The Ministry of Finance has reportedly taken notice of serious allegations against Hamayat Ullah Khan, Chairman of the Board of Directors at Peshawar Electric Supply Company (PESCO), following a detailed complaint submitted by Saima Akbar Khattak—a Federal Government-appointed Independent Director on the Boards of PESCO, TESCO, and HAZECO.
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In her letter to Finance Minister Senator Muhammad Aurangzeb, who also chairs the Cabinet Committee on State-Owned Enterprises (CCoSOE), Khattak accused the Chairman of multiple violations of the SOE Act, bypassing the Board, obstructing reforms, and enabling unchecked mismanagement—putting the company at legal and financial risk.
Key Allegations:
- Systematic Bypass of the Board: The Chairman is accused of routinely making decisions unilaterally, assuming powers of both management and the Board without consultation or approvals—direct violations of the SOE Act.
- Resistance to Reform: Contrary to the government’s vision for corporatized, performance-driven DISCO boards, the Chairman allegedly dismissed efforts to bring in market professionals, stating that “civil servants are better suited” to run SOEs.
- Interference in CEO & C-Level Hiring: After the Board contracted Sidat Hyder to recruit top executives, the Chairman reportedly sabotaged the process—altering criteria, delaying meetings, and forming an unauthorized “Special Committee” under his sole control, in clear conflict of interest.
- Illegal CEO Hiring Notice: A public CEO job notice was issued in violation of the agreement with Sidat Hyder, which had already submitted candidates and triggered contractual payments. This not only breached the agreement but also jeopardized the credibility of the hiring process.
- Manipulation of Board Functioning: Serious concerns were raised about:
- Editing board minutes and removing dissenting notes;
- Undermining decisions by refusing to act on poor performers;
- Delaying mandatory SOE Director training;
- Appointing a CEO without required director presence;
- Withholding updates on high-level provincial negotiations, including on net hydel profits and “provincialization” of PESCO.
- Alleged Record Tampering by Senior Official: Senior PESCO officer Tahir Moeen is accused of falsifying his date of birth to delay retirement. Despite conclusive evidence and multiple complaints, he retains his post due to the Chairman’s protection. Investigations were entrusted to junior officers with personal ties—undermining credibility and violating service rules.
- Suppression of Accountability: In a World Bank-funded project (PESCO Tender# PK-PESCO-328489), the Board reportedly found clear lapses by senior staff. Some directors recommended NAB involvement, but the Chairman overruled, advising only internal warnings without formal disciplinary records.
- Unilateral Political Engagement: The Chairman and PESCO’s management are allegedly working with the KP Government on a plan to transfer PESCO’s control to the province—without Board approval or any formal discussion.
In her urgent appeal, Khattak wrote:
“I implore you to intervene as Chairman, CCoSOE, and protect the Hazara, Tribal, and Peshawar distribution companies from the havoc that this Chairman’s conduct is unleashing.”
Sources confirm that the Finance Ministry is now examining these charges, with possible repercussions for the PESCO Chairman and broader scrutiny into the governance of state-run DISCOs.
