After a delay of almost one and a half years, the federal government on Wednesday finally completed the composition of the two most important regulators – the Securities and Exchange Commission of Pakistan (SECP) and Competition Commission of Pakistan (CCP).
However, one appointment has immediately become controversial, as the government has appointed Zafarul Haq Hijazi as SECP’s new commissioner for the third term, apparently in violation of the SECP law.
The act binds that no commissioner will be appointed for the third term. Hijazi was first brought to the commission in 1999 by Ishaq Dar, who at that time was serving as Finance Minister in PML-N’s second tenure.
The government has appointed three new commissioners in the equity market regulator, fulfilling the minimum requirement of five commissioners. The government also brought in two new members in the CCP, which was working without full strength for the last one and half years.
The Ministry of Finance has notified the appointment of Hijazi, Akif Saeed and Fida Hussain Samoo as the commissioners of the SECP, according to an official announcement.
The federal government was reluctant to make appointments in public sector entities through an Appointment Commission and started hiring people only after the Supreme Court of Pakistan relaxed the condition. However, the apex court has asked the government to complete all appointments before the end of December 2014.
There are chances that the government may appoint Hijazi as the new chairman of the SECP, who is at present the most experienced man among five commissioners.
The controversy over the third-term erupted soon after the government notified Hijazi as the new commissioner. He is said to be close to Finance Minister Ishaq Dar. Hijazi was brought as commissioner SECP in 1999. He then served in the SECP for two consecutive terms and his second tenure was completed in 2004. Hijazi, like Dar, is said to be a charted accountant by profession.
The SECP Act of 1997 does not allow for the third term. When contacted, the SECP denied to comment on the issue and said only the appointing authority can comment on the subject.
The ‘gap’ in changing regulations
A senior official of the finance ministry told The Express Tribune that the ministry has obtained the opinion of the law ministry on the third term. He said according to the law ministry, no commissioner can be appointed for the third consecutive term. But a commissioner can be appointed for the third term with a gap.
But in a similar case, the Supreme Court has rejected the contention of a ‘gap’ in term. The PPP government had appointed Irfan Qadir as prosecutor general of the National Accountability Bureau (NAB) for the third time, which was also in violation of the NAB Act.
The apex court turned down the plea of gap in appointment and Qadir had to leave the post.
Akif Saeed has also been appointed as new commissioner. He was earlier serving as executive director of the insurance division in the SECP. He was given preference over Imran Punjwani, who is serving as executive director of securities division.
Fida Hussain Samoo was executive director in the Pakistan Reinsurance Limited and has been appointed as a new commissioner.
The government also appointed Vadiya Khalil and Ikramul Haq Qureshi as members of the CCP with immediate effect. These appointments bring the total number of members from three to five. Vadiya Khalil has previously served as a member CCP from 2010 to 2013, when she was in charge of mergers and acquisitions, and later advocacy. She has over 20 years of experience in corporate and commercial banking at international and national banks including Credit Agricole, ANZ Grindlys, MCB Bank Limited, Askari Commercial Bank and the National Bank of Pakistan.
Published in The Express Tribune, December 18th, 2014.
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