ISLAMABAD: A parliamentary panel, on Monday, deferred discussion on the bill titled, "The Privatization Commission (Amendment) Bill, 2021" and proposed few amendments. The Senate Standing Committee on Privatisation started with reconsideration of the bill moved by Minister for Privatisation in the Senate sitting held on 23rd June 2021.
The committee members received a detailed briefing from the ministry officials on the proposed amendments in the bill. Senator Sabir Shah, while expressing his reservations on the bill said that "Bypassing cabinet and empowering an individual the Prime Minister is against the norms. Amendments will result in withdrawal of collective wisdom. If we go ahead with these amendments, it would set a wrong precedent".
Ministry officials answered that proposed amendments have no effect on process of privatization. We go to the cabinet three to four times during the whole process of privatization. This is by no means limiting the powers of the cabinet. Word, Government, is mentioned in the Privatization Act, 83 times. We have just decided to replace the word in four places, which will give power to the prime minister to make appointments in the Privatization Board.
As per existing definition of Government and Act, we have to go cabinet for even small petty tasks such as account opening. These amendments are aimed at removing these bottlenecks, informed officials from the Ministry of Privatisation. Consideration of the bill was deferred by Committee members after due deliberations.
The committee was briefed in detail regarding privatisation of Services International Hotel, Lahore. Secretary Privatisation Commission informed the committee members that privatisation of Services International Hotel is in final stages and the matter is to be laid before the cabinet for final approval.
Bidding has taken place through an open auction. Two bidders submitted the bids for the reserved base price of 1.94 billion. Commission received one bid higher than the reserved base price amounting to 1.95 billion, other one was below the reserved price and subsequently did not qualify.
The chairman Committee questioned the officials regarding the process of privatisation as to how a bid is considered successful when minimum number of bidders were not there for auction to which the ministry officials answered that there is no legal issue with regards to minimum number of bidders in an open auction. The ministry officials reiterated their stance that bidding was done as per law with complete transparency.
Senator Sabir Shah said that "It is a commercial property and we believe that reserved base price of 1.94 billion rupees is very low". Committee members were of the view that issue needs to be probed further. The chairman Committee directed to write a letter to the Cabinet in order to inform them of the reservations of the committee members on the issue.
It will be requested that final approval of the privatisation should not be given by the cabinet pending decision of the Senate Standing Committee. Discussion on the matter was deferred to be taken up again in the next meeting of the committee.
The Committee was also briefed on the privatisation of Pak-China Fertilizer Company, Haripur, KPK with regard to its present status, outstanding amount payable to government, reasoning for delay in its privatisation and expected date of its functioning. Employee status and future plans of the government for the said fertiliser company.
The secretary Privatisation Commission, while briefing the committee members said that "90 percent of the shares of PCFC were sold to M/sSchon Group vide sale agreement dated 26-05-1992, for total consideration sale price of rupees 456.84 million. Of which 40 percent sale price was paid by the buyer amounting to 182.736 million rupees. The total outstanding sale amount till August 31, 2021 is Rs2.8 billion. There are multiple litigations going on regarding the fate of this property. Commission is currently perusing the case in the Islamabad High Court.
Senator Fida Hussain apprised the committee members of the dismal situation on ground in Haripur of the said property. Senator Hussain lamented lack of action from the ministry officials regarding multiple attempts of encroachment and theft of scrap worth billions of rupees.
He further expressed his discontent regarding the fate of employees who still have not received their due compensation even after 30 long years. Senator Sabir Shah also weighed in on the current status of the said property. He said that "it is our duty to protect public property and we will do whatever it takes to solve this issue".
The chairman Committee directed to summon the deputy commissioner,Haripur, in next meeting of the committee along with the complete details of the current situation on ground. The committee also deliberated upon the idea of setting up a sub-committee in order to visit the site and take count of the alleged mismanagement.
Copyright Business Recorder, 2021
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