Cabinet likely to cut private sector’s role in Utility Stores’ board
Ministry insists step will lead to quick decision-making, improve USC’s finances
The government official claimed that since the board’s expansion, many issues had emerged that prevented USC from functioning smoothly and without hurdles. PHOTO: FILE
ISLAMABAD:
The cabinet is likely to restructure the board of directors of Utility Stores Corporation (USC), which has recorded losses of billions of rupees, as the government wants to drastically curtail the role of private sector for swift decision-making and improving the organisation’s financial health.
Under a proposed plan, the Federal Investigation Agency (FIA) may also be represented on the USC’s new board of directors.
Talking to The Express Tribune, a senior government official pointed out that in the present set-up, the number of private-sector members had been increased in the board of USC, which caters to the needs of poor consumers by providing them essential commodities at discounted prices.
He said the Ministry of Industries and Production and the USC management suggested that the role of private sector should be reduced in the USC board for taking quick decisions and bringing improvement in its financial affairs. In that regard, the ministry has sent a summary to the federal cabinet for its consideration.
Before the enactment of Public Sector Companies (Corporate Governance) Rules 2013, the USC board had seven members and it was chaired by the industries and production secretary. There was no representation from the private sector.
However, after the promulgation of corporate governance rules, the board of directors was reconstituted on April 3, 2014 and further expanded on July 16, 2015.
The number of directors went up from seven to 15 with 11 independent directors from the private sector and four from the public sector.
The government official claimed that since the board’s expansion, many issues had emerged that prevented USC from functioning smoothly and without hurdles.
In meetings held between the Ministry of Industries and the USC management, they were of the view that it would be better to reduce the size of the USC board in line with the amended Public Sector Companies (Corporate Governance) Rules 2013.
They emphasised that a relatively smaller size of the board would be suitable for quick decision-making and would also result in reduced expenditures on meetings.
In the ministry’s summary, it has been proposed that the industries and production secretary should be the USC board chairman and two other officials from the Ministry of Industries and the USC managing director should be members of the board.
From the private sector, only two members will be part of the board instead of the existing 11 members.
The FIA director general or his nominee will be co-opted onto the board as and when required. Muhammad Naeem Khan Achakzai from Balochistan and Haroon Waheed from Punjab have been proposed to be included in the new board of directors.
Published in The Express Tribune, January 17th, 2018.
The cabinet is likely to restructure the board of directors of Utility Stores Corporation (USC), which has recorded losses of billions of rupees, as the government wants to drastically curtail the role of private sector for swift decision-making and improving the organisation’s financial health.
Under a proposed plan, the Federal Investigation Agency (FIA) may also be represented on the USC’s new board of directors.
Talking to The Express Tribune, a senior government official pointed out that in the present set-up, the number of private-sector members had been increased in the board of USC, which caters to the needs of poor consumers by providing them essential commodities at discounted prices.
He said the Ministry of Industries and Production and the USC management suggested that the role of private sector should be reduced in the USC board for taking quick decisions and bringing improvement in its financial affairs. In that regard, the ministry has sent a summary to the federal cabinet for its consideration.
Before the enactment of Public Sector Companies (Corporate Governance) Rules 2013, the USC board had seven members and it was chaired by the industries and production secretary. There was no representation from the private sector.
However, after the promulgation of corporate governance rules, the board of directors was reconstituted on April 3, 2014 and further expanded on July 16, 2015.
The number of directors went up from seven to 15 with 11 independent directors from the private sector and four from the public sector.
The government official claimed that since the board’s expansion, many issues had emerged that prevented USC from functioning smoothly and without hurdles.
In meetings held between the Ministry of Industries and the USC management, they were of the view that it would be better to reduce the size of the USC board in line with the amended Public Sector Companies (Corporate Governance) Rules 2013.
They emphasised that a relatively smaller size of the board would be suitable for quick decision-making and would also result in reduced expenditures on meetings.
In the ministry’s summary, it has been proposed that the industries and production secretary should be the USC board chairman and two other officials from the Ministry of Industries and the USC managing director should be members of the board.
From the private sector, only two members will be part of the board instead of the existing 11 members.
The FIA director general or his nominee will be co-opted onto the board as and when required. Muhammad Naeem Khan Achakzai from Balochistan and Haroon Waheed from Punjab have been proposed to be included in the new board of directors.
Published in The Express Tribune, January 17th, 2018.