ISLAMABAD: The Senate, Friday, passed with majority vote amidst opposition protest, the State Owned-Enterprises (Governance and Operations) (Amendment) Bill 2024, which empowers the federal government to remove the directors serving in the boards of state-run entities on the recommendations of the related panels comprising of senior government officials.
Law Minister Azam Nazeer Tarar moved the bill that originated from the upper house and was already cleared by the relevant standing committee, in the Senate session.
The bill mainly seeks to amend the State-Owned Enterprises (Governance and Operations) Act 2023 to insert a new provision in Section 13 which reads that the federal government may “remove a director or directors on the recommendation of the board nominations committee” concerned in the boards of the SOEs.
Amendment to SOEs law approved
The said committees, under Section 10, are to comprise of the minister concerned, the secretary concerned as well as the secretary finance
Taking the floor, Tarar said that the bill aimed to remove those individuals whose official performance was not satisfactory. “Those directors who are in the boards of certain state-run entities and are doing nothing— this bill is for them— to take them to task in order to ensure good governance,” he said.
Barrister Ali Zafar from Pakistan Tehreek-e-Insaf (PTI) said that the bill aimed to serve the vested interests of the incumbent government functionaries.
Chairman Senate Yousaf Raza Gilani responded that the bill was cleared by the relevant standing committee after a detailed review.
“They are selling some government entities so they have brought this bill,” Zafar said, adding that the bill would allow the successive governments to remove the board of governors appointed by the previous governments.
Apart from that, Leader of the House in Senate Ishaq Dar proposed the formation of a committee to probe the debacle involving proposed privatisation of Pakistan Steel Mills (PSM). “$800 million that were to arrive here— never came— and the non-privatisation of the steel mill resulted in the loss of hundreds of billions of rupees,” he said, speaking on the floor of the house.
Dar said he would assure transparency in the privatisation of the relevant government enterprises, as head of federal cabinet’s privatisation panel. “I would not allow any practice that is against the law,” he said.
Power Minister Awais Leghari said the board of directors of distribution companies (Discos) in power sector were appointed before the SOEs law was passed. He said the privatisation policy and regulatory process regarding Discos is in the process of formulation. He denied that the privatisation was discussed by any BoD. Leghari said the SOEs law is aimed at ensuring an effective check and balance in the state-run entities.
Information Minister Atta Tarar said the newspapers received advertisements of Rs 9 billion rupees and television channels received advertisements worth Rs 6 billion in the last five years. He denied that the government stopped advertisement of any channel. The advertisements are given to TV channels keeping in view their ratings, Tarar said. The house was prorogued.
Copyright Business Recorder, 2024
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