Fate of KPT chief tied to audit of stores, hospitals

The Federal Cabinet has reportedly linked action against Chairman KPT with the outcome of special audit of KPT stores and hospitals to be conducted by an audit firm selected through competitive tendering process, well-informed sources told Business Recorder.
On May 12, 2020, the Maritime Affairs Division apprised that it moved a summary on irregularities in KPT on March 19, 2020 with the proposal to remove the incumbent Chairman Karachi Port Trust (KPT), Rear Admiral Jamil Akhtar (Retd) forthwith by modifying/reducing his period of initial appointment in terms of Section-11 of KPT Act 1886.
On March 20, 2020 Federal Cabinet approved the proposal and Establishment Division subsequently issued the notifications of removal of Chairman KPT and assigning additional charge of Chairman KPT to Shakeel Ahmed Mangnejo. Subsequently, Rear Admiral (R) Jamil Akhtar challenged his termination/removal before the Islamabad High Court (IHC), which granted injunction against his removal on March 27, 2020 without hearing the Federation.
Protracted litigation ensued in the light of which, the matter was extensively deliberated by the Minister for Maritime Affairs and Secretary Maritime Affairs with the Attorney General for Pakistan (AG).
It was opined by the AG that though government has statutory authority to remove the Chairman KPT, yet it would be more appropriate to provide adequate opportunity of hearing to Chairman KPT in view of the settled principles of natural justice as consistently upheld by the superior courts.
The AG advised that notification of termination be withdrawn in order that the petition be disposed off. Subsequently, Maritime Affairs Division would be at liberty to seek legal advice from the Law & Justice Division, on the basis of information available on record including audit of KPT stores and audit conducted by Director General (Federal) Audit.
On the basis of such potential financial impropriety, legal action may be initiated against the Chairman KPT, if so warranted. Moreover, AG further advised that the audit of KPT under the provisions of sections 62,68,79 & 79 - A of the KPT Act, 1886 requires approval/ratification of the Federal Cabinet in terms of the decision of the Supreme Court of Pakistan in the case of Mustafa Impex vs Federation of Pakistan PLD 2016 SC 806.
Accordingly, on the request of the Ministry for Maritime Affairs, the AG appeared before the Islamabad High Court on April 16, 2020 and the petition was disposed of in order to avoid further litigation as smooth functioning of Karachi Port is essential, especially in the context of economic challenges posed by COVID-19 and seaborne trade scenario and at the same time to meet the principles of natural justice.
In view of the confronting situation , Ministry of Maritime Affairs sought the approval of the Cabinet to the following: (i) notifications of removal of Rear Admiral (Retd) Jamil Akhtar as Chairman KPT and assigning of additional charge of Chairman KPT to Shakeel Ahmed Mangnejo in his place issued by Establishment Division may be withdrawn;(ii) ex- post facto approval may be granted for conducting / completion of audit of KPT stores and KPT hospital through audit firm selected through competitive tendering process and engaged by KPT;(iii) Auditor General of Pakistan to get special audit conducted of KPT stores, KPT hospital & investments made by KPT for the last five years;(iv) based on irregularities highlighted in audit reports issued by DG (Federal) Audit and the audit conducted by the firm pertaining to KPT stores, the Chairman KPT along with KPT employees may be proceeded against under the KPT Act, 1886, after affording adequate opportunity of hearing to Chairman KPT and any employee of KPT in accordance with the law and ;(v) Chair an KPT along with KPT employees would b e proceeded against under the KPT Act, 1886, if the irregularities, if any, are highlighted by the Auditor General in its report pertaining to special audit.
During the ensuing discussion, the members of the Cabinet were of the view that a fresh audit of KPT stores and KPT hospital be conducted through an audit firm selected through competitive tendering process.
After detailed discussion, the Cabinet decided to withdraw termination notification of Chairman KPT with the direction that fresh audit of KPT stores and KPT hospital be conducted through a renowned audit -firm, to be selected through competitive tendering process.