DGTO warns FPCCI: executive members' re-election results may be declared null and void

The Director General of Trade Organisations (DGTO), Ministry of Commerce, has warned the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) against allowing its executive committee members to contest elections without one year's break.
Taking "serious view" of the proposed changes, passed by the executive committee meeting of FPPCI held here recently, the DGTO in his letter sent to FPCCI on August 3 said that allowing its executive committee members to contest elections without one year's break "will be gross violation of the Rules which may result in declaration of election results as null and void abinitio."
The DGTO further clarified that "any office-bearer, or member of the executive committee, occupying the office or seat at present shall not be eligible to contest the next year's election."
The DGTO has also sent a copy of the letter to the Securities and Exchange Commission of Pakistan (SECP) requesting that any amendment in the memorandum and articles of association of FPCCI may not be entertained, as section 12 of Trade Organisations Ordinance prohibits the amendments unless its prior approval is solicited by the federal government ie Secretary Commerce.
The issue was brought to the notice of DGTO by Ghazanfar Bilour, Vice-President of FPCCI. He had informed the DGTO that despite his clear instructions to drop the agenda item regarding amendment in Article 13 of memorandum and articles of association of FPCCI, the executive committee not only discussed the amendment but also passed the proposed changes, allowing the existing members to contest the forthcoming elections.
"This act on the part of FPCCI is tantamount to disregard of the instructions emanating from the office of DGTO and needs to be looked into to establish the writ of the superior offices."
Ghazanfar Bilour had expressed hope that punitive action under the relevant laws governing the conduct of trade bodies would be taken against the management of FPCCI for "brazenly ignoring the instructions of DGTO and violating the Trade Organisation Rules 2007." He had requested that the decision made on the agenda item seeking amendment in Article 13 may be declared null and void and its subsequent passage from general body may be stopped.
In his August 3 letter, DGTO has referred to his earlier letter of July 19 on executive committee meeting of FPCCI, in which attention of the Federation was invited to DGTO's letter of May 28, according to which grant of permission to existing members of the executive committee of FPCCI on completion of their terms to contest next election, without a break of one year, was not permissible under the law/rules.
Following reasons were mentioned in this regard:
1 - President, Vice-President, Chairman, Vice-Chairman of the trade organisations assume the office every year as per Rule 23(12) of Trade Organisations Rules 2007. In addition, 50 percent members of executive committee of all trade organisations are taken over by the new set of people who may not like the previous nominations of the trade body to continue. If this is allowed, it will not only give birth to endless controversies but will also create disparity between the rights of the outgoing and incoming office-bearers.
2 - Organisational structure of FPCCI was purposely given separately in Rule 22 of Trade Organisations Rules 2007 after a thorough consultative process, keeping in view the associated implications.
3 - Request of FPCCI is not in consonance with Rule 22(4) and Rule 22(13)(a) of Trade Organisations Rules 2007 and may defeat the very objective of holding election every year.
4 - It is not appropriate to approve any amendment ie change in Rule 22(10) of Trade Organisations Rules 2007 at this juncture when Trade Organisations Ordinance is under process of enactment in the parliament.
The letter says that it has been brought to the notice of the Office of DGTO by Vice-President of FPCCI that the executive committee of FPCCI not only discussed the amendment but also passed the proposed changes, allowing existing members to contest the forthcoming elections.
The DGTO's office had clearly directed the FPCCI in its letter of July 19 that the item regarding amendment in Article 13 of memorandum and articles of association may be dropped from the agenda of the meeting of executive committee of FPCCI, but the directives were conveniently ignored.