DGTO Declares Election of Chairman (Central) PSMA Null and Void

ISLAMABAD The Directorate General of Trade Organisations (DGTO) has declared the election of Central Chairman, Pakistan Sugar Mills Association (PSMA), Faisal Ahmed Mukhar for the term of 2024-26 null and void and directed the Association that Chairman PSMA shall be elected by all members of the Executive Committee of PSMA.
According to DGTO decision written by Director Ali Suffian, Counsel of the Complainant submitted that the election process for the year 2024-26 was initiated on July 13, 2024 and in terms of Rule 16 and 17 of the T.O Rules, 2013 following members of the Election Commission were appointed by the Executive Committee of PSMA (Central) and were notified alongwith issuance of Election Schedule by Secretary General PSMA (Central) on July 13, 2024;(i) Ali Altaf Saleem, Shakarganj Limited ;(ii) Maqsood Mali, JDW Sugar Mills Limited ; and (iii) Wasif Khalid, Mirpurkhas Sugar Mills Limited.
In the 59th A.G.M of PSMA held on September 30, 2024 the “announcement of the names of office bearers of the new Committee” was Item No. 5. The Regional Committees after conduct of elections at Regional level intimated the following results to PSMA (Central) KPK Region ;(i) Iskander M Khan, Chairman, Chashma Sugar Mills Unit-II, D.I.Khan ;(ii) Rizwan Ullah Khan, Premier Sugar Mills Mardan ;(iii) Muhammad Bilal Bhatti, Al-Moiz Sugar Mills, D.I.Khan ; and (iv) Nusrat Ali Khan, Chashma Sugar Mills, Unit-I, D.I.Khan.
Punjab Region: Ch Muhammad Aslam, Chairman PSMA, Punjab Region, Mian Faisal Ahmed, Member Executive Committee and Omer G Adam, Member Executive Committee.
Sindh Region: Asim Ghani Usman, Senior Vice Chairman. Suleman Kanjiani, Chairman PSMA, Sindh Region, Haider Bux Rustamani, Member Executive Committee and Khalid Hayat, Member Executive Committee.
The Counsel submitted that as per Rotation Policy of PSMA, the turn of election of Chairman under Article 18(a)(ii) of AOA of PSMA for the year 2024-26 is to be from KPK Region, hence the KPK Regional Committee of PSMA unanimously nominated Iskander M Khan for position of Chairman PSMA (Centre) for the term 2024-26.
However an objection was raised on his nomination in the AGM as Iskander M Khan remained Member of the Executive Committee during 2022-24. Hence it was decided in the AGM by the General Body that Mr. Asim Ghani Usman, who will be retiring as Chairman PSMA on September 30, 2024, shall continue as acting Chairman till 10-10-2024. The Counsel stated that it was decided by the Election Commission that KPK Region shall nominate another individual for the post of Chairman PSMA within 10 days, hence on September 30, 2024 election was again held for Executive Committee of KPK Region and the committee unanimously nominated Mr. Abbas Sarfaraz Khan, M/s Chashma Sugar Mills Limited from the KPK region as the Chairman of PSMA (centre) for year 2024-26 as per principle of Rotation given in Article 18(a) (iii) of Memorandum& AoA of PSMA.
The Counsel further stated that Secretary General (Central) PSMA on October 01, 2024 reported the objection raised in the 59th AGM on nomination of Iskander M Khan from KPK region as he remained Member of the Executive Committee during 2022-24 to the DGTO/ Regulator T.Os. Clarification was also sought on the status of Sugar Mills KPK Region due to nonpayment of subscription dues by one sugar mill from KP Region at time of filing of nomination papers. Accordingly the Regulator T.O office on October 03, 2024 clarified that members from KPK Region had right to become members of Central Executive Committee of PSMA. The Counsel stated that after this clarification a member of the Election Commission PSMA, namely Ali Altaf Saleem in his Emailof October 07, 2024 addressed to Secretary General PSMA (central) and all Regional Secretary Generals endorsed the nomination of Abbas Sarfaraz Khan for position of Chairman PSMA (central) from KPK Region as per Rotation policy and asked Secretary General PSMA for official notification of the same as acting charge of Mr. Asim Ghani Usman as Chairman ends on October 10, 2024. The Counsel stated that on 10-10-2024, Asim Ghani Usman, (retiring chairman) in the capacity of being newly elected Senior Vice Chairman with Secretary General (central) held a Zoom meeting of newly elected Executive Committee Members of PSMA under Chairmanship of Asim Ghani Usman S.V.C. and asked the Members without any prior Agenda of meeting to elect Chairman of PSMA (centre), to which the E.C Members from KPK Region raised their objection. Secretary General PSMA (central) on the same day 10-10-2024 informed the Regulator T.O regarding election of Faisal Ahmed Mukhtar as Chairman PSMA (central) for the term 2024-26. The Counsel prayed for appropriate directions to PSMA to accept and abide by the Election Result announced by Ali Altaf Saleem, a member of Election Commission PSMA for notification of Abbas Sarfaraz Khan as Chairman PSMA (central) from KPK Region as per Rotation policy for term 2024-26. The Counsel submitted that Schedule-D of the T.O Rules 2013 gives a schedule for rotation of the office of President for Federation of Pakistan Chamber of Commerce & Industry (FPCCI) amongst geographical territories, Moreover, past practice regarding appointment of the Chairman of PSMA be followed on rotation basis among regions and further stated that provision of rotation is available in Article 18(a)(iii) of AoA of PSMA.
The counsels of the Respondents stated that the Complainant through this complaint is creating a misimpression regarding election of Chairman PSMA (central). He stated that Regulator T.Os has clarified that Mr. Iskander M Khan was ineligible to contest the election for term 2024-26. He stated that Mr. Abbas Sarfaraz Khan’s name was not in nominations by KP Region in letter dated 25-09-2024 and he was neither nominated nor elected as Member Executive Committee from KPK Region and fresh inclusion of his name at this point of time has no legal basis as the E.C was supposed to elect the Chairman from amongst the existing members of its Executive Committee. He further stated that the
Election Results were announced in the A.G.M held on September 30, 2024 and soon after that the Election Commission on September 30. 2024 became functus officio, hence the issuance of letter (e- mail) October 07, 2024 by one member of the Election Commission after lapse of 07 days does not have legal value. He stated that a Zoom meeting of the Executive Committee was called on October 10, 2024 and keeping in view the fact that no single Region has the power to elect Chairman through Members of its Regional Committee, the outgoing Chairman i.e. Mr. Asim Ghani Usman who is S.V.C in the attendance of 09 elected members of Executive Committee which comprise the Electoral College for election of Chairman PSMA (central) elected Mr. Faisal Ahmed Mukhtar as Chairman PSMA (central) from term 2024-26 with 06 votes in his favor. The Counsel stated that Trade Organization Rules 2013 suggest only 02 zones i.e. North Zone (Punjab, KPK & Federal Area) and South Zone (Sindh & Balochistan) hence Zones are to be considered on this basis and the only provision in the T.O Rules, 2013 that provide for rotation of office of Chairman is where at least 50% of the Members of the General Body are comprised of the Associate class which here is not the case. The Counsel submitted that Schedule-D of the T.O Rules 2013 only gives a schedule for rotation of the office of President for Federation of Pakistan Chamber of Commerce & Industry (FPCCI) amongst geographical territories, therefore past practice regarding appointment of the Chairman of PSMA on rotation basis among regions have no effect on present election of Chairman PSMA. He further stated that provison of rotation is available in Article 18(a)(iii) of AoA of PSMA, however PSMA is bound to adopt the election procedure stated in Rule 21(11) of ToRs, 2013 for the appointment of Chairman of an Association. The Counsel prayed that the caption complaint may be rejected as being untenable.
On Friday, the decision has been released according to which, Director DGTO says that in exercise of powers delegated by the Regulator Trade Organizations under Section 22(2) of Trade Organizations Act, 2013, the he intends to dispose of the complaint filed by Rizwan Ullah Khan, Chairman KPK Region, Member Central Executive Committee, Pakistan Sugar Mills Association (PSMA) against Asim Ghani Usman, former Chairman, Pakistan Sugar Mills Association (PSMA). The complaint is filed on illegal conduct of election for Chairman PSMA (central) for year 2024-26 and non-observance of Rotation policy region wise.
DGTO is of the view that after hearing both parties it is clear that election of Chairman PSMA (Central) was not supervised by the Election Commission as required under Rule 21 of the Trade Organisations Rules, 2013 and the provision of rotation under Article 18(a(iii) of Memorandum of Articles of Association has not been followed. Further, Asim Ghani Usman (former Chairman PSMA) held the charge of Chairman m PSMA and retired on September 30, 2024 but remained acting Chairman till October 10, 2024.
“As he ( Asim Ghani Usman) was not a member of the Election Commission PSMA, hence actions taken by him on behalf of the Election Commission (PSMA) during these 10 days have not legal effect,” observed by the DGTO.
Ends