SBP governor’s appointment case: 23 senators moved IHC for early hearing

ISLAMABAD: 23 senators here on Saturday moved an early hearing application before the Islamabad High Court (IHC), in an already pending petition where they challenged the appointment of SBP Governor M Tariq Bajwa that was made on July 7, 2017.

Justice Miangul Hassan Aurangzeb of the IHC on November 6, 2017, had issued notices to the Ministry of Finance’s secretary and State Bank of Pakistan (SBP) governor seeking their reply in one month time.

Petitioner senators from the opposition parties have contended in the early hearing application that the IHC bench on November 6 had directed the respondents to submit reply within one month. Now it is over two months elapsed, but the respondents did not submit reply.

Petitioners, through their counsel, Sardar Lateef Khosa, has prayed to the court to early fix this application to ensure justice.

Twenty-three senators, belonging to opposition parties, have challenged the appointment of Tariq Bajwa as SBP governor while saying that it is a very important issue and needs consideration of this court.

PPPP, ANP, MQM and PTI senators challenged the appointment while saying that no proper and objective selection criteria was adopted for the said appointment, and it was made in violation of the Supreme Court judgements.

It is third such a petition in the IHC where opposition senators jointly filed a petition raising a particular question. First, they challenged some provisions of money bill 2017 and second, appointment of the chief executive officer of the Pakistan International Airlines.

Petitioners have raised questions: was Tariq Bajwa appointed in an open and transparent manner; was the post advertised, if yes how many candidates applied for the post, what was the objective criteria for appointment, was there a selection board or committee and was a summary in terms of rules of business put up before the cabinet and approved?

Petitioners alleged that the appointment has been made in violation of the dictum laid down by the apex court in the case of Mustafa Impex vs Government of Pakistan.

Petitioners included senator Taj Haider, Leader of House in Senate for Pakistan People’s Party Parliamentarians (PPPP), Islamuddin Sheikh, Farhatullah Babar, Karim Ahmed Khwaja, Sassi Palijo, Sehar Kamran, Saeedul Hassan, Liaqut Khan, M Yousaf Baloch, Hari Ram, Khalida Perveen, Ahmed Hassan, Gian Chand, Murtaza Wahab, Azam Swati, Tahir Hussain Mashadi, Nauman Wazir, Khushbakht Shujat, Baz M Khan, Nighat Mirza, Farooq H Naek, Saleem Mandviwala and Ilyas Bilour.

They cited the Government of Pakistan, through secretary, Finance Division internal finance Wing and SBP governor M Tariq Bajwa as respondents. They further contended in the petition that as per Section 10(1) of the SBP Act, Governor is chief executive officer (CEO) and on behalf of the board of directors control whole affairs of the Bank. The governor is also the Board of Directors chairman as per Section 9(3) of the SBP Act.

For appointment of employees and all other matters, SBP governor is the competent authority. That, though no criteria for the appointment of SBP governor is prescribed in SBP Act, but, under Section 9(A), it requires educational qualification, practical knowledge, competence and experience in Banking, Finance, monetary policies, economics especially in the areas of money supply, credit, balance of payment and price development management. Furthermore, it is also included in the duties of the SBP governor to prepare and oversee reports related to economic growth, fiscal monetary, external accounts, foreign exchange reserve management and approve strategic investments and risk policy.

The SBP Act envisages a professionally efficient system. It provides experience and qualification for the SBP governor. Senators alleged that the PML-N government has all along indulged in ruthless violation of legal requirements and procedures in making appointments and filling vacancies in all the key positions of state departments and institutions. Such methodology was adopted to use them for their personal benefits, self aggrandisement and extract illegal works, petitioners contended in the petition. The head of the Securities & Exchange Commission of Pakistan is an example which under the Supreme Court orders is behind the bars facing criminal charges.

Petitioners contended in the petition that the appointment of SBP governor is illegal, unjustified, void ab inito, arbitrary, without lawful authority and colourful exercise. Petitioners said that the senators from opposition parties had moved a combined resolution in the Senate for the removal of SBP governor while saying that the governor may be removed immediately as his appointment violates Section 10A of the SBP Act.

The Finance Ministry, in response to the resolution, filed its reply that said that no violation of the SBP Act was made. Bajwa was appointed after he reached superannuation and in the past several bankers, civil servants, economists and chartered accountants were appointed SBP governor post retirement. However the petitioners alleged that the appointment was made in a non-transparent manner.

Petitioners prayed to the court to set aside the appointment notification of SBP governor, immediately stop him from functioning and recover all emoluments/facilities/benefits he took. They further prayed that the federal government may be direct to appoint new governor following law and procedure.