ISLAMABAD: Before requesting final approval from the federal cabinet, Power Division requested permission from Prime Minister Shehbaz Sharif regarding the reconstitution of the Boards of Directors (BoDs) of the Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Lahore Electric Supply Company (LESCO).
Before bringing the summary to the federal cabinet for consideration/final approval, sources claim that the Power Division sought the premier’s consent regarding the reconstitution of new BoDs of the three power distribution firms, including IESCO, FESCO, and LESCO.
The federal cabinet must approve any appointments made by the federal government to the boards of directors of public sector enterprises (PSEs).
However, according to sources, in order to present the summary to the federal cabinet, prior approval from the Prime Minister is necessary under Cabinet Division’s U.O.No. 7-1/20-Min-I, dated 16-03-2018.
According to the references, the names of Engineer Qamarul Islam Raja, an independent director, Chaudhry Khalid Munir, Mujahid Pervaz Chattha, Nasir Mahmood Sheikh, Raja Talib Mehdi Khan, Fahad Malik, and Major (R) Tahir Iqbal are proposed as candidates for the position of chairman of the IESCO Board of Directors.
For the IESCO Board of Directors, three names have also been submitted that is Malik Ghulam Mustafa Kandwal, Naeem Iqbal, and Adnan Enver Baig.
Additionally, it is suggested that the new BoD of IESCO include one person from the electricity division, one from the finance division (not below the rank of Deputy Secretary/Joint Secretary/Additional Secretary), and one from the Government of Punjab (not below the rank of Bs-19) as Ex-officio.
The names of Engineer M. Babar Ikram, Raja Ameer Hamza, Iftikhar Ahmed Ansari Nauman Khalid, Muhammad Momin Junaid, and Rab Nawaz have been proposed as Independent Directors for the FESCO BoD.
Muhammad Humair Hayat Khan, Ali Ranjha, and Mian Farrukh Iqbal have been proposed as Consumer Representatives for the FESCO BoD.
The proposal for the new BoD of FESCO includes one representative from the electricity division, one from the finance division (not below the post of Deputy Secretary/Joint Secretary/Additional Secretary), and one representative from the Government of Punjab (not below the rank of Bs-19) as Ex-officio.
Mian Waqar Aziz is suggested as the new LESCO BoD’s chairman, and the names of Hafiz Muhammad Nouman, Ghias Uddin Ahmed, S. Muhammad Ali A Sadiq, Jahanzaib Badar, Mujahid Islam Billah, MA Goraya, and Ahmed Bakhsh Tarar are suggested as the organization’s independent directors.
Ch. Arshad Iqbal, Saad Rao, and Faisal Khokhar are proposed as the nominations for the new LESCO BoD also include one person from the electricity division, one from the finance division (not below the position of Deputy Secretary/Joint Secretary/Additional Secretary), and one from the Government of Punjab (not below the rank of Bs-19) as Ex-officio.
Minister for Energy (Power Division) has seen and authorized the submission of this summary, said sources.
The administrative line ministry for 10 electricity distribution corporations is the Ministry of Energy (Power Division) (DISCOs). A BoD chosen by the government in accordance with Section 165 of the Firms Act, 2017, governs the owners of these companies (DISCOs) in accordance with the rules of the Public Sector Companies (Corporate Governance) Rules, 2013, and the Companies Act, 2017.
As per CGR, 2013, each of these Boards of Directors has independent directors who account for at least one-third of the board’s total members and who meet the Fit and Proper Criteria, which include, among other things, that the individuals be graduates, be reputable individuals of good financial standing, be free of any judgments, have no conflicts of interest, and not hold any political office.
They must also be registered with the Pakistan Institute of Corporate Governance (PICG) as required by Section 166 of the Companies Act.
The current BoDs of IESCO, FESCO, and LESCO were established in December 2020 for a three-year term, and consumer representatives were selected to serve on these boards in May 2021.
A performance contract was also signed in accordance with CGR, 2013, between the BoDs of IESCO, FESCO, and LESCO and the Ministry of Energy (Power Division).
However, the Power Division saw the necessity to reassemble the BoDs in order to improve the performance of DISCOs (including IESCO, FESCO, and LESCO) after carefully evaluating their performance.
To narrow down the qualified individuals who satisfy the Fit and Proper Criteria and are registered with PICG, the Minister for Energy (Power Division) undertook a thorough consultative procedure.
Including consumer representatives, the shortlisted candidates all fall under the category of Independent Directors.