ISLAMABAD: The Federal Government has decided to hire Chief Executive Officers (CEOs) of power Distribution Companies (Discos) from the market, sources close to Minister for Power told Business Recorder.
However, Power Division wants to retain the services of three retiring CEOs of Discos Iesco, Lesco and Mepco till the completion of hiring process of CEOs from the private sector, the sources added.
Sharing details, sources said there are ten Distribution Companies under the administrative control of Ministry of Energy (Power Division). These Discos are Public Sector Companies (PSCs) as defined under Section 2 (1) (54) of the Companies Act, 2017 (the Act) and Rule 2 (1) (g) of the Public Sector Companies (Corporate Governance) Rules, 2013 (the CGR).
The matters of appointments of the CEOs of such PSCs are governed under Sections 186, 187, 188 and 189 of the Act, Rule 5(2) of the CGR and the Public Sector Companies (Appointment of Chief Executive) Guidelines, 2015 (the guidelines) and fit and proper criteria framed thereunder. Presently, these Discos are headed by the General Managers (GMs)/Chief Engineers (C.Es) posted in various Discos on assignment of look after charge basis as a stop gap arrangement on temporary basis. Power Division has now proposed that the appointments against the positions of CEOs of these Discos may be carried out on a regular basis. Section 187 of the Companies Act, 2017 read with Rule 5(2) of the CGR and the relevant paras of the guidelines as mentioned above lays down that the BoD shall carry out the recruitment process including advertisement and shortlisting on fit and proper criteria and furnish a panel of at least three candidates to the line ministry for submission of the case to the Federal Government after due deliberations at the level of the line ministry. The sources said the Chief Executive may be appointed on terms and conditions as may be determined by the Government as per Section 188 (2) of the Act. Power Division intends to get the process of recruitment initiated against the positions of CEOs of Discos in accordance with uniform guideline for the Discos Boards containing uniform job requirements and terms and conditions as follows: (i) the candidate must possess at least 20 years’ experience including at least 10 years working in Power Sector, with at least 3 years’ experience at senior management positions; (ii) candidate must possess a bachelor’s degree in Engineering with a Master’s degree in Engineering or Business/Public Administration or Management or Economics or Finance; (iii) the candidate must not be more than 62 years of age on the date of advertisement;(iv) salary and allowances as permissible to MP-I scale (at the initial stage hiring shall not be under MP scale policy, MP-I scale is for indicative purpose only) and ;(v) the initial contract shall be for a period of three years, with annual performance evaluation to be conducted by the respective Boards.
Power Division, sources said, has further proposed that Shahid Iqbal Chaudhary, Mujahid Pervez Chatta and Mohsin Raza Khan have been working as Chief Executive Officers of IESCO, LESCO and MEPCO, respectively, since November 2, 2018, February 5, 2018 and August 13, 2020, respectively. These officers are retiring on superannuation on December 10, 2020, January 09, 2021 and January 14, 2021, respectively. "Since the process of recruitment of CEOs is being initiated, Power Division has proposed to allow these officers to continue holding these positions till appointment of a regular Chief Executive Officer or for 90 days, whichever is earlier," the sources added. In the case of Shahid Iqbal Chaudhary, the approval may be with effect from December 11, 2020, since he retired on December 10, 2020. This proposal is in line with Section 187 (3) of Companies Act, 2017.
According to sources, Ministry of Law and Justice has opposed extension to CEOs of three Discos, who are a retiring or retired. Establishment Division has opposed hiring of CEOs on a three-year term initially.—MUSHTAQ GHUMMAN
