The Board of Directors (BoDs) of Pakistan Engineering Company (Peco), a subsidiary of Ministry of Production, has reportedly undone most of the actions taken by the Managing Director, Brigadier Bilal Ahmad Khan (retired), well- informed sources told Business Recorder here on Thursday.
Brigadier Bilal, who was serving as Managing Director National Fertiliser Marketing Limited (NFML), transferred and posted as Managing Director, Peco. He took charge of his new assignment with effect from July 21, 2011. However, Peco's Board ratified his appointment for three months only, ie up to October 20, 2011. The following actions, which Brigadier Bilal took during the period from July 20 to September 27, 2011, were placed before the Board for ratification.
First, Brigadier Bilal had inducted 51 officers and removed some from service. The Board, however, in its resolution said that all the terminated employees were to be treated as if they were under suspension until an HR committee headed by Muhammad Iqbal (Director) reviews the new appointments.
Second, shifting of Head Office from Mall Road to Kot Lakhpat works and 90 percent of the office was shifted to cut down the cost of running and maintenance of the office and to ensure better co-ordination. The Board referred the matter to the Finance Committee to examine whether there is any material saving from the transfer. Necessary documents were, however, advised to be kept at the Mall Road office, as required under Section 230 of Company's Ordinance 1984.
Third, disposal of fixed assets through a tender in August, 2011, wherein scrap, machinery, etc, worth Rs 20.560 million was offered for sale. The Board did not approve the transaction. Meanwhile, the successful bidder has lifted material worth Rs 2.857 million and has now served legal notice.
Fourth, lease of land for cultivation against the present lease of Rs 8000 per acre/ annum, the land was proposed for leasing at Rs 46,000 per acre per annum. The Board appreciated the rate. Government Commercial Auditors have also given their observations during Special Audit in December, 2011 on the earlier deal. Fifth, change of bank signatories, which the Board resolved to review the proposal by Muhammad Iqbal (Director), but this measure was later approved.
Sixth, opening of a bank account with Summit Bank with a deposit of Rs 7 million. The Board did not approve the resolution and ordered immediate closure of the account, withdrawal from Summit Bank and deposit of the amount in UBL. Seventh, change of Peco representative in LCCI, however, the nomination of Brigadier Bilal was not approved by the Board.
Eighth, dismissal of Executive Director, (Liaqat Muhammad) who Brigadier Bilal as MD, was competent to terminate. The Board, however, noticed misappropriations, constituted a two-member inquiry committee, headed by Rashid Ali Khan (Director) and decided that meanwhile, termination of Liaqat be changed to suspension. Liaqat is performing as Executive Director from September 28, 2011 till further orders.
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