The Federal Government has finally appointed Shabbar Zaidi Chairman Federal Board of Revenue (FBR)/ Secretary Revenue Division for two years through a separate summary moved to the cabinet "through circulation" on pro-bono basis, mainly to dispense the condition of advertisement and fear of contempt of court, well-informed sources in Establishment Division told Business Recorder. Chairman, FBR is appointed by Federal Government in terms of section 3 (3) of FBR Act, 2007. Federal Government has been defined as the "Federal Cabinet" in article 90 of the Constitution of 1973 and Supreme Court of Pakistan''s judgment of August 8, 2016 passed in civil appeal.
The Federal Cabinet was informed on May 7, 2019 that Selection Committee as per selection of senior officers held its meeting on May 6, 2019 in the office of Advisor to Prime Minister on Establishment. The Advisor on Finance, Revenue & Economic Affairs and recommended the name of Syed Muhammad Shabbar Zaidi, Chartered Accountant for appointment as Chairman, FBR/ Secretary, Revenue Division.
It was stated that the committee had observed that Islamabad High Court (IHC), in its judgment of June 5, 2013 in a writ petition number 812/2013 while setting aside notification of appointment of Ali Arshad Hakeem, as Chairman, FBR directed the Establishment Division, to appoint a regular Chairman FBR through competitive process after advertising the post. However, Ali Arshad Hakeem as Chairman FBR enjoyed all financial benefits of the post.
It was discussed that possibility of appointment of Syed Muhammad Shabbar Zaidi may be explored on pro bono/ honorary basis. The committee was of the view that the advice from Law and Justice Division may be solicited in this regard since Zaidi is from the private sector.
It was further informed that since pro bono appointments are being made by the Government without advertisement, such as Chairman, Prime Minister''s Inspection Commission (PMIC), Chairman NAVTIC, option of pro-bono appointment of Chairman FBR/ Secretary Revenue Division, without advertisement is worth exploring. Since express directions of the Court are in the field regarding appointment of Chairman, FBR, through competitive process, appointing Shabbar Zaidi without advertising the post as Chairman, FBR/ Secretary, Revenue Division may be tantamount to contempt of court.
Keeping this aspect in view, Establishment Division on May 6, sought the advice from Law and Justice Division on the following propositions: (i) whether or not Chairman, FBR can be appointed from private sector in terms of section 3(3) of the Federal Board of Revenue Act, 2007; and (ii) whether or not the post of Chairman, FBR is required to be advertised if the appointment is to be made on honorary/pro bono basis.
It was also stated that CV of Shabbar Zaidi showed that he engaged in representation before the FBR on behalf of clients for various clarification and reconciliations, which might be construed as conflict of interest if he is appointed as Chairman FBR/ Secretary, Revenue Division.
Establishment Division further stated that in view of the recommendations of Selection Committee, orders of the Federal Cabinet may be solicited on the following proposals after taking advice of Law and Justice Division on the propositions/ submissions: (i) Dr. Jahanzeb Khan (PAS/ BS -22) presently serving as Chairman, FBR/ Secretary Revenue Division, may be transferred and directed to report to Establishment Division, with immediate effect; and (ii) Shabbar Zaidi, Chartered Accountant, may be appointed as Chairman, FBR/ Secretary Revenue Division for a period of two years on honorary basis.
The Cabinet discussed the matter in detail and unanimously resolved that it is exceedingly important to appoint a suitable person as Chairman FBR on priority, to provide impetus to the revenue recovery during the remaining period of the financial year. Besides, other exceptional circumstances like the preparation of forthcoming budget for FY 2019-20 ongoing negotiations with International Monetary Fund (IMF) also necessitate immediate induction of a competent and professional person as Chairman FBR.
The Minister for Law and Justice informed the cabinet that on a reference received from Establishment Division, the issue has been examined in the Law Division. Accordingly, he suggested that the relevant law provided the Federal Government to appoint Chairman FBR from the private sector as well. He further opined that the requirement for advertisement can be dispensed with if the appointment from the private sector is made on pro-bono basis. Accordingly, he stated that the case of Ali Arshad Hakeem referred to by the Establishment Division does not apply in the case of Shabbar Zaidi. He further emphasized that no question of conflict of interest arises in case Shabbar Zaidi, Chartered Accountant, is considered for his appointment.
However, it is in the fitness of the things that the Establishment Division may re-submit the case after evaluating the credentials of Shabbar Zaidi on fit and proper criteria under Corporate Governance Rules, 2013.
After a detailed discussion, the Cabinet decided that Dr. Jahanzeb Khan may be transferred and directed to report to Establishment Division with immediate effect.
The Cabinet Division further decided that keeping in view the importance of the appointment and urgency in the matter and as advised by the Law Minister, Establishment Division shall initiate a separate summary for the Cabinet, through circulation, for appointment of Shabbar Zaidi, as Chairman FBR, against the resultant vacancy, after evaluating his credentials on fit & proper criteria laid down under Corporate Governance Rules, 2013, duly incorporating the view of the Law Division immediately.
Notification issued: Later, the federal government notified appointment of Shabbar Zaidi as new Chairman Federal Board of Revenue (FBR) on honorary basis and pro bono basis for a period of two years.
According to a notification issued by the Establishment Division here on Wednesday, the federal government has appointed Shabbar Zaidi as chairman FBR with immediate effect and until further order.
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