Ministry moves to ‘take over’ Lesco
February 02, 2013
ISLAMABAD: To get complete hold of Lahore Electric Supply Company Limited (Lesco), the Ministry of Water and Power (MoWP) has quietly moved a summary to the prime minister to replace its directors with those who enjoy confidence of the ministry as the present board of Lesco wants an independent CEO and other reforms.
Though the prime minister is competent to appoint directors of a distribution company but it has to be done through a Cabinet Committee on Restructuring in which Ministry of Water and Power is only the executing ministry, sources said.
Well-placed sources in Ministry of Water and Power told ‘The News’ that Lesco’s board was all set to appoint a new chief executive officer (CEO) for the distribution company as the selection process has already been completed and a mandatory nod from the ministry was being awaited. The Lahore High Court (LHC) has also passed an order in this regard, documents reveal.
The sources added that the directors of the Lesco board, who are being replaced, were reform oriented and certain measures were being taken to control the line losses as electronic meters and electronic billing was being introduced.
Spokesman for Ministry of Water and Power, M Tanvir, while commenting on the issue said when the government was taking board members from the private sector, there remained no room for speculation that they would be under ministry’s control. He said that the board members are changed after three years and the ministry had proposed the replacement of board members. Tanvir was of the view when the boards of distribution companies were changed, it was done through Cabinet Committee on Restructuring but was not sure that the replacement of the board members were also to be done through the Cabinet Committee on Restructuring.
On the other hand, when approached by ‘The News’ for his comments, Chairman Lesco board Ahmad Rafay Alam said that Lesco board was appointed by the PM through a selection process that involved the input of Cabinet Committee on Restructuring, consisting of deputy chairman of the Planning Commission, Finance Minister, Minister for Petroleum and Natural Resources and the Minister for Water and Power. As far as cabinet committee is concerned, the appointments of the board were part of a policy to restructure the power sector and the Ministry of Water and Power is only the executing ministry, the chairman held.
The summary sent by the Ministry of Water and Power to the PM dated January 03, 2013 did mention Cabinet Committee on Restructuring (CCOR) but proposed replacement of directors of the board by-passing the CCOR. The summary says, “The prime minister is pleased to constitute a Cabinet Committee on Restructuring (CCOR) of public Sector (SPEs) under the chairmanship of Minister for Finance in January, 2010 aiming to revamp and restructure these enterprises.
The cabinet, in its meeting of 10th March, 2010, approved a roadmap on the recommendations of CCOR which, inter alia, stipulated re-organisation of the Board of Directors (BoDs) of the identified PSEs including Pepco. The BoDs were required to observe the performance and business of DISCOs and put some appropriate piece of advice to the DISCOs to run their business. Presently, there are nine (9) BoDs of DISCOs duly constituted by CCOR, working under Ministry of Water and Power. CCOR conveyed reconstitution of Board of Directors of Lesco through Economic Reforms Unit (ERU) wing of Finance Division vide letter No. Mp.22-DS (ERO-II)/2011 dated 03-02-2011.
The existing composition of BOD Lesco is as follows: (i) Ahmad Rafay Alam, Advocate, High Court - Chairman of the Board. (ii) Mian Ijaz Gohar, Chairman Aptma. (iii) Prof Jamshed Hasan Khan, ‘Associate Dean, Executive Education of Production 86 Operations Management and Computer Applications at SDCB. (iv) Javed Hussain, Ex-MD, SSGC, SNGPL (v) President of the Lahore Chamber of Commerce & Industries (vi) Kamran Arshad, MD, Gulf Shipping Maritime Establishment - UAE. (vii) Muhammad Zakria Butt, businessman. (viii) Faisal Naqvi, Lawyer. (ix) Dr Khawar Daha, Doctor (Civil Society) (x) Zarine Aziz, former president, First Women Bank Ltd. (xi) Zahid Zaman, Citizen Action Forum (xii) Fazal Ahmad Khan, Ex-Member (Power) Wapda. (xiii) CEO, Lesco. (xiv) Joint Secretary (Power) Ministry of Water and Power. (xv) Representative of CCOR. (xvi) Iftikhar-ul-Haq, Privatization Commission.
In order to further improve the working of Lesco, reconstitution of the BOD Lesco is proposed. From the existing members enlisted at Para2/N following may be replaced/substituted. (i) Ahmad Rafay Alarn, Advocate - Chairman of the Board. (ii) Mian ljaz Gohar, Chairman APTMA (iii) Prof Jamshed Hasan Khan, Associate Dean, Executive Education of Production and Operations Management and Computer Applications at SDCB. (iv) Javed Hussain, Ex-MD, SSGC, SNGPL (v) President of the Lahore Chamber of Commerce & Industries. (vi) Dr Khawar Daha, Doctor (Civil Society) (vii) Iftikhar-ul-Haq, Privatisation Commission.
The following may be nominated as directors of BoD Lesco. (i) Pervaiz Ashraf (ii) Kamran Arshad (iii) Mian Tariq Rahman (iv) Moeed Yousaf (v) Muhammad Zakria Butt (vi) Ashraf Bhatti (vii) Tahir Khalique (viii) Tanvir Ahmad Khan (ix) Tanvir Tariq (x) Umair Siddique and Joint Secretary MoWP.”
Though the prime minister is competent to appoint directors of a distribution company but it has to be done through a Cabinet Committee on Restructuring in which Ministry of Water and Power is only the executing ministry, sources said.
Well-placed sources in Ministry of Water and Power told ‘The News’ that Lesco’s board was all set to appoint a new chief executive officer (CEO) for the distribution company as the selection process has already been completed and a mandatory nod from the ministry was being awaited. The Lahore High Court (LHC) has also passed an order in this regard, documents reveal.
The sources added that the directors of the Lesco board, who are being replaced, were reform oriented and certain measures were being taken to control the line losses as electronic meters and electronic billing was being introduced.
Spokesman for Ministry of Water and Power, M Tanvir, while commenting on the issue said when the government was taking board members from the private sector, there remained no room for speculation that they would be under ministry’s control. He said that the board members are changed after three years and the ministry had proposed the replacement of board members. Tanvir was of the view when the boards of distribution companies were changed, it was done through Cabinet Committee on Restructuring but was not sure that the replacement of the board members were also to be done through the Cabinet Committee on Restructuring.
On the other hand, when approached by ‘The News’ for his comments, Chairman Lesco board Ahmad Rafay Alam said that Lesco board was appointed by the PM through a selection process that involved the input of Cabinet Committee on Restructuring, consisting of deputy chairman of the Planning Commission, Finance Minister, Minister for Petroleum and Natural Resources and the Minister for Water and Power. As far as cabinet committee is concerned, the appointments of the board were part of a policy to restructure the power sector and the Ministry of Water and Power is only the executing ministry, the chairman held.
The summary sent by the Ministry of Water and Power to the PM dated January 03, 2013 did mention Cabinet Committee on Restructuring (CCOR) but proposed replacement of directors of the board by-passing the CCOR. The summary says, “The prime minister is pleased to constitute a Cabinet Committee on Restructuring (CCOR) of public Sector (SPEs) under the chairmanship of Minister for Finance in January, 2010 aiming to revamp and restructure these enterprises.
The cabinet, in its meeting of 10th March, 2010, approved a roadmap on the recommendations of CCOR which, inter alia, stipulated re-organisation of the Board of Directors (BoDs) of the identified PSEs including Pepco. The BoDs were required to observe the performance and business of DISCOs and put some appropriate piece of advice to the DISCOs to run their business. Presently, there are nine (9) BoDs of DISCOs duly constituted by CCOR, working under Ministry of Water and Power. CCOR conveyed reconstitution of Board of Directors of Lesco through Economic Reforms Unit (ERU) wing of Finance Division vide letter No. Mp.22-DS (ERO-II)/2011 dated 03-02-2011.
The existing composition of BOD Lesco is as follows: (i) Ahmad Rafay Alam, Advocate, High Court - Chairman of the Board. (ii) Mian Ijaz Gohar, Chairman Aptma. (iii) Prof Jamshed Hasan Khan, ‘Associate Dean, Executive Education of Production 86 Operations Management and Computer Applications at SDCB. (iv) Javed Hussain, Ex-MD, SSGC, SNGPL (v) President of the Lahore Chamber of Commerce & Industries (vi) Kamran Arshad, MD, Gulf Shipping Maritime Establishment - UAE. (vii) Muhammad Zakria Butt, businessman. (viii) Faisal Naqvi, Lawyer. (ix) Dr Khawar Daha, Doctor (Civil Society) (x) Zarine Aziz, former president, First Women Bank Ltd. (xi) Zahid Zaman, Citizen Action Forum (xii) Fazal Ahmad Khan, Ex-Member (Power) Wapda. (xiii) CEO, Lesco. (xiv) Joint Secretary (Power) Ministry of Water and Power. (xv) Representative of CCOR. (xvi) Iftikhar-ul-Haq, Privatization Commission.
In order to further improve the working of Lesco, reconstitution of the BOD Lesco is proposed. From the existing members enlisted at Para2/N following may be replaced/substituted. (i) Ahmad Rafay Alarn, Advocate - Chairman of the Board. (ii) Mian ljaz Gohar, Chairman APTMA (iii) Prof Jamshed Hasan Khan, Associate Dean, Executive Education of Production and Operations Management and Computer Applications at SDCB. (iv) Javed Hussain, Ex-MD, SSGC, SNGPL (v) President of the Lahore Chamber of Commerce & Industries. (vi) Dr Khawar Daha, Doctor (Civil Society) (vii) Iftikhar-ul-Haq, Privatisation Commission.
The following may be nominated as directors of BoD Lesco. (i) Pervaiz Ashraf (ii) Kamran Arshad (iii) Mian Tariq Rahman (iv) Moeed Yousaf (v) Muhammad Zakria Butt (vi) Ashraf Bhatti (vii) Tahir Khalique (viii) Tanvir Ahmad Khan (ix) Tanvir Tariq (x) Umair Siddique and Joint Secretary MoWP.”
