ISLAMABAD: In a glaring case of financial largesse at public expense, the chief executive officer (CEO) of a state-owned enterprise (SOE), with the approval of his board, drew over Rs355 million in benefits over 32 months.
All of this was done “legally” by using the board’s “independent” powers, which showed no restraint in granting the CEO unparalleled perks despite his fixed monthly salary being capped at Rs500,000. The SOE is a financial services firm related to the field of insurance.
Official sources confided to The News that the government has found this “unprecedented case” involving the CEO of an economic ministry-affiliated SOE.
Details as shared with this correspondent show that the CEO was appointed in 2022 by the federal government in Special Professional Pay Scale III at a fixed monthly remuneration of Rs500,000. A day after his appointment, the very board which recommended him for appointment at such remuneration, granted him massive allowances, benefits, perks and fixed bonuses (Rs56.3 million) in addition to performance bonuses (Rs27.5 million) resulting in monetary benefits exceeding Rs355 million in a span of 32 months. A year later, in view of the powers conferred by the SOE Act, the same board again enhanced the remuneration of the CEO by Rs1.9 million per month with a total financial impact of approximately Rs52 million out of which Rs18 million were drawn retrospectively for the period Jan 2023 to October 2023.
On his last day in office in April 2025, the CEO paid himself a sum of Rs52.3 million without sanction of the board. This included a severance pay of Rs28.8 million despite the fact that he resigned from the post as he decided to join another government owned company.
He also drew leave fare assistance of Rs2.4 million and a gratuity of Rs17.7 million the same day. In addition, a sum of Rs11 million was drawn as car monetization allowance though the CEO continued to enjoy multiple company maintained vehicles. Besides, leave encashment and leave fare assistance of Rs9.8 million, directors fee of Rs9.35 million and more than Rs31 million on account of fuel, child education, training, club membership, entertainment, utilities, medical and other benefits were also drawn by him.
During his two and a half years stint, the CEO undertook 23 foreign visits to various destinations including UAE, UK, Germany, Singapore, Australia, Azerbaijan, Malaysia, Hungary, Kazakhstan, Qatar and KSA. The visits cost the company Rs58.6 million, though the scope of operations of the SOE business does not justify most of these visits, the sources said. The episode, according to the sources, has shook them amid growing fears what would have been happening in other SOEs. The sources said that the SOE Act, 2023 instead of improving the governance framework has made the SOEs vulnerable to abuse of authority by the managements with support and collaboration of independent directors from the private sector.
