name='verify-v1'/>"> MediaTrial: SECP - A sinking Titanic!

Tuesday, June 28, 2011

SECP - A sinking Titanic!

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 Sailor to sink SECP

Courtesy:Jawwad Rizvi
The News

LAHORE: The federal government is again ready to ignore the ruling of the Supreme Court on appointment of contract employees as the Securities & Exchange Commission of Pakistan (SECP) is all set to reappoint its former advisor (Legal) Abdul Rehman Qureshi on the same position.

The News has learnt that the SECP has moved a summary for reappointment of former advisor (Legal) Abdul Rehman Qureshi from July which is also a violation of the SECP Act 1997 and the SC decision on reappointment of retired employees.

Interestingly, the federal finance division also dodged the SC in this particular case as it had not included Abdul Rehman Qureshi's name in the list provided by it to  the Supreme Court regarding the contract employees.

The sources in the Commissions said that Abdul Rehman Qureshi was a federal government employee and was inducted in the SECP as Commissioner - Company Law in 1999. He was given first extension in 2002 for three years till 2005. Later, after reaching age of retirement in 2006, he was rehired by the SECP in 2005 as advisor (legal) for a three year term which ended in 2008. The journey of his reappointment in the SECP did not end in 2008 as the Commission chairman again appointed him on the same post for another three year term, from 2009 - 2011.

Internaland External Communication of the SECP head Shakil Ahmad Chaudhry said that the Commission was not reappointing Abdul Rehman Qureshi as advisor. He stated that the SECP had moved summary to extend his employment for one year under Section 8 and 9 of the Securities & Exchange Commission of Pakistan, Act, 1997. "The move was in accordance with the regulation and decision of the SECP Board", he claimed. The sources in the SECP said that reappointment of the advisor was also sheer violation of the SECP Act, 1997 barred any government official member of the SECP or SECP Chairman to appoint advisor or consultant on his own. As Section 9 of the said Act reads: 
"Appointment of advisers and consultants:-
  1. Subject to sub-section (2), the commission may, employ and pay consultants and agents technical, professional and other advisers including, without limitation, bankers, stock-brokers, surveryors, valuers, actuaries, accountants, lawyers and other persons to transact any business or to do any act required to be transacted or done in the exercise of its powers, the performance of its functions or for the better implementation of the purposes of this Act.
  2. The decision to employe and the terms of employment of external advisers and consultants shall be made by the Commission in accordance with such policy guidelines as the commission may, in consultation with the Board, establish from time to time".
The sources disclosed that Abdul Rehman Qureshi during 2009-2011 had been getting very handsome salary ie Rs.450,000 per month besides two Commission maintained cars with 400 liter petrol and other perks. The alleged that he was not elligible to be appointed as advisor (Legal) since he was not a lawyer by profession.


Anonymous said...

The news is very interesting. The man cited in this article, has been working in Kohinoor Group. He was selected in erstwhile CLA as Assistant Registrar of Companies, Company Registration Office, Lahore. According to the sources that he has been looking after the interest of above said group of companies. Muhammad Ashraf, Company Secretary of the KGoC has been liaison on behalf of its group. Abdul Rehman Qureshi, then met a joiner level official Muhammad Amin Hashmi who has been working in Industrial department, govt. of Punjab at Poonch House, near chuburji, Lahore. He, Amin Hashmi and one more gang article Ahmed Muzzamil get together and make triangle and leadership handedover to Amin Hashmi.

According to reliable sources, Abdul Rehman Qureshi, as a Registrar, has been getting bribe in terms of registration of news companies, registration of charge cases, issuance of certified copies, registration of other statutory documents. The rate was then started from 50/- to Rs. 1000 and according to the situation of case.

Abdul Rehman Qureshi has been used to put pressure on the to bureaucracy to remain in CLA now SECP through black mailing tactics as number of bureaucrats have been doing (unlawfully) businesses by making companies under the Companies Ordinance, 1984. This idea was invented Muhammad Amin Hashmi and Ahmed Muzzamil (both have been retired from CLAS/SECP). The conduct of later was told as a patient of hysteria, now-a-days.

MediaTrial. said...

PRESS RELEASE published in Daily Pakistan Today on its 29th June 2011's edition says:

ISLAMABAD - Securities and Exchange Commission of Pakistan (SECP) has issued a clarification on a news item published in Profit on June 24 titled “SECP pushes for favoured advisor”.
SECP maintains that it is important to clarify that the SECP has neither flouted nor ignored any ruling of the honorable Supreme Court on the appointment of contractual employees.
The facts of the case are presented as follows: The SECP is an autonomous ‘body corporate’ established under the 1997 Securities and Exchange Commission of Pakistan Act (SECP Act) and it is not an attached department of any ministry. Abdul Rehman Qureshi, an employee/member of the erstwhile Corporate Law Authority (CLA) was appointed as SECP Commissioner with effect from January 1, 1999 upon the establishment of the SECP under the SECP Act. He completed his two terms as Commissioner on December 31, 2004.
He was also assigned acting charge of Chairman, SECP for a period of nine months. Qureshi being a regular employee of the SECP continued his service as Advisor till the date of his superannuation i.e., July 6, 2009. He was appointed Advisor by the SECP on contract beginning from July 7, 2009 for a period of two years as per provisions of the SECP Act and the SECP service manual. Meanwhile, he was also assigned the additional charge of Secretary to the Commission and also for its Policy Board as no substitute was available at the time. Qureshi possesses vast experience and expertise in the administration of corporate laws and is rendering a valuable service to the SECP in the capacity of advisor.
The SECP is empowered to appoint any advisor in terms of the provisions of Section 9 of the SECP Act and as per the policy guidelines prepared by it in consultation with the Securities and Exchange Policy Board
and there has been no violation of the laid down procedure.

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