PNSC suffers loss of 66.076 million by illegal appointment of 66 employees

By Nasir Mahmood

The Pakistan National Shipping Corporation had accumulated a loss of Rs 66.067 million due to irregular appointment of 66 employees on contract basis during 2014-15 and 2015-16. Informed sources disclosed that in accordance with audit report Establishment Division O.M No. 6/2/2000-R.3, dated 06-05-2000, Sl. No. 45-B states that: for projects which have a limited life, appointments may be made on contract basis by the prescribed appointing authority after open advertisement of the vacancies. The advertisement should indicate prescribed academic and qualification, experienced, age, provincial/ regional quotas, special quotas etc. where applicable, as per rules/ Government policy.

However, during the year 2015-16, it was observed from record that management had recruited 66 employees in the years 2014-15 and 2015-16 in violation to standing orders of the Government. Management framed the contradictory criteria for recruitment of Federal Government. It advertised the posts/ jobs as per self-made criteria. The self-made criteria which was advertised in Business Recorder & Express Newspapers dated 06-12-2015 was so deficient and contradictory to the rules that it neither mentioned age of candidates, academic and professional qualification of candidates and job description nor due representative quota of the regions/ provinces and special persons.

Thus, management appointed Deputy Manager, Assistant Manager, Junior Executive and Electrician in Grades/ Groups XIII to Grade IV without observing all the orders of the Government. Therefore, all the recruitments were irregular and doubtful. Moreover, the last date of submission of applications was 20th December 2015 but management received applications after the last date was expired thus it extended undue favor to the candidates.

Further the appointments were made without sanctioned strength and without job description and without observing regional/ provincial quota. Most of the employees who had been appointed were over-aged. Therefore, entire recruitment was irregular and unauthorized in Audit that caused a loss of Rs 17.860 million.

The sources disclosed that Siddiq Memon (Ex-Chairman of PNSC) recruited more than 45 employees in PNSC; most of them were relative of him. During NAB Inquiry by dishonesty of management; files of the following employees or data were not given to NAB in illegal hiring case:

The audit report prepared in 2017 disclosed that Agha Nizamuddin Pathan was hired on contract basis. He was 63 years right now he is 66 years aged, because he was relative of a political member Agha Siraj Durani. Zohaib Zafar’s appointment was as AM and promoted to DM on 01-09-2014. Mr. Sajjad was hired as Assistant Manager in H.R department but he had no experience of H.R. Most employees hired on contract during 2010 to 2015 had submitted fake experience letters. Col. Ashad Anwar (Ex-GM- Personnel/ HR) signed documents in back dates after his retirement by order of chairman.

No data was provided to NAB about those employees who were promoted during 2011 to 2015. Fahad Memon hired as Assistant Manager in H.R, had no experience of H.R he was nephew of ex-chairman Siddiq Memon, PNSC. Record of daily wages employees was not submitted to NAB. An official of NAB was provided with Toyota corolla with unlimited fuel and other daily expenses by PNSC management with dedicated staff at his disposal as bribe to mislead the ongoing inquiry.

Report also highlighted irregular appointment of Executive Director (Commercial) in fraudulent manner. It stated that according to Establishment Division O.M No. 4/1/96-R.I, dated 16-11-1996 (Sl. No. 30) entitled “Request for re-employment by officers retired voluntary” explained that Prime Minister has been pleased to decide that requests for re-employment of ex-civil servants, who had voluntary retired from service, shall be summarily immediately rejected. Ministries/ Divisions are advised not to initiate any such proposal in future.

Similarly, Establishment Secretary D.O letter No. 7/3/89-OMG-II dated 28-01-1989 entitled as “Re-Employment after superannuation” stated that: “Re-Employment beyond the age of superannuation in all cases requires approval of the Prime Minister”. However, during the Audit on the accounts of PNSC for the year 2015-16 it was observed from the review of personal record that Capt. Muhammad Shakil, D.O.B 07-06-1957, date of superannuation 06-07-2017, had been appointed as Executive Director (Commercial) irregularly on 01-01-2016 by the management. There were serious violations while appointing Muhammad Shakil as an Executive Director (Commercial) as under:

According to advertisement dated 08-11-2015 for ED (Commercial) initial contract was for two years. But he was appointed for 01 year contract. He was ineligible and misfit candidate for two year contract due to his superannuation that was reached to after 1.5 years of contract. The Management had not hired the officer on two year contract as per advertisement terms and conditions. The incumbent voluntary retired from the post of G.M on 30-01-2016 and was re-employed on 01-02-2016 as ED (Commercial) at PNSC because he was not summarily rejected as per Prime Minister Directives.

When the candidate was to reach superannuation age after 1.5 years then why approval of the Prime Minister was not obtained before his re-employment. His appointment was made in violation to the composition of Selection Board of Establishment Division and Regulatory Ministry. He was retired from the post of General Manager on 30-01-2016 and he accepted letter of appointment of new job of Executive Director (Commercial) on 25-01-2016, six days earlier than his retirement date). Audit report said that Capt. Muhammad Shakeel was appointed irregularly and in a fraudulent manner on the post of Executive Director (Commercial). Selection Board of PNSC is unauthorized to appoint officers of BS-20 and above because Establishment of Pakistan and Regulatory Division of PNSC have prescribed own selection board which the management had violated blatantly.

There was a loss of Rs 48.216 million due to irregular appointment of Syed Jarar Haider from Manager to Executive Director (Finance), BS-20, without approval of Ex-Prime Minister of Pakistan. During the Audit on account of PNSC it was observed that appointment of Jarar Haider Kazmi on contract basis from Manager Finance on 2005 to Executive Director (Finance) was irregular. His appointment as Manager Finance was in violation and contradictory to advertisement, Selection committee, without approved sanctioned strength, without observing quota and other codal formalities. His appointment as ED (Finance) was also irregular because selection Board of PNSC is unauthorized to appoint BS-20 and above. His selection/ appointment should have been made as directed by Establishment Division and controlling division mentioned above. Thus, management had violated most of government orders regarding his initial appointments especially by selection board.

It was also observed that the Hon’ble High Court of Sindh, Karachi had imposed status Quo on the contractual of PNSC in the year 2014 vide CP D-830 till further decisions given by the court. According to Status Quo imposed by the court, PNSC cannot change the status of employees in the form of promotion or the other because status quo still maintained. As per the rule 1 & 2 of CPC, the Court may grant status quo wherein the respondents were prohibited to act in certain manner and it holds the field till the pendency of petitions.

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