LAHORE: In order to circumvent full scrutiny by its Board of Directors (BoD), the Lahore Electric Supply Company (LESCO) has scheduled a meeting of its presently ‘truncated’ BoD on July 10th, 2024 to consider and approve various non-emergent items.
According to well-paced sources, the meeting has been called after all the nine independent directors, barring Faisal Hayat and Jehanzeb Badar – both political nominees, resigned early last month. LESCO is an Rs1.32 trillion revenue-based company with 5500 megawatt load requirement, larger than K-Electric.
It is pertinent to mention that independent members of BoD including Mujahid Islam Billah, Ghiasuddin, Sami-Ul-Haq Khilji, Saad Rao, Hafiz Muhammad Nouman, Ahmad Baksh Tarrar, Mahmood Akhtar Ghoraya, Dr Ali Ayaz Sadiq and Faisal Ayub had tendered their resignations early last month after Power Division had charged the LESCO Board for causing losses to the exchequer.
Sources said the LESCO’s BoD has become redundant for all intents and purposes because of these mass resignations, especially when SECP’s relevant rules and SOEs Act stipulates necessary availability of independents members for Board meetings and ensuing decision making.
Furthermore, they added, with the above mass resignations, various committees including HR & Admin, procurement, safety and HSE; etc., have lost their chairs and the members.
The items of agenda relate to the subjects of approval of corporate budget for FY 2024-25, annual procurement plan relating to STG material/ distribution material / deployment of AMI system in LESCO, age relaxation for under recruitment applicants, performance agreements and contracts progress of FY 2023-24 and the most important approval of financial statements for the calendar year 2023. These items are planned to be discussed and approved, whereas necessarily the basic requirement is for the Board committees to deliberate and discuss the issues first and then provide their in-put to the BoD including recommendations barring which no decision can be made being the spirit behind the setting-up of various BoDs committees.
According to insiders, certain promotions cases will be put-up in the proposed meeting of 10-07-2024, which have not been considered by any of the committees and according to information not even merited.
Sources have also confided that Minister of State for Power Ali Pervaiz Malik had visited LESCO two days ago where he was very harsh with the CEO and his team for interruptions and break downs of the system, particularly in the Metropolitan Lahore. On being told that poor service was because of non-availability of utility vehicles, due to which LESCO was unable to serve its consumer base. The CEO was castigated as non-availability of equipment was the management’s fault.
The minister further directed for immediate improvement within a week’s time. He further informed the LESCO management that the new Board will be notified within a weak. However, ignoring the Minister’s remarks, LESCO’s management has proposed meeting of its incomplete board on 10-07-2024, when it is feared that all important items will be got through without the resigning of independent members of the BoD.
Copyright Business Recorder, 2024
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