ISLAMABAD: The Federal Cabinet has terminated the contract of Chairman Export Processing Zone Authority (EPZA), Shafqat Ranjha, for allegedly creating hurdles for the existing investors, sources close to Minister for Industries told Business Recorder.
On December 1, 2020, Industries and Production Division informed the Cabinet that Section 6(1) and 2 of the EPZA Ordinance stipulated that Chairman and members of the Authority were appointed by the Federal Government. The vacant post of Chairman EPZA was advertised through print media in leading newspapers on July 7, 2019. Applications were received and five candidates were shortlisted for interview by the Selection Committee as per instructions of Establishment Division's O.M. of March 28, 2019. The panel of three candidates was referred to Cabinet for appointment of one. Shafqat ur Rehman Ranjha was appointed as Chairman EPZA with the approval of Cabinet in MP-1 scale vide Establishment Division's Notification on February 19, 2020. He assumed the charge as Chairman EPZA from February 20, 2020.
According to sources, since Shafqat ur Rehman Ranjha assumed the charge of the post of Chairman EPZA, various purportedly verbal and written complaints by investors had been received in the Ministry alleging that the Chairman and the management were creating hindrances in the smooth functioning of industries already established at EPZA. The latest of such complaints was the one reportedly filed by Mustafa Hernani, a Board member, stating with "documentary evidence" that the conduct of the incumbent Chairman was not appropriate. A reference from Prime Minister's Office had also been received for views/comments and the problems faced by the investors of EPZA. And 84 investors are said to have also submitted written complaints to the Minister for Industries and Production against the chairman EPZA.
A meeting under the chairmanship of Secretary, Industries and Production Division was convened to discuss the issues in detail with Chairman EPZA on November 25-26, 2020, which was attended by Chairman and Secretary, EPZA.
The sources further stated that it had been observed that Chairman, EPZA had "failed" to deliver the task assigned to him, i.e. to resolve the problems of, investors of EPZs due to non-adherence to rules and procedures of the Authority and lack of control over administration management, which was purportedly reflected in acts of omission and commission .
The MoI&P argued that investors had alleged that EPZA had eased the development of phase-III of KEPZ resulting in loss of a huge investment made by businessmen. In his response, the Chairman had stated that the Board of Directors approved scrapping KEPZ phase-III project. Whereas the perusal of decision of Board purportedly showed that the project had not been scrapped and the Board had just noted the procedural irregularities in the zone and had asked EPZA Management to "redo it - according - to" proper procedure.
The Chairman also increased the ground rent from existing 35 cents to 70 cents per sq. foot and thereafter, reduced it to 50 cent vide a circular of November 09, 2020. As per investors complaints, the said letters were issued without authorization by the Board and without consulting them. After examination of the record, it had "transpired" that there had been no BoD decision in this regard and the Chairman "could not" produce any document showing effective consultation with the stakeholders.
On inquiry, the Chairman stated that the management keeps issuing letters without his approval. Whereas, during the meeting, many letters issued by the management were purportedly also shown to the Chairman, which included that these have been issued with approval of Chairman. Some of these had "increased" the transaction cost and created "bottlenecks."
There had been increasing reports of dumping of industrial waste by the factories both in common area as well as inside the factories, which was hazardous for health. Fire incidents had also taken place in the last few months "without" adequate and timely addressal by EPZA management.
The Ministry contended after receiving all relevant documents that the services of Shafqat ur Rehman Ranjha, Chairman EPZA, may be terminated with immediate effect with payment of one month basic pay in terms of Para 2(7) of Finance Division O.M of July 14, 2017. The Cabinet approved the proposal to terminate the services of Shafqat ur Rehman Ranjha, Chairman EPZA, with immediate effect with payment of one month basic pay.
The Cabinet further directed that the additional charge of Chairman EPZA may be assigned to Rizwan Ahmed Bhatti, CEO Pakistan Industrial Development Corporation (PIDC) for a period of 3 months and in the meantime the process for regular recruitment be initiated by the Ministry of Industries & Production at the earliest.
Copyright Business Recorder, 2020
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