For Tareen, a jet for political use, household staff as directors

Published: November 23, 2012
Email
When contacted for comment, Tareen denies that the jet was ever used for political purposes. PHOTO: APP/ FILE

When contacted for comment, Tareen denies that the jet was ever used for political purposes. PHOTO: APP/ FILE

LAHORE: 

The Pakistan Tehreek-e-Insaf has bragged about its technocratic duo of Jahangir Tareen and Asad Umar as competent managers with private sector experience who are ready to lead the economy. Yet, new information about corporate governance practices at JDW Sugar, where Tareen is CEO, are beginning to cast doubts over that image of competence on at least one half of that duo.

The Express Tribune has learnt that Tareen has often used company property – especially the corporate jet – for personal and political campaigning purposes, and managed to escape fiduciary scrutiny by appointing figureheads, including some of his own personal household staff, as members of the board of directors of the company.

JDW Sugar Mills is the largest and most profitable sugar manufacturer in the country, and is a publicly listed company, with shares traded on the Karachi Stock Exchange. For the financial year ending September 30, 2011, the company had gross revenues of nearly Rs26.5 billion and a net income of Rs1.3 billion.

Tareen’s political opponents in the Pakistan Muslim League-Nawaz, however, allege that the billionaire businessman-turned-politician has been using the corporate jet for political purposes, flying fellow members of the PTI around the country at the expense of a company in which Tareen and his son own only a combined 42.1%, with the remainder owned by institutional investors and the general public.

When contacted for comment, Tareen denied that the jet was ever used for political purposes, though he did say that he occasionally uses the plane for personal purposes and reimburses the company every six months. He went on to claim that his previous payment to the company for the use of the plane came to Rs15 million. Regardless of whether the plane was used for political purposes, the more serious allegations against Tareen’s management of JDW Sugar is that he has packed the board of directors with personal employees, including some people who do not have the educational or technical qualifications or experience to be able to execute their fiduciary responsibilities to the company’s other shareholders.

A company’s board of directors is meant to regulate the behaviour of its executives. As the largest shareholder, Tareen does have the right to pick the largest number of board members, but he seems to have gone out of his way to pick people who would not ask too many questions on behalf of the minority shareholders.

For instance, a man named Abdul Ghaffar is listed on the board of directors for financial year 2010. He appears to have only a primary school education and serves as a waiter in Tareen’s personal residence in Lahore. When contacted for comment, Abdul Ghaffar said he had no knowledge of owning any shares in the company, let alone attending the 10 board meetings that company records say he did as a member of the board.

Tareen points out that Ghaffar is no longer on the board of directors, but the list for 2011 and 2012 includes the name Muhammad Ismail, who is reportedly a cook in the Tareen personal residence in Lahore. Incidentally, Muhammad Ismail is also listed as a member of the board’s audit committee, which is supposed to scrutinise its financial records.

The JDW Sugar board of directors has eight members. Two are Tareen and his wife. Two others are Tareen’s brother-in-law, Makhdoom Ahmad Mahmood and his wife. Ahmad Mahmood is the second biggest shareholder in JDW Sugar, owning about 19.4% of the company. He is also the chairman of the board.

The other four board members are supposed to represent the minority shareholders in the company, but since none of the other shareholders has more than a 10% share in the company, they do not have the right to nominate directors. As a result, the other four directors are all either personal employees of Tareen, or in the case of Ijaz Ahmed Phulpoto, an old personal friend.

Political fallout

Sources familiar with the matter told The Express Tribune that Ahmed Mahmood, once considered Tareen’s political mentor, has had a falling out with his brother-in-law over differences on how to run the company. Mahmood backed Tareen twice for a seat in the National Assembly from his home constituency in Rahimyar Khan, which some believe Tareen could not have won without Mahmood’s blessing.

Mahmood was reportedly suing Tareen over several of these issues, but the two reportedly reached an amicable settlement earlier this year brokered by mutual friends and financial institutions with stakes in the company, as a result of which Abdul Ghaffar was kicked off the board of directors and replaced by Mahmood’s wife. Mahmood also appears to be getting considerably more compensation as chairman of the board than he was the year before. Nonetheless, Tareen’s appointees still dominate the board of directors.

Published in The Express Tribune, November 23rd, 2012.

Facebook Conversations

Reader Comments (105)

  • Jet Tareen
    Nov 23, 2012 - 4:18AM

    Imran Khan should kick out such corrupt people from his party but then again, who will offer Imran Khan his Jet …Recommend

  • Majid Urrehman
    Nov 23, 2012 - 4:22AM

    Today let’s all pledge, we will die but not let these PTI hypocrites rule us.

    Recommend

  • Ovais
    Nov 23, 2012 - 5:55AM

    Big deal seriously … this is not anything huge.. but its good they are getting scrutinized

    Recommend

  • King of Darkness
    Nov 23, 2012 - 6:07AM

    @Majid Urrehman:
    lolz.. What does this has to do with PTI?. All chairman Imran Khan could do was to ask him to declare his assets and taxes on PTI’s website to set example of transparency for other parties. I mean it was not possible for IK to check that who is who on JDW’s BOD before allowing him to enter the party. Anyways, we should wait for an official reply from JKT, before passing on our judgement and pledges!!..

    Recommend

  • Affan Dawood
    Nov 23, 2012 - 7:01AM

    For me jet is not an issue if Jahangir Tareen pays for it as he is claiming but what matters is the members in BOD . . .JKT paid 4 crores 97 lac tax last year and than this story makes a person laugh . . Jahangir Tareen must answer

    Recommend

  • Zeeshan Khan
    Nov 23, 2012 - 7:02AM

    This is all you could find ? really ? Please start looking under the carpet for just one enterprise run by the sheriff family and you will be surprised and start looking at the above clever man and a great character comparatively.

    Recommend

  • Ahmad Khakwani
    Nov 23, 2012 - 7:04AM

    What a disappointment, PTI had packaged him as “Clean Tareen”. SECP please wake up and do get hold of this. Shereen Mazari was right..Recommend

  • Ahmad Khan
    Nov 23, 2012 - 7:17AM

    Two days ago Gulf Today a UAE Daily, in a story revealed he had being receiving US Funds for his NGO and private mango firm development. He could not deny it. Double speak opposing US policies but at same time getting millions from USAID. Now these corporate skeltons in his cupboard. If these people can abuse authority will doing private business, how can they be trusted with official authority. Please recall he was previously with Shahbaz Sharif, than Perviaz Ellahi, than Minister with Musharaf and Shaukat Aziz, again tried to unsuccessfully cultivate Shahbaz Sharif, and now again trying to hood wink people through PTI. Imran Khan owes it to people to probe this, if the so called proxy or benami directors are illitrate how come they have been shown in record of having attended the BOD meetings, and more so audit committee meetings. It is a corporate fraud, which can land him in jail, had it been a rule or law based society. Remember he is think tank for PTI. He is giving all the PTI policies and manifesto. Please give us a break.

    Recommend

  • Asad
    Nov 23, 2012 - 7:45AM

    Tareen sounds like a novice he should learn from Ittefaq group on how to run a business he won’t even need to pay 4 caror plus taxes and journalists would have only good things to say about him.

    Recommend

  • Saleem
    Nov 23, 2012 - 8:58AM

    Like any other politician, Tareen is in the game for himself. In quest for power, thus money, like other politicians he been jumping parties. What makes me wonder is why Imran Khan has not figure that out. Is he clueless about Tareen and others who flocked to PTI after its successful rally at Lahore, or is looking the other way as he can’t swim alone?

    Recommend

  • Ace
    Nov 23, 2012 - 10:00AM

    LOL. If he had focused that cunning brain of his on properly running the company, his industrial empire would probably have been much bigger by now.

    Also, almost the whole sugar industry in Pakistan is owned by such political big wigs with their own shortcuts to profits and dummy directors, and a probe into each of the sugar mills affairs will reveal a similar or worse picture.

    Recommend

  • Nov 23, 2012 - 10:04AM

    So, the company is public (which means shareholders, not taxpayers) owned, that means it is up to the shareholders to decide the fate of the CEO. This also means the company is not government owned and Tareen is not using tax payer’s money.
    .
    .
    I would however, be interested to hear whether PML-N is paying these researchers who are coming up with this ‘damning’ (read sarcasm) evidence from Punjab Govt. funds or from the party funds.

    Recommend

  • Yusuf
    Nov 23, 2012 - 10:05AM

    JDW is a progressive food company in profit. JDW should expand its role in food sector as the mills are placed well in fertile agricultural region of Pakistan. JDW should capture sizeable market share in food sector and create downstream products related to wide commodities available in the Rahim Yar Khan district. Developing in food product will lead JDW into worldwide export of various new products.

    Recommend

  • Karim
    Nov 23, 2012 - 10:06AM

    *

    As the largest shareholder, Tareen
    does have the right to pick the
    largest number of board members, but
    he seems to have gone out of his way
    to pick people who would not ask too
    many questions on behalf of the
    minority shareholders.

    first half is based on reality while the second half is based on your own assumptions.

    Recommend

  • Asad
    Nov 23, 2012 - 10:07AM

    Vote for PML-N they know how to run sugar mills and not pay taxes.

    Recommend

  • Nov 23, 2012 - 10:09AM

    That’s it? Compared to our sitting politicians, he is clean as a whistle.

    Recommend

  • Hassaan
    Nov 23, 2012 - 10:15AM

    You all above ignorant folks, kindly read Jehangir Tareen’s tweets before you post any stupid comment. Not defending him, just using my common sense here.

    Recommend

  • Ali
    Nov 23, 2012 - 10:18AM

    I am not a PTI supporter , but I know as a fact that JDW Sugar is the most well managed sugar mill compared with all other nearly 70+ Sugar mills owned other political families encompassing PPP , PML (N) , PML(Q) and others. The nearly 17 sugar mills owned by Nawaz Sharif, Shehbaz and their first cousins are considered to be the most ill managed Sugar mills and all the banks are after them due to Loan default, for example Chaudhry Sugar, Ramzan Sugar etc.

    Recommend

  • roadkashehzada
    Nov 23, 2012 - 10:34AM

    @Asad:
    so if tareen is being compared with other politicians, wht happened to claims of being the chosen ones and rest are all infidels?

    Recommend

  • No BS
    Nov 23, 2012 - 10:35AM

    Exellent, lets see if ET can do a similar peice on Ramzan sugar mills of Mian Nawaz Sharif or will ET continue to pick on the easy targets (the only party not in government)

    Recommend

  • Falcon
    Nov 23, 2012 - 10:38AM

    Let’s hope a similar piece gets published for PMLN as well starting with 1260 police men that have been reserved for guarding honorable Sharif brothers and are being funded through public exchequer. Coming to the issue at hand, if this is a publicly traded company and the issue is known in full, why don’t public share holders initiate a proxy fight to deal with the issue? Even in most developed countries and well functioning companies, CEOs have the habit of bringing in BOD members who are least likely to confront them. Lastly, if they are publicly listed, I have to assume that they are audited by public accounting firms. Why wasn’t this issue raised before?

    Recommend

  • Mard-e-Haq
    Nov 23, 2012 - 10:44AM

    Regardless of whether the plane was used for political purposes, the more serious allegations against Tareen’s management of JDW Sugar is that he has packed the board of directors with personal employees, including some people who do not have the educational or technical qualifications or experience to be able to execute their fiduciary responsibilities to the company’s other shareholders.

    Looks like the ideal blueprint for a future PTI cabinet.

    Recommend

  • Nov 23, 2012 - 10:50AM

    The Pakistan Tehreek-e-Insaf has bragged about its technocratic duo of Jahangir Tareen
    Why does ET’s writers use such unprofessioanl and unethical language while reporting. ‘Bragged’..seems as if some high school student is writing for some een magazine!

    Recommend

  • Shahzad
    Nov 23, 2012 - 11:01AM

    “Tareen points out that Ghaffar is no longer on the board of directors, but the list for 2011 and 2012 includes the name Muhammad Ismail, who is reportedly a cook in the Tareen personal residence in Lahore. Incidentally, Muhammad Ismail is also listed as a member of the board’s audit committee, which is supposed to scrutinise its financial records.”

    My research shows the writer Asad Kharal, is a journalist with a degree from Punjab University, he should know that a cook, is required desperately in the west , it is only in this country, that we look down on such professionals. If Jamie Oliver had been on this board / committee then nothing would have be construed negatively.

    Being a cook Mr Ismail probably brings more to the table , he certainly has a better chance of getting a work visa for Canada then Mr Kharal. Moreover the graduates in Parliament have not really blazed their name into history. Such class distinctions are not in line with a islamic or democratic traditions and should now be eliminated. After all what is the difference between a cook , a doctor, an accountant or a lawyer, they are all practising a vocation.

    Recommend

  • SurelySure!!
    Nov 23, 2012 - 11:03AM

    Well, i think its about Law and that’s all. I don’t care if he is hiring his Cook/Chef/Gardner/Peon etc. as “director” of his company.
    The company external Auditors should check all matters and report accordingly (as per law).

    PTI is composed of normal people who have all the skills required for usual Parliamentarian. So, let’s wait and see if they get a chance (which is very bleak) to get into Parliament and then we can see their behaviour. I am sure they will not disappoint me :)

    Recommend

  • Concerned
    Nov 23, 2012 - 11:07AM

    The reports itself states that none other stakeholders have more than 10% share hence can’t appoint members. This leaves others with the rights to appoint and they are appointing. So ET do you mean problem is with the RULES or TAREEN?
    I urge ET to run the same for all other family business by the politicians. I am sure you dont have the courage to do this for units owned by N league specailly :)

    Recommend

  • Noor
    Nov 23, 2012 - 11:08AM

    Please prepare same report for sharif family

    Recommend

  • Haris Khan
    Nov 23, 2012 - 11:10AM

    Seriously?.. Now that ET coudnt get anything against IK and PTI, it is going to question how PTI members employ their drivers and butlers. If the company is the most profitable organisation (even you admit that, thankfully) in its sector, I am more than happy for an illiterate to be running that company. The shame is that this news is making headlines on your web page? Today there are two best examples of media being bias: 1. International media on GAZA, 2. ET against PTI!.

    Recommend

  • JS
    Nov 23, 2012 - 11:16AM

    look at the bottom and top lines of the company. Is this even an article worth writing considering whats happening in PIA, Pak Steel, Railways, NICL, NLC, IPPS?!?!?!? Cannot find a better example of yellow journalism than this….

    Recommend

  • Saud Usmani
    Nov 23, 2012 - 11:43AM

    Nothing new about it, lets welcome a new TSUNAMI of Corruption.

    Recommend

  • Nov 23, 2012 - 11:49AM

    Are you even serious to write this piece indicating that PTI suffers from your ignorance of Business Entity Concept ???? Go read Code of Corporate Governance and ensure its compliance from extrenal auditors’ report. I would trust report of PWC than your random thoughts making absolute no sense in corporate terms .

    Recommend

  • salman
    Nov 23, 2012 - 11:53AM

    At least the report admits that allegations are being made by pmln. Anyways I have often heard mushadullah sahib of pmln justify that the reason nawaz pays so little tax is because his companies pay for his expenses and the company pays the corporate tax. Apparently this is ok according to him…….so wonder why pmln have a problem with tareen using his jet?

    Lol…even pmln propaganda is failing

    Recommend

  • Ghazanfar Mahmood
    Nov 23, 2012 - 11:54AM

    i think we should appreciate the social work which Mr jahangir Tareen is doing for the poor people of District Lodhran. He arranged several free eye camps and started so many developmental projects like Tareen Education Foundation.NRSP and LPP. for the poor people of Lodhran and Raheen Yar Khan.

    Recommend

  • asim
    Nov 23, 2012 - 12:10PM

    @Ahmad Khan:
    Let be assure you no wealthy person can bring a revolution;they come into power to multiply their wealth

    Recommend

  • us
    Nov 23, 2012 - 12:11PM

    This reporter of this article lacks credibility as I saw him once on the TV being castigated by Kamil Ali Agha who pointed him being catering to PML-N lines. This story has the same tone, malicious and scandalous.

    Recommend

  • Feedom Seeker
    Nov 23, 2012 - 12:14PM

    Better to notice funding of his business projects through USAID dollars too.

    Recommend

  • Moazzam Salim
    Nov 23, 2012 - 12:20PM

    The question is not that the JDW is a commercially successful venture but that whether PTI’s second tier leadership has the ethical and moral values that Imran Khan profess? It might be a little thing for many to indulge in some form of corporate mismanagement but it shows that Mr. Tareen can go to any lengths to have his way. In fact this is the biggest dilemma faced by PTI at this moment, when its Chairman calls the next election a confrontation of passion (PTI) versus money (all the other political parties) it is in fact his own leadership that is showing consistent signs of moral, ethical and commercial mismanagement/corruption. Right now there is a huge question mark not only against Mr. Tareen but also against Mr. Kasuri and Mr. Aleem Khan.

    Recommend

  • Noor
    Nov 23, 2012 - 12:30PM

    How can Personal servants make his firm one of best sugar mill in pakisan.These are servants or supermen

    Recommend

  • Adeel
    Nov 23, 2012 - 12:32PM

    Another article against PTI how original.
    Would love to see such articles against PML-N and PPP

    Recommend

  • MAD
    Nov 23, 2012 - 12:52PM

    No laws broken, all regulations complied with, clean bill from the company auditors (KPMG mind you) So whats the point of this article. Nothing.

    Recommend

  • Hamid
    Nov 23, 2012 - 1:01PM

    @Jet Tareen:

    The report says he has refuted this allegation. Unless there is evidence to the contrary let us respect his word please.

    Recommend

  • Hamid
    Nov 23, 2012 - 1:06PM

    @Affan Dawood:

    Again, the issue is does he have majority shareholders have different rights to the rights of a minority shareholders. Surely one doesn’t wish to say that he does!!!! or does one??
    It may be that he is allowed use of the jet for personal use under the terms of his appointment to whatever office he holds in JDW and if such are emoluments are approved by the Competent Authority(s) then this is hardly even news.

    However, the appointment to the Audit Committee of domestic servants with no commercial and/or technological expertise is a more serious issue for the SECP to investigate. I say investigate, and it may be the gentleman is “fit and proper” to hold the position and has been discharging his duties in the manner he sould. I personally doubt it, but that remains to be seen.

    Recommend

  • Nov 23, 2012 - 1:06PM

    come up with something substantial and dont do just defaming on agenda especially with these cheap shots !!!

    Recommend

  • HH
    Nov 23, 2012 - 1:06PM

    A very good piece!!! We need more investigative reporting of this sort

    If one reads the recent history of Corporate USA, a lot of frauds and scandals (e.g. Tyco, Worldcom, Enron) were unearthed by investigative reporters, who also wrote a number of books based on their experiences.

    Recommend

  • Parvez
    Nov 23, 2012 - 1:15PM

    JDW Sugar mills is well managed. Tareen is successful and relatively clean………..so whats the fuss all about ? To get a better picture compare him with the owners of other sugar mills, that is if they let you have access to their finances.
    If dirt and damage to the national exchequer is to be found then question the governments sugar pricing and export / import policies over the last 10 years.

    Recommend

  • Zohair
    Nov 23, 2012 - 1:15PM

    Immature or amateur journalism?

    Recommend

  • khan
    Nov 23, 2012 - 1:15PM

    regardless of whether its true or not, its likely to be funded by PMLN and its nice to see that they are losing sleep over PTI. This is called success

    Recommend

  • asif g
    Nov 23, 2012 - 1:23PM

    these propaganda news won’t work now..
    a lot of distorted news is being spread around.

    Recommend

  • Pr0udPakistani
    Nov 23, 2012 - 1:38PM

    Well done ET..you leave no stone unturned to tarnish the image of PTI. At least this guy is paying taxes and if he is not doing anything illegal then who cares if he drives a gold plated bmw or a jet?

    Can you investigate the same about PML-N members? Can you tell the nation how much taxes Sharif Brothers and their families are paying? Lets not talk about the royals as it would make the blind supporters of PML-N angry. Lets take an example of khokhar family living in a lavish house (read castle) in Johar Town Lahore. Can ET tell us how much taxes these guys have paid last year??

    The govt. of punjab is spending taxpayers money like no tomorrow at the end of their term without proper planning and determining the ROI on failed schemes like danish schools, laptops and the mother of all stupid project is metro bus system for which they have converted the green lahore into a city of dust and iron.

    Recommend

  • Hamid
    Nov 23, 2012 - 1:44PM

    @Shahzad:
    Would the learned author agree to allow me (a non medical professional) to carry our major heart surgery on him or any loved one! I would think not, unless of course he is insane.

    The issue is not to belittle one’s profession as you have somehow tried to twist the argument to, the issue stems from the fact that the said person is unfit to conduct the affairs of the Audit Committee. Having served on the Board of Directors of a number of listed companies, I assure you the competence of the Audit Committee is a significant issue and I challenge the competence of a cook to serve on the Audit Committee on account of his lack of experience and expertise to add any value whatsoever to the fucntions of the position for which he is so appointed.

    As regards to personal use of official property aka the plane, is that inline with the remuneration extended to Mr Tareen and so approved by the Competent Authority. Would the same facility be extended to any of the other shareholders? If it is, I think i will acquire shares in JDW Sugar and avail myself of travel on board a private plane at my leisure on a 6 month credit. If this facility is not allowed to other shareholders then this is cheating, pure and simple.

    If the two major shareholders Messers Tareen and Ahmad own only approx 62% how can they appoint all the directors. Surely the shareholders can get together and put a director on the board to represent thier interests. Such a move would always be backed by the SECP and I am sure Mr Tareen himself.

    I hope the SECP does look into this and if found true, not only should the Directors be hit with the maximum penlaties but should also be disqualified from holding such offices in future.

    Recommend

  • the Truth
    Nov 23, 2012 - 1:45PM

    the fact that the story acknowledges that JDW Sugar is the largest and most profitable sugar producer means that he is doing something right. When I invest, my decision is driven by the bottom line, and the bottom line here is that he makes that company money. If the returns are good enough, he can take the corporate jet and paint it pink as far as I’m concerned. If the shareholders of the company are unhappy with the returns and think it can be better under someone else they should vote to remove him or sell their shares.

    Recommend

  • resilient
    Nov 23, 2012 - 2:35PM

    Dont know much on tareen but if imran chooses Asad Umer as to lead Pakistan’s economy.. nothing more than a hoax… Umer’s comptencies can be gauged how he ruined the Engro Fertilizers which today is struggling to survive for its existence…:)

    Recommend

  • @UzaSyed1
    Nov 23, 2012 - 2:35PM

    @Hamid: No we won’t allow a non-cardiac surgeon to perform heart surgery but we are expected to and, shudder to think, might even let the thieves like this one manage our national wealth.

    Recommend

  • Hamid
    Nov 23, 2012 - 2:49PM

    @@UzaSyed1:

    Sad isnt it :( the sad part is we let these people do thier want.

    Recommend

  • umar
    Nov 23, 2012 - 2:50PM

    I dont know what kinda problem ET is having with IK publishing such news on front page. No newspaper, would ever had published matters of a private company in such way. JDW has nothing to do with PTI. Lifafa journalists everywhere. ET you’ve won a medal ! gr8

    Recommend

  • Aftab Kenneth Wilson
    Nov 23, 2012 - 3:01PM

    Oh No. So we have no Angels left to rule us. It is time for credible journalists to come out with investigate reporting as done in this Tareen Case. NS’s Empire is on stay order so why not do some work on their cases. It will not be contempt of court.

    Recommend

  • rashid khan
    Nov 23, 2012 - 3:10PM

    While he has investigated JDW thoroughly Kharal has presented a selective sketch of the organisation he has conveniently ignored its more effective and efficient features with the sole objective of presenting a negative picture of Tareen and PTI.
    I’m sure he will be using the same investigative skills and presenting his readers with an equally revealing write-up of Sharif clan, its wealth, its uncanny ability in financial empire building, especially the recent achievement the real estate tycoon in the UK.
    He could cap off his research with comparable information about taxes paid by the JDW and the Sharif enterprises.

    Recommend

  • ali
    Nov 23, 2012 - 3:15PM

    Ridiculous investigation..
    paid campaign against PTI…

    Recommend

  • OK
    Nov 23, 2012 - 3:21PM

    @Hamid:
    First of all, this is not a life or death situation so your analogy is void.
    Secondly, I doubt the integrity and for that matter quality of the audit committees of most listed companies in Pakistan. I would think a bunch of well meaning 15 years (who have some common sense) could do better job. Unfortunately, this is the state of the nation.
    Thirdly, and lastly, shareholders DO NOT get use of corporate facilities. Which board have you been part of?? Where has your common sense gone?? Company assets may be used by employees or certain designated individuals. Theres a process for deciding who can use what and at what terms. I know what any person with a basic understanding of corportate governance would say but I dont care to get into that discussion right now.

    I do not know if this article is accurate. It would have been good to get a complete statement from the “accused” before printing an article. It says Mohd Ismail is REPORTEDLY a cook. Why not just get a confirmation on this point before publishing an article?? Would it have made a difference if the author/ET had printed this report a couple of days later, after having done their homework?

    No minority shareholder has been forced into buyng JDW shares. If they feel there is an issue with regards to corporate governance they should try and get their recommended changes made. If they cant and have other concerns they can sell.

    Recommend

  • Nov 23, 2012 - 3:33PM

    @Haris Khan:
    ” Now that ET coudnt get anything against IK and PTI, it is going to question how PTI members employ their drivers and butlers. If the company is the most profitable organisation (even you admit that, thankfully) in its sector, I am more than happy for an illiterate to be running that company. The shame is that this news is making headlines on your web page? “

    The problem is not whether promoters/ major share holders appoint their waiter/ cook or gardener as directors in a private company also listed in KSE ( means there are many ordinary people too as share holders/ owners) If major share holders appoint persons who do not have any knowledge of the job they are required to perform, means that their services are use less to the company, though not illegal but wrong and unethical and detrimental to the interests of many many ordinary shareholders.. This also indicates the mindset of treating the company (whose scattered owners including institutional investors have more share in ownership than Mr. Tareen & family) as their exclusive property .

    Now the problem arises only when persons of such mindset are projected as the brain to improve the economy of the country( as the company is highly profit earning) to garner the votes for PTI to bring them in power.. The aforesaid episode raises a big question mark on their fair dealing as the projected driver of the economy. Hence the importance of such article assumed by ET for the benefit of public at large. No bias. . I have observed that ET provides opportunity to all to air their views.

    Recommend

  • Blithe
    Nov 23, 2012 - 3:36PM

    Shocking !!!

    SEC must investigate and take action .

    Similar to Zardari , who has properties in Dubai under name of pesants from interior Sindh

    Recommend

  • shahid
    Nov 23, 2012 - 3:46PM

    well I can see the author of this report, ET team and PMLN media team pulling each other’s hair aftre reading the comments by the readers. Eeverything that they can and do come up with against PTI in this media game, somehow does not pay off for them. How strange!!

    Recommend

  • MAD
    Nov 23, 2012 - 3:50PM

    @Hamid: Investigated. No fit and proper definition for directors from the SECP. SBP has one but not the SECP. If there had been an issue SECP would’ve raised it a long time ago. Now its all just hogwash

    Recommend

  • nazir Shah
    Nov 23, 2012 - 3:51PM

    One of the Best investigative journalism articles seen in recent past in national newspaper, it is world class. We need journalist like Asad, who can give sleepless nights to powerful people. Full Marks, we are proud of professionals like him.

    Recommend

  • Azeem Jimmy
    Nov 23, 2012 - 3:59PM

    How biased this ET against PTI now Tareen after imran. Shame on u ET

    Recommend

  • Hassan
    Nov 23, 2012 - 4:03PM

    The shareholding pattern of the company shows that 95% of the shares are held by 24 shareholders. The small shareholders are less than 3% of the total paid up shares amounting to 59 million. The major share holders are mostly family members of the directors. The major share holder who in this case is Jahangieer Tareen also happens to be the CEO of the company. Corporate Governance issues are important where the shares of the company are held by general public, which is not he case in JDW sugar mill. Corporate Governance in any case is more of a joke in Pakistan.

    Recommend

  • Haider Ali Khan
    Nov 23, 2012 - 4:04PM

    I am a shareholder of JDW Group, bought the shares after selling my ancestral property. I am totally a political, as far I am concerned all politicians, PML N , PPP, MMA, PTI can go to Siberia. But I am woried about my money. How can Imran Khan justify joy rides on a plane in which ordinary “a political” people like me have a share. I dont like any politician having nice time on the my expense. I feel betrayed as far as Jahengir Khan Tareen is concerned. As CEO of JDW, he is accountable to us the share holders. Isn’t it sham corporate governance if you choose your illitrate servents to ovoid accountability and democracy. The fact is it is not about politics, it is about rule of law, morality and Good Corporate Governance.

    Recommend

  • True picture
    Nov 23, 2012 - 4:23PM

    Oh he’s really corrupt!. on the other hand, just giving one small example, Shariff family sold their stockpile of steel on badly planned metro bus project which they couldn’t sell anywhere else, isn’t it great that they used tax payers money to buy from their own steel mill?

    Recommend

  • ahad
    Nov 23, 2012 - 4:31PM

    As we speak ill of the man let me recount some good. In the earthquake of 2005 Tareen was found days after days driving in the area trying to get food, medicine, tents and later schools for those hit by the disaster. We often envied if more Pakistani politicians could be like him. As a nation lets also start counting the positives in our lives, the evil is anyway all around

    Recommend

  • ahad
    Nov 23, 2012 - 4:40PM

    As we speak ill of the man let me recount some good. In the earthquake of 2005 Tareen was found days after days driving in the area trying to get food, medicine, tents and later schools for those hit by the disaster. We often envied if more Pakistani politicians could be like him. As a nation lets also start counting the positives in our lives, the evil is anyway all aroundRecommend

  • Adnan Siddiqi
    Nov 23, 2012 - 4:42PM

    The Immature Brigade and Internet Warriors who consider wearing shades of bias at all times an honour – JT is one of the richest persons in Pakistan who own thousands of acres of prime agriculture land in Punjab and is a majority shareholder in Pepsico, Lahore besides this sugar mill. Yet the guy has only paid Rs. 40 million in taxes? And please don’t come back with the laughable retort that “Sharif Family” does not even pay that much.

    One more thing to note here, JT Sugar Mills recorded a gross revenue of Rs. 26.5 billion – what exactly is this mill refining, Brown Sugar!

    Recommend

  • jetlagged
    Nov 23, 2012 - 4:58PM

    i hope the pak ppl realized that pervez musharraf was speaking the truth when he said “we’re all of the same stock”.

    Recommend

  • Adnan Siddiqi
    Nov 23, 2012 - 4:59PM

    Please don’t forget all of y’all, besides being a dictator’s lackey – Tareen was also responsible for for the Wheat Crisis of 1997 when the commodity was exported @ $200/Ton rather injudiciously and later on the same wheat was imported @ $ 405/Ton. The massive loss inflicted on the exchequer besides shooting up the price of wheat in Pakistan, this scandal pitted the federal government against the Punjab Government and Pervaiz Elahi openly blamed Tareen for such “Best Practices.”

    Recommend

  • jetlagged
    Nov 23, 2012 - 5:00PM

    what difference does 1 more corrupt individual make in a nation of 180mn of his peers?

    Recommend

  • Adnan Siddiqi
    Nov 23, 2012 - 5:01PM

    @Azeem Jimmy:

    Jehangir Tareen has the money which can buy the best attorneys not only in Pakistan but from the entire world. What’s stopping him from filing a defamation suit against Express Tribune? Why has he chosen to simply issue a two liner denial on Twitter?

    Recommend

  • Vasseh
    Nov 23, 2012 - 5:33PM

    Comeon ET! Lets hear stories about sugar mills owned and run by other political big wigs like the sheriffs etc etc

    Recommend

  • Kaddu
    Nov 23, 2012 - 5:44PM

    @ Haider Ali Khan

    If you’re shareholder of JDW, I suggest you should bring this up in the next shareholder meeting and remove Mr Tareen from the CEO position. Making comments here would not help you in anyway.

    Recommend

  • Adnan Siddiqi
    Nov 23, 2012 - 5:58PM

    @True picture:

    Are you sure that you are not Raja Riaz who is contributing under a pseudo-name? Where is the proof that Lahore Metro Bus Project has been adorned with steel bought from Ittefaq Foudries? Quit beating around the bush for a change and comment on the news at hand…..the rest are all coloured bubbles.

    Recommend

  • Ch. Allah Daad
    Nov 23, 2012 - 6:35PM

    Tareen was an honest businessman but became corrupt since he joined PTI. He is learning fast from his leader who is using donation money to make quick bucks.

    Recommend

  • Nov 23, 2012 - 6:37PM

    @Adnan Siddiqi:
    .
    “One more thing to note here, JT Sugar Mills recorded a gross revenue of Rs. 26.5 billion – what exactly is this mill refining, Brown Sugar!”
    .
    We are in the wrong business, should be refining Brown Sugar. Adnan baby, so much of it gives you a real high! Flyin’ all the time.

    Recommend

  • sohaib
    Nov 23, 2012 - 6:59PM

    Can ET expose the bigger corruption of the ruling parties? It always goes after PTI.

    Recommend

  • Nov 23, 2012 - 7:17PM

    Running a sugar mill does not equip you for running a multi-billion economy.

    Recommend

  • Fahad Khan
    Nov 23, 2012 - 7:23PM

    Goal of maximum number of clicks and comments achieved. So what if journalistic ethics are not followed. So what if the story defames an honest businessman who pays more than 4 crore in tax. All ET needs is to maximize clicks and comments and writing against PTI is the easiest way to achieve it.

    Recommend

  • Tariq
    Nov 23, 2012 - 7:28PM

    Some serious allegations need answers !

    Recommend

  • Kh
    Nov 23, 2012 - 7:29PM

    I dont understand if a person own 41 percent of shares, he would only be stupid to put some one in capable….tribune just needs something

    Recommend

  • Falcon
    Nov 23, 2012 - 7:34PM

    @Haider Ali Khan:
    The logic says that if you are interested in return on your investment and if the company is providing you the best returns in the investment portfolio, you should be happy. If you are unhappy with the state of governance, bring in a new CEO. Lastly, about the plane issue, I think the article already mentions that JT pays back to the company for personal usage.

    Recommend

  • Hello1
    Nov 23, 2012 - 7:59PM

    At least he does not have a Swiss Bank Account or any rental power houses!!

    Recommend

  • Nov 23, 2012 - 9:42PM

    We’re Mr Ghaffar and present cook from his home were paid?According to the article, they did not know they were on board of directors. I think this guy should be behind the bar for rest of his life or say for 75 yrs. that is the way he will be dealt in USA.

    Recommend

  • True picture
    Nov 23, 2012 - 10:23PM

    @Adnan Siddiqi:
    everyone in Lahore knows this that the steel which is being used on the metro bus project has been bought from the Sharif families steel companies stockpile which they were unable to sold elsewhere! not to forget the laptop scheme (rather a scam), the per unit cost quoted by the Punjab Government is between Rs 30-40K whereas in reality it is not more than Rs 20K! so quit defending Mr Nawaz who supported Zardari & who comes into politics to expand his business empire! people like you make me sick, glad there are now few like you and Pakistan will change in next election when we get rid of corrupt & dynastic parties.

    Recommend

  • Dilip
    Nov 23, 2012 - 10:26PM

    Sugar mills in Gujerat, India are owned by farmers. The farmers have shares in the mill. They are provided with seedlings and the labour to cut and transport the sugar cane at harvesting time. They are provided with loans at reasonable rates for the fertilizer that is used. After harvesting the crops, the price per ton is formulated and given to the farmer. The end result is that the overall winner is always the farmer and not an individual.

    Recommend

  • Katnhu
    Nov 23, 2012 - 11:07PM

    Totally unecessary article. JDW sugar is much better run than ET even if they have cooks as Directors. Everyone has Directors as children and wives with no skills – so if they get a bawarchi what’s the big deal really? The wife and bawarchi probably have similar skills.
    ET needs to get a life. Really!

    Recommend

  • roadkashehzada
    Nov 23, 2012 - 11:31PM

    hola of divinity around imran khan and his buddies really scares me. i m afraid that PTI is new JI in making. fraternity and brotherhood regardless of truth, right or wrong. violent replies from PTI guys when khawaja asif targeted imran khan scared me and even more scared the imagination that if these guys control government machinery. i m sure they would have got khawaja asif killed for blasphemy.
    come on guys. imran khan is a politician not a saint. jehangir tareen is a politician and businessman. he appointed his cook and personal staff as director which clearly is wrong. guys talking about KPMG and PWC would definitely know the mechanism of auditing profession and if they know KPMG and PWC they would know lehman brothers, enron, satyam etc as well. (independence of auditor is a separate topic). leave some room of error for imran khan and his guys. they r not infallible.
    p.s. i m pmln voter and i know and acknowledge when NS makes wrong statements

    Recommend

  • Shahzad
    Nov 23, 2012 - 11:32PM

    @Hamid:
    “somehow tried to twist” if you say you have served on an audit committee you should be aware about law ow of evidence same as our Qanoon e Shahdat what is admissible evidence. Above statement emanates from reading someone’s mind , you can read your own not someone else’s, at best conjecture at worst conspiracy theory, in any case neither sustainable as admissible evidence.

    I stand by my statement that a cook accountant lawyer doctor are all vocations. Corporate governce is good practise and should never be law, I can debate this with you.

    Recommend

  • MAD
    Nov 24, 2012 - 12:23AM

    @Adnan Siddiqi: Uhhhh why dont you visit the company website, download the annual report and see for yourself wht its making. Brown sugar? And they would actually disclose that in financials. Man are you on something.

    Recommend

  • Bashir
    Nov 24, 2012 - 1:28AM

    Jahangir tareen at least paid for using the plane. How much Nawaz Sharif has ever paid for hundreds of policemen being used for his personsl security. His son in law, his daughter and other members of his family get security at public expense. Shebaz Sharif sons and son in law who beat a bakery employee also guarded by police personnel at my and your money. Not to speak of official transport they misuse.

    Recommend

  • Imran
    Nov 24, 2012 - 1:33AM

    This ‘ investigation on the behest ot NS brothers shows how narrow minded they are.

    Recommend

  • Shahzad
    Nov 24, 2012 - 6:05AM

    @Hamid:

    Also are you saying that to be on the board of an audit committee, you need the same skill set as a heart surgeon. Well sir let me point out there was no cook on the board of Enron and our own crescent standard investment bank and major crimes were committed in the name of corporate governance . I am also aware that corporate governance is good practise and not law in a lot of countries , and also I suggest you read of the journey of family companies to big corporations and how things evolve. Personally i think, rule of law and corporate governance is not the preserve of the urban so called professional, there are many urban professionals who act like mafia dons.

    Recommend

  • Chawla
    Nov 24, 2012 - 9:27AM

    In corporate world it is well accepted and legal to register personal vehicles, boats and Aircrafts in company’s name. On paper they are shown as perks of MD/Chairman. If you own the entire company, it is normal to have your relatives and employees as Directors. SECP accepts this as legal practice. It is obvious that this article is based on the account of details given by a disgruntled employee who was kicked out.

    Recommend

  • Hasnain Ali
    Nov 24, 2012 - 4:06PM

    “Meetha meetha hup hup… Karrwa karrwa thu thu”
    When their is any mudslinging on PML-N by PTI’s wanna-be politiciansis is ok. But when the PTI wana-be are exposed, the PTI trolls start criticize ET and PML-N.
    They can never respond with logic !!!

    Recommend

  • Zahid
    Nov 24, 2012 - 9:01PM

    This is one of the most biased article I have ever seen. Look at the comment, “Tareen and his son own only a combined 42.1%”. ONLY 42.1%!!! With that kind of shareholding I can have my dog appointed to the board, legitimately. Between the two brothers-in-law, they own 61.5% of shares.
    @Hamid. Even on the Audit Committee, only one financially-savvy member is needed. There are remedies available to minority shareholders, under the law, to protect their interest. I am not sure how the author came to the conclusion that the remaining 38.5% shareholders don’t have the authority to appoint a director. Has he ever heard of proxy voting where the shareholders pool their votes and reach a joint settlement?

    Amazingly, the author made only a scant mention of the profitability of the venture. What else do the shareholders need from an investment? May be more attention should have been paid to, “JDW Sugar Mills is the largest and most profitable sugar manufacturer in the country, … For the financial year ending September 30, 2011, the company had gross revenues of nearly Rs26.5 billion and a net income of Rs1.3 billion.”

    If this is all they can bring out against a businessman, he is not doing too shabby!

    Recommend

  • Haider Ali Khan
    Nov 24, 2012 - 9:17PM

    This is 21st Century so lets think like enlightened citizens, following is from JDW website, given under Jahengir Tareens name.

    “The Board of Directors comprised of seven (07) Directors. The Company encourages representation of independent non-executive Directors on its Board of Directors. At present the Board includes four independent non-executive directors.”
    “All the powers of the Board have been duly exercised and decisions on material transactions, including appointment and determination of remuneration and terms and conditions of employment of the CEO and other executive directors, have been taken by the Board.”

    So how come Ghaffar and Ismail the domestic servants of Tareen sb qualify as “Independent non-executive directors” of the board, they are paid employees of Mr Tareen in another capacity.

    Secondly the personal servents domminated board give there CEO Mr Tareen a renumiration package of 33 M ruppees in 2011. So here lies the trick. The personal servant of Mr Tareen are appointing him, the CEO of a public listed company. Mind you he is majority shareholder not the owner. 40% shares belong to other people. All this info is available on JDW website. So all these PTI vigilantes please see JDW report on website.

    So if there was nothing wrong why has he immediately removed Ismail the cook from the board and the website ???. But it is documented in the SECP record.

    Best would be for Imran Khan to appoint Justice Wajiuddin to inquire into the entire matter. Only then people will accept his tall talk about fininshing corruption in 9 days.

    Recommend

  • Hasnain Ali
    Nov 25, 2012 - 10:05PM

    No response to the fact that who elected and selected non-matric cook & waiter to company’s Board? and
    2* how the cook rises to member Board Audit Committee?
    3* what is the credibility of those decisions?
    4* where is corporate governance?
    5* was minority shareholder’s money involved?
    6* who is supposed to protect minority shareholder’s interest in Pakistan?
    7* where is SEC in Pakistan?
    Corporate scrutiny is very limited in Pakistan if it at all exists. Investors do not know their rights and even if they do, all they can play with is, Take it or Get out. Tareen would have been in Jail had this been in NY with SEC agents all over him.

    Recommend

  • Nov 26, 2012 - 4:08PM

    @ali:
    .
    “Ridiculous investigation..
    paid campaign against PTI…”

    If you know about these payments then it is very wrong of anyone to blame honest billionaires, industrialists, or rising politicians.
    .
    Tax evasion is nothing unique to any specific country. Seems like a universal malaise EU is grappling with this problem. With present laws or curtailments in the offing, can they effectively come nearer to a solution for combating this menace?
    .
    Mode of operation of these tricky offshore accounts put ants in the pants of tax inspectors. BBC with help of some journalists has done a documentary covering the workings of these delicate operations which is aimed at nothing but dodging taxes.
    .
    With its meager resources, Pakistan does not have the capability even to
    scratch the surface of the rot, in their case. Anyway, it would be a good idea to learn about the workings of this despicable fraud against the common man. .
    .
    Please read The Guardian’s story on it Shadowy off-shore accounts

    Recommend

  • Janjua
    Nov 27, 2012 - 3:26PM

    Come on Nawaz family!!! U used Punjab gov heli for political campaign in AJK had twice more loans waived off than this company’s annual income… Poor tareen owns the God damn company with 42% shares less his family members’ shares, he can use the plane without any reimbersement …Still u pointing fingers at tareen like a European clean society representative …sharif Sahab u r the biggest disaster this country suffered more severe than 2005 earthquake or the recent floods… Only expected out of u is leave politics… KHUDA K LIYE

    Recommend

  • Rizwan
    Dec 14, 2012 - 5:39AM

    Its ironic that this is coming from a party whose leader Nawaz Sharif, who currently doesn’t hold any office, uses government helicopters (as seen in a photo circulating on the internet) and other resources for his political campaign.

    Recommend

More in Business