Cabinet rejects ECC decision in IT firm case

Observes violation of Rules of Business by economic decision-making body

ISLAMABAD:

The cabinet has shot down a decision of the Economic Coordination Committee (ECC) on the withdrawal of a case against IT company LMKR as it noted gross violation of Rules of Business by the economic decision-making body in the matter.

Sources told The Express Tribune that the Ministry of Information Technology and Telecommunication had submitted the ECC’s decision about the withdrawal of an FIR against LMKR to the cabinet for ratification in its recent meeting.

However, during discussion on the report of a committee constituted by the ECC to review the litigation between the IT Division and LMKR, the recommendation to withdraw the FIR was questioned.

It was argued that once a criminal case had been registered, it was the Federal Investigation Agency’s (FIA) responsibility to fully probe any wrongdoing. It was also inquired under which rule of the Rules of Business 1973, the present case was brought to the ECC.

The adviser to prime minister on institutional reforms and austerity, as head of the committee, said litigation with LMKR had stymied the process of implementing the e-governance programme. Thus, the ECC constituted the committee for recommending an amicable solution to the issue.

The FIA director general was part of the deliberations, which recommended withdrawal of the FIR subject to completion of pending tasks by LMKR. The cabinet took serious notice of non-adherence with the provisions.

The cabinet observed that cases were being submitted without referring to the relevant clause of Rule 16 of the Rules of Business, which clearly defined the nature of cases to be submitted to the cabinet. Non-compliance with the timelines and disregard for stakeholder consultation were also reviewed.

The Cabinet Division solicited ratification of the cabinet of the decision taken by the ECC in the above case, in terms of Rule 17(1) of the Rules of Business.

However, the cabinet did not ratify the ECC decision relating to withdrawal of the FIR against LMKR and directed the IT ministry to deal with the issue on its own keeping in view all the rules and regulations.

The IT ministry revealed that the Institutional Reforms Cell (Cabinet Division), Prime Minister’s Office, Islamabad had forwarded a report on the above mentioned subject, stating that the adviser to the prime minister on institutional reforms desired that the IT ministry may prepare a summary on the subject and place it before the ECC.

The matter was raised by an ECC member in its meeting held on January 29, 2020. The chairman constituted a sub-committee, headed by the PM adviser, to look into the matter and find an amicable solution to the legal conflict between the IT ministry and LMKR/LMKT.

The ministry revealed that in the sub-committee meetings, the FIA DG said only one FIR was registered pertaining to a Capital Development Authority (CDA) project.

He stressed that in view of the completion of the task, they would act on the instruction for the withdrawal of the FIR from the government.

“Settlement agreement signed between the CEO NITB, Member (Finance), CDA, proprietor of LMKT (Private) Limited and LMKR Pakistan (Private) Limited requires that the e-office latest version will be delivered in two weeks’ time after issuance of directions of withdrawal of the case to the ministry and FIA, whereas rest of the five modules will be delivered as per an addendum to the master agreement under the e-office project.”

Clause 4 of the settlement agreement provides that the remaining work of the CDA project will be completed for which NITB will have to activate a PSDP project titled “E-Services at CDA” and ensure availability of requisite funds. This will require instructions of the government to the Ministry of Planning.

The IT ministry submitted the recommendations to the ECC for consideration and approval which included (i) to seek approval from the cabinet to direct MolT and FIA for withdrawal of the complaint/FIR against LMKR, Atif Rais Khan as well as withdrawal of all inquiries by FIA in the projects of LMKR subject to the fulfillment of clauses of the agreement and both actions will be taken, simultaneously.

The ECC considered the summary dated July 7, 2020, submitted by the IT ministry regarding report of the committee constituted by the ECC on litigation between MoIT and LMKR, and approved the proposal.

“The ECC initiated and approved it. The cabinet, in its written decision, asked the ministry to quickly dispose of the matter at its level under the rules,” IT ministry secretary told The Express Tribune.

Published in The Express Tribune, August 4^th, 2020.

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