Prime Minister Shehbaz Sharif has formed a high-level committee to overhaul the governance structure of state-owned enterprises (SOEs) following reports of a CEO receiving over Rs355 million in perks within just 32 months. The committee is tasked with reviewing and streamlining SOE management practices to prevent misuse of taxpayer funds.
In the wake of an explosive report by The News, Prime Minister Shehbaz Sharif has constituted a high-level committee to investigate the governance and management practices within state-owned enterprises (SOEs). The committee’s formation comes after revelations that the CEO of an SOE linked to the Ministry of Economic Affairs had amassed over Rs355 million in benefits during a 32-month tenure.
The CEO, initially appointed in 2022 with a fixed salary of Rs500,000 per month, exploited “legal loopholes” to access substantial bonuses, allowances, and benefits. These included Rs56.3 million in fixed bonuses, Rs27.5 million in performance bonuses, and a staggering Rs52.3 million self-approved payout on his last day, despite voluntarily resigning. Additionally, the CEO’s extravagant spending on 23 foreign trips, amounting to Rs58.6 million, raised concerns over the justification for such expenses in light of the SOE’s operations.
The high-level committee, formed by the Cabinet Division on August 15, is tasked with reviewing the appointment and governance processes of SOE boards to prevent similar abuses. Chaired by the Minister for Establishment, the committee will include secretaries from various key government departments, such as Finance, Law, Commerce, and Power, along with the FBR chairman and private sector experts.
Key objectives of the committee will include:
- Identifying and closing legal loopholes in the SOE Act, 2023, and the nomination processes for SOE boards
- Addressing delays and inefficiencies in the board appointment process
- Ensuring greater transparency in CEO pay packages, board decisions, and compliance with the law
- Proposing reforms to curb the misuse of “independent” board powers
The committee has been instructed to submit its recommendations within three weeks. Sources within the government have expressed concern that similar financial excesses may be occurring across other SOEs, with taxpayer funds being used for personal benefits by top management.
The revelation has sparked widespread public outcry, calling for stringent measures to ensure that the governance and financial practices of SOEs align with public interest and accountability.
