Power project: Nandipur project chief hired in breach of rules

MD receives allowance 1,600% higher than is permissible.

ISLAMABAD:

An official, decorated with Tamgha-e-Imtiaz for his ‘untiring work’ as managing director (MD) Nandipur power project, is hired in violation of the laid down procedures while he receives a project allowance as much as 1,600% higher than the permissible one.

According to sources, Captain (retired) Muhammad Mehmood – a grade 19 officer of Pakistan Administrative Service, was appointed as the MD of the power project in violation of the laid down procedure.

Disregarding the advice of their own ministry, the custodians of the country’s finances have also allowed Mehmood an allowance almost 1,600% more than the normal deputation allowance, official documents reveal.



According to the PM office, Prime Minister Nawaz Sharif – on the request of Punjab Chief Minister Shahbaz Sharif – also announced ‘Tamgha-e-Imtiaz’ for Mehmood on May 31 for his ‘relentless hard work’ and contributions in the completion of Nandipur Power Project.

Through a summary, Ministry of Water and Power had requested the Ministry of Finance to give Rs100,000 monthly allowance to Mehmood, as the Nandipur project falls under the purview of power ministry.

On the summary, endorsed by Secretary Finance Dr Waqar Masood, Finance Minister Ishaq Dar sanctioned the allowance to Mehmood. According to Office Memorandum of Ministry of Finance of 2012, the civil servant can get Rs6,000 as monthly project or deputation allowance.

The decision to grant Rs100,000 allowance has also set a precedent for hundreds of other project directors, who may demand similar treatment, said the sources.

Both the top guns of the ministry went against the advice of the regulation wing of the finance ministry that raised the flag about the irregularity. “Rs100,000 per month is barred by Finance Division’s Office Memorandum (of April 2012),” warned the regulations wing, according to the official documents.



The regulations wing further noted on the file that the project allowance rules had been framed with the approval of the Planning Commission’s deputy chairman and now any relaxation could only be given with the approval of the prime minister.

To avoid any wrongdoing, the regulation wing proposed that the concerned official could be ‘compensated’ through grant of honoraria under the relevant rules – an advice not liked by those pushing the case.

The regulation wing wrote that the proposal of giving honoraria appeared more suitable to avoid any prospective litigation ‘please’. But this advice did not impress those who wanted to grant special treatment to Mahmood. Some of the pages of the original file have been replaced to destroy the evidence, the sources said.

The Ministry of Finance Director General Media Nadeem Kayani confirmed to The Express Tribune that Dar granted Rs100,000 project allowance to Muhammad Mehmood. “Finance Minister Ishaq Dar has the authority to approve allowance higher than Rs6,000,” said Kayani. But he did not cite any rule that vests such authority in the FM.

Interestingly, Finance Ministry had denied similar benefits to Nargis Sethi, the Secretary Economic Affairs Division, when she sought a monthly salary of Rs1.602 million in her capacity as Chief Executive Officer (CEO) of Pakistan Power Park Management Company Limited (PPPMCL).

In her case, the ministry’s view was that the rules did not allow any civil servant to draw two salaries or even claim benefits of deputation or additional charge except an allowance of Rs6,000.

When contacted Mehmood confirmed to The Express Tribune that he was receiving Rs100,000 monthly allowance. He said the money was meager when compared with Rs2 million salary his predecessor was drawing. However, when the irregularity was pointed out to him, Mehmood said he did not play any role for getting the additional benefits.

To a question, Mehmood also confirmed that he was not hired as the MD through competitive process.

Published in The Express Tribune, June 15^th, 2014.