Govt sacks EPZA chairman

Group of 84 investors levelled charges of omission and commission

ISLAMABAD:

The government has sacked Export Processing Zones Authority (EPZA) Chairman Shafqatur Rehman Ranjha with immediate effect following charges of omission and commission levelled by a group of 84 investors.

The Industries and Production Division informed the cabinet that EPZA was established under the EPZA Ordinance 1980 with the mandate to plan, develop and operate Export Processing Zones (EPZs) in Pakistan.

EPZA is an autonomous body working under the Ministry of Industries and Production. EPZA is mandated to set up EPZs in Pakistan under Section 2(k) of the ordinance.

EPZA is a Pakistan government venture designed to increase and improve exports of the country. Its main objectives are to accelerate the pace of industrialisation and enhance the volume of exports by creating an enabling environment for investors to initiate ambitious export-oriented projects in the zones, which would create job opportunities, bring new technology and attract foreign investment.

Section 6(1) and 2 of the EPZA Ordinance stipulated that the chairman and members of the authority would be appointed by the federal government.

The vacant post of EPZA chairman was advertised through print media on July 7, 2019. In response, applications were received and five candidates were shortlisted for interview by a selection committee as per instructions of the Establishment Division. A panel of three candidates was then referred to the cabinet for appointment of one of them as the EPZA chairman. Ranjha was appointed chairman with approval of the cabinet in MP-1 scale in February 2020.

Later, various verbal and written complaints were made by investors to the industries ministry, alleging that the chairman and the authority management were creating hurdles in the way of smooth functioning of industrial units established in the EPZs.

Eighty-four investors submitted written complaints to Minister for Industries and Production Hammad Azhar. A reference was also received from the Prime Minister’s Office for views and comments on the problems faced by the EPZ investors.

Consequently, a meeting was convened under the chairmanship of Industries Division secretary to discuss the issues with the chairman on November 25 and 26, 2020.

It was observed that the EPZA chairman had failed to resolve problems of investors due to non-adherence to rules and procedures and lack of control over management, which was reflected in the acts of omission and commission.

The investors alleged that EPZA had ceased the development of phase-III of Karachi Export Processing Zone (KEPZ), resulting in a loss of huge investment made by the businessmen. Responding to that, the chairman argued that the board of directors had approved the scrapping of KEPZ phase-III project.

However, an examination of the board decision showed that the project had not been scrapped and the board had just noted procedural irregularities in the zone and had asked EPZA management to redo it according to the proper procedure.

The chairman also allegedly increased the ground rent from 35 cents to 70 cents per square foot and thereafter reduced it to 50 cents vide a circular dated November 9, 2020. As per investors’ complaints, the said letters were issued without authorisation by the board and without consulting the investors.

After examination of the record, it transpired that there had been no board of directors’ decision in that regard.

On inquiry, the chairman admitted that the management kept issuing letters without his approval. On the other hand, during the meeting, many letters issued by the management were shown to the chairman, which included the part issued with approval of the chairman.

There had also been increasing reports of dumping of industrial waste by factories both in the common area as well as inside the factories, which was hazardous to health. Fire incidents also increased in the past few months without timely addressing them by the EPZA management.

The Ministry of Industries recommended the termination of services of Ranjha with immediate effect with payment of one-month basic pay. Furthermore, the additional charge of EPZA chairman may be given to Rizwan Ahmed Bhatti, who is the Pakistan Industrial Development Corporation (PIDC) CEO, for three months and in the meantime the process of regular recruitment will be initiated.

The cabinet considered the summary titled “Termination of services of Shafqatur Rehman Ranjha, Chairman Export Processing Zones Authority”, submitted by the Industries and Production Division, and approved the proposal to terminate his services with immediate effect and payment of one-month basic pay.

The cabinet also directed that the additional charge of EPZA chairman may be assigned to Bhatti and in the meantime the process of regular recruitment be initiated by the Ministry of Industries at the earliest.

Queries were sent to an EPZA official for comment, but he did not respond.

Published in The Express Tribune, December 8^th, 2020.

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