"Nargis Sethi is not ready to sign notifications of CEOs recommended by the Minister," the sources insisted. USAID also identified some instances, saying that governance at company level left much to be desired. Most of the boards of the distribution companies (Discos) did not have sufficient authority or capacity to demand accountability from management and staff was ineffective in managing Discos' performance.
"Politically driven appointments of CEOs and top management continue to prolong and enhance self-interest groups in maintaining the status quo," the sources quoted a joint study of Planning Commission and USAID as concluding.
The Power Distribution Program (PDP) recommended many areas for improving corporate governance via USAID-supported programs, but these were yet to be implemented. Contrary to the code of corporate governance of State-Owned Commercial entities, recently approved by the SECP Policy Board, the Ministry of Water and Power is set to post junior most Superintending Engineer (SE) on current charge as the CEO of a Disco.
According to details gathered by this correspondent, Javed Iqbal Azad, who was only posted as an SE in the field by CEO of Lahore Electric Supply Company (Lesco) a month ago, was short-listed through a hitherto unknown process, interviewed by the Minister of Water and Power himself last month and then approved to be posted as CEO of Gujranwala Electric Power Company (Gepco).
The sources said that Azad did not possess any utility management experience and up-till-now only worked as an SDO and XEN in the field. He also does not possess any additional educational qualification and is known to have 'mediocre' performance. Furthermore, his senior colleagues are ready to move the Lahore High Court for relief.
Insiders in the Ministry told this correspondent that the incumbent CEO GEPCO, who was yet to be confirmed as the CEO at GEPCO, was tipped to be posted as the Managing Director National Transmission and Dispatch Company (NTDC), which is presently being looked after by Musadiq Khan, a Joint Secretary (again on current charge) of the Ministry. Alam does not possess any experience working in NTDC.
Appointment of Board Members and the CEOs would be subject to criteria laid down by the SECP, including qualifications, experience and business expertise. According to experts, the selection of Azad as CEO GEPCO is against all rules and so is the accepted transfer of the incumbent holding the charge of CEO at Gujranwala to the position of MD NTDC.
The actual notification of both Azad and Alam are held up even after the Minister's approval because of non-acceptance of the same by the Secretary Water and Power Nargis Sethi. The sources said that the appointment of incumbent Chief Executive Officer of Lahore Electric Supply Company (Lesco) is also being discussed at various levels.