SECP ex-chief Hijazi receives Rs11.5 million of terminal benefits

ISLAMABAD: The suspended chairman of the Securities and Exchange Commission of Pakistan (SECP), Zafar Hijazi had received Rs11.5 million as final settlement of terminal benefits on completion of three-year term, government audit revealed.

Auditor General of Pakistan’s report raised objections on the payment of Rs7.733 million as terminal benefit and Rs 2.7 million as fixed bonus and Rs 100,000 annual increment to the suspended chairman.

The audit report said grant of fixed bonus and annual increment, terminal benefits and bonus was ‘irregular and unauthorised’ as the official was ‘under suspension and under trial in court of law’.

The government suspended Hijazi on July 7, 2017.

Audit observed that the amount of Rs7.733 million as terminal benefit and Rs 2.7 million as fixed bonus paid to the suspended chairman as final settlement without acquittal of the charges and reinstating in service.

“Criminal case against the chairman was in the court of law but the commission as per rule did not withhold,” it added.

Audit is of the view that the payment of terminal benefits without acquittal and reinstatement of the employees was irregular and unauthorized.

The SECP’s management in its response stated that the commission in its meeting held on December 21, 2017 considered the entitlement of his terminal benefits on completion of tenure of Hijazi and “in view of status/position in this case i.e. suspension decided that HR department may seek external legal opinion in the matter of payment of terminal benefits to Hijazi”.

The HR department obtained the legal opinion from legal consultants. The external legal opinion was shared with the ministry of finance for advice.

“On approval of ministry of finance, the commission on March 1, 2018 granted approval to release payment benefits to Zafar Hijazi,” it added.

AGP stated that the reply was not acceptable because as per SECP human resources manual, “the commission may withheld pay to employees accused of criminal offense”.

“Criminal proceedings are not concluded and the accused is not acquitted from the charges, payment of terminal benefits was irregular and undue benefit.”

The SECP’s Human Resource Manual 2015 states that in case an employee placed under suspension is honorably acquitted of the charges by the Commission, he/she shall be reinstated in service and his period of suspension, will be regularized by treating the period of suspension as duty for all purposes.

The employee under suspension for the provisions of this sub- clause shall be entitled to pay, allowances and other benefits as admissible to him on duty. However, the audit report mentioned, the commission may decide to withheld pay to an employee accused of any gross misconduct/ criminal offence especially in cases where such an employee is absconder/absent from duty.