ISLAMABAD: The Finance Ministry is reportedly in action against the Chairman of the Board of Directors (BoD) of Peshawar Electric Supply Company (PESCO), Hamayat Ullah Khan, following a letter written by one of the Board Members to the Finance Minister, who also serves as Chairman of the Cabinet Committee on State-Owned Enterprises (SOEs).
According to the letter—written by Saima Akbar Khattak, Director of PESCO, TESCO, and HAZECO—she was appointed in August 2024 by the Federal Government as an independent director on the Boards of Peshawar, Hazara, and Tribal Areas electricity distribution companies. She also serves as Chair of the HR and Legal Committees of these three DISCOs.
In her letter, she brought to the attention of Finance Minister Senator Muhammad Aurangzeb what she described as serious violations of law and abuse of authority by Chairman Hamayat Ullah Khan. These actions, she claims, have delayed the implementation of the SOE Act and its guidelines, and have created legal risks for PESCO.
According to the letter, the Chairman has been unilaterally exercising the powers of both the Board and the management without consulting or informing the Board or obtaining its approval on multiple matters. His repeated bypassing of the Board is reportedly a violation of the SOE Act and could have serious implications for the company.
Contrary to the Federal Government’s mandate for ‘corporatization’ of DISCO boards, the Chairman allegedly insists that no change is needed, arguing that the Board should not “re-invent the wheel” and that civil servants are better suited to manage the SOEs.
One of the Board’s primary responsibilities was to appoint market professionals to senior positions in order to financially and operationally turn around the company. Although advertisements were placed for C-level posts, they did not attract suitable candidates. In February 2025, the Board resolved to engage Sidat Hyder—a reputable audit and executive search firm—to identify competent candidates for CEO and other senior posts. It was also resolved that the HR Committee would oversee and complete this process. Sidat Hyder agreed under terms that granted it exclusive rights to source candidates, prohibiting PESCO from advertising or sourcing candidates elsewhere.
The Chairman allegedly delayed progress on C-level and CEO hiring by altering qualifying criteria or postponing Board meetings to discuss the HR Committee’s recommendations. On April 15, 2025, the Chairman reportedly formed a “Special Committee” to replace the HR Committee for hiring C-level executives and the CEO, without informing the Board or seeking its approval. He selected the committee members at his sole discretion, without disclosing any criteria for their selection.
Moreover, as Chair of this newly formed committee, the Chairman faces a conflict of interest—he is both recommending and confirming candidates in his dual roles as Committee Chair and Board Chair. Other committee members include two Directors seen as close allies (KP representative Irfan Wazir and Tahir Khan), along with a retired bureaucrat with no connection to the company, also selected solely by the Chairman. Instead of involving PESCO’s DG-HR in the recruitment process, the Chairman appointed TESCO’s HR Director to the committee. Notably, none of the ex-officio directors are members of this Special Committee.
The Finance Minister was further informed that, not content with undermining the Board’s authority, the Chairman also directed the publication of a notice for CEO appointment in violation of the agreement with Sidat Hyder. This occurred even though the firm had fulfilled its contractual obligations and submitted candidate lists—triggering the first installment of their agreed payment. This disregard for Board authority and applicable laws by the Chairman is reportedly causing operational difficulties and creating legal and financial risks for both the Company and its Board.
Some other instances of the Chairman Board’s authoritarian behavior have also been shared with the Finance Minister, who is Chairman of the Cabinet Committee o SOEs which recommends Boards’ Chairmen and Members to the Cabinet for final nod which are as follows ;(i) transfers and postings of senior/C-level officials, that are the Board’s prerogative, are made by the solely by CEO without permission or knowledge of the Board. The Chairman has expressed his view in board meetings that C-level positions be filled by existing officers or civil servants, and not open market competition. Had the existing officers been efficient, there will have been no need for PESCO to hire candidates from the open market to turn it around ;(ii) majority Directors lack critical knowledge of their rights and responsibilities under the SoE Act and corporate governance. This training is mandatory for SoE Directors and had to be completed by February 2025. Training cannot be arranged as the Chairman Board deems it unnecessary expense. Thus, majority of the directors are unaware of their obligations as directors of an SoE and this negatively impacts the Board’s effectiveness particularly the decision-making process ;(iii) the Board does not have visibility on negotiations /meetings that the Chairman has with various provincial government officials, e.g. net hydel profits or ‘provincialization of PESCO’. The Board is informed of the Chairman’s on-going projects with the provincial government, at his sole discretion ;(iv) presence of Directors is not deemed essential even at meetings where critical decisions are taken. For instance, in November 2024, the acting CEO-Hazeco was appointed with none of the ex -officio Directors present, although the SoE Act requires ex-officio directors to participate in selection of the CEO. The Chairman introduced PPMC’s head of audit as the most suitable candidate and ensured his appointment. The person had allegations of financial misconduct during his brief term that could not be investigated despite Board members repeated requests because the Chairman did not allow ;(5) minutes of meetings are often edited to include matters that were not discussed at a meeting. In some instances, dissenting notes by Directors are removed from the minutes ;(vi) There is no accountability for misconduct/corruption/ causing loss to the Company. The Chairman disallowed proposals to take action against officers who initiate litigation that hinders the Company’s business. e.g., the BPS 20 employee who has stalled CEO selection for 3 years, enjoys full benefits posted at HQ. The Chairman opposes accountability/transfers of consistently poor performing officers with high losses in their area of responsibility, because he believes it will not “look nice” ;(vii) PESCO’s senior-most employee Tahir Moeen found to have falsified official record that he submitted along with his application for CEO-TESCO post. Mr. Moeen changed his date of birth from 1964 to 1966 and instead of retiring in 2024, he continues to serve at C-level position in PESCO. The relevant WAPDA Rules, 1994, state the following regarding date of birth of employees: (a) initial entry record is final: The date of birth entered at the time of first appointment (i.e., in the service book) is considered final and binding ;(b) any discrepancy arising later (e.g., with CNIC or academic records) does not override the official service book record ;(c) no alteration in date of birth is allowed after Two years of appointment, unless there is a court order. No court order has been presented by Mr. Moeen thus far ;(d) proof required for date of birth at entry: At the time of joining service, the date of birth is recorded based on SSC/Matriculation certificate issued by a recognized Board. Mr. Moeen’s Matric certificate clearly states it has been “revised” to change the date of birth subsequently ;(e) CNIC issued afterward cannot be used to alter or override the recorded date of birth.
Conclusive evidence of Mr. Moeen’s record tampering was presented to both TESCO and PESCO boards. Multiple complaints of abuse of authority have been received against Tahir Moeen, with credible evidence, yet, with the Chairman’s backing, he continues to serve at a senior position. When Chair HR Committee urged action to investigate and set an example for accountability, Moeen’s best friend and a junior officer were selected to form the inquiry committee.
The Board was not informed or consulted. It is obvious what the result will be. Also, another junior
officer was also assigned to investigate abuse of authority charges. Both these violate established
principles and service rules.
She is of the view that PESCO suffered loss of several hundred million Rupees in a World Bank sponsored project (PESCO Tender# PK-PESCO-328489-GO-RFB-ICB-04 Procurement of safe maintenance vehicles, linemen
areal working platform truck/bucket mounted truck under World Bank Loan NO IBRD-9318-PK, PROJECT ID P170230). The Board concluded that there had been a failure on part of the senior level evaluation committee. Few directors wanted to notify NAB and take stem action. The Chairman disagreed and instructed the Management to warn those responsible but not put adverse note on their service file. The Chairman and management are helping the Government of Khyber Pakhtunkhwa devise a plan to take over PESCO. This matter has never been neither discussed nor approved by the Board.
” I implore you to intervene as Chairman, CCoSOE, in this situation and protect Hazara, Tribal and Peshawar Supply Companies from the havoc that the behaviour of their Chairman is about to wreak,” he concluded.
Ends
