be entitled to all the rights and privileges, and subject to all the liabilities, of that office. No person who is ineligible to become a director of a company under section 153 or disqualified under sections 171 or 172 shall be appointed or continue as the chief executive of any company.”


Source: http://www.dawn.com/news/1299920/pm-takes-back-powers-to-sack-heads-of-public-entities?preview

 

[WebGuru]

Our power-hungry PM Sharif is so insecure and always ready to act like dictators.

 

[Waseem]

Our power-hungry PM Sharif is so insecure and always ready to act like dictators.

How many more examples do people need before they admit this guy is more power hungry than anyone around. They didn't hold local body elections for years and years unitil court forced the to but they haven't given them any powers yet.
Another so called power hungry leader called Imran Khan held the local body elections within first year in his first ever chance to rule a province, gave them powers and funds and even PTI own MPAs are protesting why other party local body reps are getting funds. Giving full power and independence to police is another example which Sharif brothers haven't done for decades.

 

[WebGuru]

How many more examples do people need before they admit this guy is more power hungry than anyone around. They didn't hold local body elections for years and years unitil court forced the to but they haven't given them any powers yet.
Another so called power hungry leader called Imran Khan held the local body elections within first year in his first ever chance to rule a province, gave them powers and funds and even PTI own MPAs are protesting why other party local body reps are getting funds. Giving full power and independence to police is another example which Sharif brothers haven't done for decades.

Sad but true after all these examples they still they think Imran is more power hungry

 

[WebGuru]

This is one of those reasons why our nation is suffering from decades but nobody is talking about this issue in media and that shows you how successfully PMLN govt is managing the media.

 

[WebGuru]

Amir-ul-Momineen at work again...

Five regulatory bodies placed under ministries concerned

ISLAMABAD: Ignoring opposition from the provinces, Prime Minister Nawaz Sharif on Monday took a major policy decision and transferred the administrative control of five key regulatory bodies to the respective ministries, apparently compromising their relative independence under the cabinet division.

“In terms of Rule 3(3) of the Rules of Business, 1973 the prime minister has been pleased to transfer control of following regulatory authorities from cabinet division to the divisions mentioned against below each name,” said a notification.

The notification issued by the cabinet division said the National Electric Power Regulatory Authority (Nepra) had been given under the control of the Water and Power division, Oil and Gas Regulatory Authority (Ogra) under the Petroleum and Natural Resources division, Pakistan Telecommunication Authority (PTA) and Frequency Allocation Board (FAB) under the Information Technology and Telecom division and the Public Procurement Regulatory Authority (PPRA) under the Finance Division.

These regulatory bodies were given under the cabinet division by various governments in the past to ensure that they enjoyed independence in decision-making instead of being subservient to the ministries for routine administrative issues like approval of leave, visits abroad and appointments.

According to sources, the decision was the result of the resistance two key regulators — Nepra and Ogra — had been showing in implementing directives of the relevant ministries on matters of public interest, particularly tariff issues.

The ministries of water and power and petroleum had been regularly complaining to the prime minister about these regulators, the sources said.

It was particularly pointed out that without changing the regulatory environment, the Nandipur power project and Sahiwal coal-fired project would never become economically viable and the regulators would not allow higher system losses in electricity and gas distribution to be passed on to the consumers. Likewise, major energy projects would continue to face challenges, putting into question the government’s commitment of ending energy shortfall by 2018, it was feared.

Therefore, the subject of transfer of administrative control of the regulators was first put on the agenda of the Dec 16 meeting of the Council of Common Interests (CCI) but was opposed in writing by the Khyber Pakhtunkhwa chief minister who said the critical matter of public importance, having far-reaching consequences for his province, should not be decided upon in haste and should be withdrawn from the agenda.

The sources said the summary was officially withdrawn from the agenda. The issue was nevertheless taken up through a presentation, despite not being on the agenda, and the proposal was opposed by the Sindh and KP governments. The provinces were told to study the proposals that entailed comprehensive amendments to the respective law and that the issue would be formally taken up for a decision in the next CCI meeting after input from legal experts.

Meanwhile, the prime minister was advised that he had the powers under the rules of business to take decisions on the issues relating to “allocation of business/charge or responsibilities” of the federal ministries under Rule 3(3) of the Rules of Business, 1973 while matters relating to “transactions” of the federal government could be decided by the cabinet, the CCI or parliament, as the case might be.

Under Rule 3(3), “The business of government shall be distributed among the divisions in the manner indicated in Schedule II: provided that the distribution of business or the constitution of the division may be modified from time to time by the prime minister”.

As a consequence, the five regulatory bodies were removed from Entry 53 of the Cabinet Division’s Schedule II and placed under the respective ministries.

However, matters of transactional nature would still need further amendments to the rules of business. Therefore, “necessary amendments in the Rules of Business, 1973 will be made accordingly,” the notification said.



Source: http://www.dawn.com/news/1303391