ISLAMABAD: A panel of the Public Accounts Committee (PAC) on Tuesday questioned the appointment of Asad Khan as the managing director of National Engineering Services Pakistan (Nespak), a state-owned engineering consultancy firm, and also observed that the MD had irregularly promoted personnel in the organisation in violation of laid down procedures. Committee members also took exception to Khan’s attempts to influence them through various channels.
The PAC subcommittee, however, reserved its verdict on the illegal appointment of the MD and out-of-turn promotions in Nespak, while seeking greater help from authorities to ascertain more facts regarding the issue.
Asad Khan was appointed Nespak MD in April 2008 by then prime minister Yousaf Raza Gilani, on the recommendation of then water and power minister Raja Pervez Ashraf. Khan has already managed to secure an extension in his tenure.
The issue of the allegedly illegal appointment and promotions has surfaced at a time when the Supreme Court of Pakistan has taken up a case regarding the appointment of Tauqeer Sadiq, the former chairman of the Oil and Gas Regulatory Authority.
The Pakistan Engineering Council (PEC) had objected to the appointment of Khan, and had raised the issue with Gilani in 2010. The PEC had been against the appointment as Asad Khan is an architect by profession, and does not have a strong engineering background.
PAC member Sardar Ayaz Sadiq revealed that the National Accountability Bureau (NAB) was holding an inquiry into the appointment of the MD. The subcommittee also decided to seek legal opinion from Supreme Court Bar Association President Yaseen Azad, on whether an architect can be appointed as the head of an engineering body.
The PAC panel – headed by Yasmeen Rehman – also hinted at revoking all benefits enjoyed by those who were promoted out of turn by Khan. The illegal appointments will land all concerned persons in trouble, the PAC subcommittee chairperson said.
Any adverse decision is likely to open a can of worms, as an official of the Ministry of Water and Power – the parent ministry of Nespak – conceded that the MD had used the powers of the ministry secretary while short-listing aspirants for the posts of the vice presidents of Nespak.
The MD allegedly promoted his favoured personnel through a board of management (BoM) constituted by him. He confessed that the BoM had no legal status per se, as every successive MD reconstituted the BoM according to his will.
The subcommittee then sought details on BoM constitution, BoM rules for promotion, and the criteria employed in promoting people to the posts of the vice presidents. The panel decided to summon NAB officials and the secretaries of concerned ministries to decide on the matter.
In his defence, Khan claimed that the appointment of the vice presidents was at the discretion of the MD. He further said that that the assertion that his appointment was illegal did not hold ground as he had been appointed by the prime minister himself.
In reply, the committee observed that according to the rules, the vice presidents can only be appointed after consultation with the secretary and the minister of water and power. The representative of the water and power ministry also endorsed the committee’s view that the MD cannot constitute a board to get people appointed according to his own will.
An audit official told the PAC panel that instances of irregular promotion in Nespak had been brought to its notice. In response, the panel sought an explanation from the audit department why it had overlooked such glaring irregularities.
Statistics tabled in front of the panel also revealed loose financial control in Nespak. According to the audit official, the total income of Nespak was Rs3.4 billion in 2007-08, against Rs2.5 billion general expenses, which were 73% of income. Expenses subsequently increased to 75% and 80% of the income in 2008-09 and 2009-10 respectively, according to the figures provided.
Published in The Express Tribune, October 17th, 2012.
COMMENTS (7)
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@KHURRAM SHAHID: It is unfortunate that you should jump to such conclusions on a mere reporting which to a large extent is exaggerated and misleading. In any case I don't need to clarify my position because any one who knows me, will know how far away from truth the whole story is. I would never have seen this had my son not informed me about it. Hence my brief comment on how wrong you are and a piece of advice given above. It seems that the comments made by others are people I may know or who may know me. A very complimentary check on my profile by some agencies said, which was communicated to me, found my record as " crystal clear " !!! I need not say more. Cheers to you.
I think this is propaganda against Asad I A Khan and person behind this is Mr. Amjad Khan Vice President of HR/M&IT. He has a problem with current MD. He is also approaching Minister Water and Power and Prime minister for getting promotion to next MD. and i also agree with the statement of Mr. Ahmed Zafar. Mr. Asad I Khan is honest and loyal gentelman. We pray for his longlife and future
Asad khan is one of the most honest men working in the government today. Nespak is a company that generates its own money and is governed by its own policies. How can any mna or committee question it? It's is not the publics money. Secondly it is no where written an architect cannot be an md of nespak. Thirdly I'm pretty sure he refused to promote people reccomended by government officials. Thus he is facing this. An honest man cannot survive in this country
this person should be forthwith removed from the slot, as he may interfere in the investigations being carried out against him. Also his assets should be asssesed , if they have increased proportional to his income.
It is very sad that the PAC is hurting the reputation of the governments most premier institution.