‘Illegal’ payment to contractor : Corruption reference against LWMC officer recommended

LAHORE:A legal committee of Board of Directors of Lahore Waste Management Company (LWMC) has recommended the company’s management to send a reference to Anti-Corruption Department against the company’s chief financial officer (CFO) for allegedly making illegal payment to a co-contractor.

Documents available with The News revealed that a complaint of an alleged illegal payment to a contractor by the CFO was presented in the 134th meeting of BoD held on January 6 on which the BoD referred the complaint to its legal committee.

The meeting of the legal committee held on January 11 was headed by Muhammad Safdar Shaheen Pirzada Convener/Member, Syed Raees-ud-din Ahmed (Member), Abdul Karim Khan (Member), Muhammad Tariq Munir (Company Secretary, LWMC), Hasan Hameed Bhatti Manager (Legal), Dr Kamran Nasir General Manager (P&P) and Azhar Mahmood (Lead Partner MKEC-AHC JV).

The agenda of the meeting included “deliberation and advice regarding alleged payment illegally made in violation of settled terms and conditions of MKEC-AHC JV.”

As per the documents, the committee was apprised that the agenda was presented in the 134" BoD meeting held on January 6 and the matter was referred to the legal committee and authorised them to deliberate and advise the necessary legal action against a payment illegally made in violation of settled terms and conditions of MKEC— AHC JV by finance department LWMC.

It is pertinent to mention here that despite having the knowledge of this meeting the CFO LWMC did not appear before the committee neither any of his representative attended the committee for providing general assistance and even the finance department did not provide the record for inspection.

The documents revealed that the Committee was apprised by Syed Raees-ud-din Ahmed that under clause 6.1 of the Special Conditions of Contract (SCC) executed by and between LWMC and MKEC-AHC JV, the finance department of LWMC was bound & restricted to make all payments only in the account on the name of Lead Partner of the said JV and no deviation of any sort was permissible in this regard.

“However, admittedly, some payments had been made violating the settled terms & conditions of the said agreements. The said act of payments against the settled terms and conditions of the said contract was illegal, unlawful, without jurisdiction and authority, and this act is also against the public interest because LWMC is a Public-Sector Company operating with the Public Money,” the committee observed and added that to safeguard and protect the interest of public at large and national exchequer criminal action was a must for this material violation of contract.

Documents revealed that the complainant Azhar Mahmood (COO) of MKEC and Zeeshan (CFO) MKEC were specially invited to attend the meeting. The committee asked Azhar Mahmood that whether the undertaking submitted to the LWMC’s CFO for payment was signed by him or not?

Azhar Mahmood replied that he did not know about any undertaking submitted to the CFO LWMC and his payments were still pending with LWMC as per details submitted to the Committee.

After listening to the applicant, the committee advised the top management of LWMC to send a reference to the Anti-Corruption Department for initiation of proceedings as per law, rules and regulations. The committee also advised the LWMC’s management to restrain the LWMC CFO from work till finalisation of this case.

Convener of the committee Muhammad Safdar Shaheen Pirzada also recommended that departmental action must be initiated under relevant provision of law and policy. “Recovery of the unauthorised paid amount must be initiated without any procrastination & update to the Legal Committee,” he directed.

The committee instructed to the Finance Department to release the payments of the acknowledged work of the MKEC— AHC JV (to the Lead partner) on priority. The committee further advised the LWMC’s management to restrain the company’s CFO from work till finalisation of this case. When contacted, the LWMC CEO said he will talk with The News on this issue next week. However, the company’s spokesperson while talking with The News said that all payments were released as per legal requirements. He claimed no illegality was made in making payments.