HBFCL MD in hot water days before his retirement

The House Building Finance Company Limited (HBFCL) has asked its managing director, Pervez Said, to repay his excess salary amounting to Rs 6.94 million by May 12, the last day of his contract. According to the letter, at its meeting on April 6, HBFCL's board of directors discussed Pervez Said's salary package with reference to the State Bank's special inspection report.
The directors established that he was drawing emoluments in excess of the approved package, and this was clear and unambiguous and its implementation was imperative. It said that as of April 26, "the managing director drew Rs 12.92 million during his tenure, which was in excess of his approved entitlement," adding that "dues owed to him by HBFCL including, but not limited to, monthly salary and terminal benefits, an amount of Rs 6.94 million becomes payable by him to HBFCL."
The letter asked the managing director to settle the excess amount drawn by him, together with all company assets in his use, by his last working day. The decision was made in the light of the State Bank's special inspection report, which revealed that complaints were received by the State Bank. The reports dealt with the professional conduct of Pervez Said as managing director, particularly on the issue of salary/allowances which he availed from the company.
It was found that Pervez Said had availed of, or was continuing to avail, benefits which were in contravention of the salary package approved by the board of directors. The report said that the inspection findings were shared with Pervez Said, and advised him to explain his position. His response was examined and found unsatisfactory, it said.
The report said the MD drew a salary over and above the approved basic salary during 2015 and 2016 and availed Leave Fare Assistance (LFA) during that period, without approval by the board of directors. In addition, he lived in a house belonging to HBFCL, receiving house rent at the same time, report added. The State Bank report said Pervez Said was also availing an excessive entertainment allowance and salaries for four servants without the board's approval. He paid club bills in addition to club subscriptions.
The report termed the conduct of Pervez Said as completely unacceptable and advised the federal government to consider his removal and appoint a suitable replacement.When contacted, Pervez Said termed the letter illegal and unwarranted, saying that the Board in its meeting on April 6 decided to revise his package downwards and made it effective from his date of joining, which could not be done and won't stand the test of law. "Additionally, I have been drawing the package that was approved by the Board earlier when I joined. Ministry of Finance and SBP was notified of the package approved by the Board earlier at the time of my joining.
"Before a payment is made to me, it goes through the process of pre-audit, compliance and then post audit. On top of that we have regular internal audit, external audit and the commercial audit by Auditor General of Pakistan," he added. He said that HBFCL's audited accounts until 2015 were available on its website and none of these audits mentioned any overdrawn salary or perks on his part.
"Therefore, it is next to impossible for anyone in the company to overdraw their compensation package taking into account the numerous checks, internal and external," Pervez Said said. According to him, the whole affair was being orchestrated by the HBFCL labour union because of the organizational changes he had made to make HBFCL efficient and to curtail corruption.
Moreover, he said that he undertook a voluntary separation scheme and reduced the staff by 224 people because last year's salary bill was higher than the revenue. According to him; the union was conniving with some of HBFCL senior members who were supported by some Board members, to orchestrate what he called "this illegal and unethical drama" with the aim of persuading the authorities against renewal of his contract.