MUSHTAQ GHUMMAN

ISLAMABAD: The Board of Directors (BoD) of National Industrial Parks (NIP) Development and Management Company has terminated the services of the company’s Chief Executive Officer Mudassar Iqbal, who is accused of involvement in wrongdoings, well informed sources told Business Recorder.

A couple of months ago, Mudassar Iqbal, who was General Manager in EDB tendered his resignation, after an intra-court appeal against his appointment was rejected.

NIP Board BoD recommended to the Secretary Industries and Production (MoI&P) to remove the CEO for allegedly extending undue financial favour to a select few companies.

The Board sought replies from the CEO on questions raised in an enquiry report initiated in the wake of allegations made in the complaints received and queries raised.

However, the Board argued that although Mudassar Iqbal presented a set of documents as an explanation he was unable to respond to actual queries; thus his reply remained ambiguous/evasive and NIP’s financial losses of Rs 1.99 billon as pointed out in the inquiry report were due to his unilateral decisions and remain unexplained.

The CEO was also unable to explain three different treatments given to three defaulting plot applicants bringing a loss of Rs 800 million to NIP through preferential treatment given by him unilaterally to one applicant (KIA Lucky Motors). The Board expressed its anxiety at remedial measures being thwarted if he continued to occupy the CEO position of the company.

The Board asked for justification for the waiver of Rs 800 million in the case of KIA Motors given the current supercharged accountability atmosphere prevailing when the other two parties ie M/s Naveena Export Limited and M/s Hiltan Pharma (Pvt) Limited considered on the same date of allotment were denied equal benefit.

CEO NIP himself attended the Board meeting in which he was asked to explain KIA’s case, and he replied: “I, as CEO-NIP, have executive power which I exercised while granting relaxation/foregoing payment of new price/permission to KIA and it is not in the domain of BoD as BoD can only give policy guidelines. Further such things have been done before. I took this decision in view of the larger interest of the company considering that KIA’s presence in the park would help attract investment.”

The sources said that the case of Mudassar Iqbal has been under consideration in the Ministry of Industries and Production for the last few months.

However, on June 6, 2018, Chairman NIP Board, in a letter addressed to Mudassar Iqbal said “in pursuance of the recommendations of NIP, Board and thereof, the decision of the Ministry of Industries and Production communicated through a letter of June 6, 2018 your services as CEO NIP are terminated with immediate effect”.

In accordance with para 4 of appointment, Mudassar Iqbal will be paid one month salary in lieu of the notice period.