DGTO revokes solar association licence

Accuses association of committing irregularities, violation of rules


Zafar Bhutta March 16, 2024

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ISLAMABAD:

The director general of trade organisations (DGTO), which works under the Ministry of Commerce, has revoked the licence of Pakistan Solar Association (PSA), allegedly because of its involvement in irregularities and gross violation of rules.

In an order, the DGTO barred key PSA members from taking membership of any other trade organisation as well as imposed a fine.

Officials working in the solar industry welcomed the DGTO’s decision, saying the PSA had “hijacked the entire industry”.

According to the DGTO, the current executive committee of the PSA has been found complicit and well aware of the illegal management of the affairs at the association by the “fake and bogus” secretary general.

The executive committee deliberately kept the information concealed from the regulator of trade organisations. “Therefore, it has been found in violation of the law.”

“Hence, the membership of all the executive committee members of PSA is hereby cancelled, exercising the powers conferred under Rule 11(3) of the ToRs (Terms of Reference), 2013,” the regulator said, adding that they were barred from taking membership of any trade organisation for a period of five years.

The DGTO also withdrew the conditional renewal of the licence of the association by the then regulator as the PSA failed to meet renewal conditions within the stipulated time period despite multiple reminders.

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“By virtue of the withdrawal of the licence renewal, the PSA stands expired with immediate effect,” read the order.

It cancelled the membership of human resources committee members. They were also barred from membership of any trade organisation for a period of five years for appointing the secretary general against the laid-down procedure in the ToRs, 2013.

“Recommendation is hereby made to the federal government to cancel the licence of the defunct, expired and non-compliant,” said the regulator.

The regulator’s action came after the receipt of several complaints against the association. Following a reply from the PSA, a hearing was scheduled for October 10, 2023 to determine truth.

Secretary General Mohsin Shaukat did not turn up at several hearings and he finally appeared before the regulator on February 29, 2024. However, he failed to show any bank account through which he received his salary from the PSA.

During the course of the inquiry, it was established that the secretary general was a “dummy”. An inquiry committee noted that the “fake” secretary general was a direct shareholder in the affairs of the PSA.

He was also part of the management that was deemed a serious conflict of interest.

When contacted for comments, Mohsin Shaukat said that PSA’s lawyer was working on it and would share the verdict accordingly.

During the course of investigation, when inquiry committee members reached the PSA office during working hours, they found the office closed.

On a telephonic call, PSA chairman himself came and opened the office, which otherwise should have remained open for members and stakeholders.

The chairman was asked to produce documents related to Rule 22 of ToRs, which was a mandatory requirement of the law. However, he failed to provide such documents.

The association also failed to submit annual reporting requirements to the DGTO office for the year 2023 including the financial statements prepared by auditors and approved by the executive committee.

It could not submit the plan of activities for next year and a soft and hard copy of the list of its members as on November 30, 2023.

The inquiry committee, after returning to its office in Islamabad, examined the records and found a large number of irregularities.

Published in The Express Tribune, March 16th, 2024.

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