SECP pushes for favoured advisor

Securities and Exchange Commission of Pakistan (SECP) is determined to flout the Supreme Court of Pakistan (SCP) judgment as it attempts to reappoint its former Adviser (Legal) Abdul Rahman Qureshi on a similar position (adviser), Pakistan Today has learnt on Thursday.
Informed sources disclosed that the SECP had moved a summary for reappointment of Qureshi as Advisor from July, 2011, which is in gross violation the Securities Exchange Commission of Pakistan Act, 1997 and in sharp contrast to the apex court’s decision. They indicated that Qureshi was a federal government employee who was inducted in the SECP as Commissioner Company Law in 1999. After completing his term in 2002, he was given an extension for the second term since 2002 to 2005, sources maintained.
After his retirement in 2005, Qureshi was once again appointed as Advisor (Legal) in the SECP for a term of three years (2005 to 2008) on the direction of the Ministry of Finance. They alleged that his appointment as Advisor (Legal) in the SECP contravened Section 9 of the Securities and Exchange Commission of Pakistan Act, 1997. Later, the SECP Chairman reappointed Mr Qureshi in the same position in 2009 for another term of three year (2009-2011). It was noted that Section 9 of the Securities and Exchange Commission of Pakistan Act, 1997 barred any government official, member of the SECP or SECP Chairman to appoint an advisor or consultant on his own initiative. As Section 9 of the said Act reads:
“Appointment of advisers and consultants.- (1) Subject to sub-section (2), the Commission may, employ and pay consultants and agents and technical, professional and other advisers including, without limitation, bankers, stock-brokers, surveyors, valuers, actuaries, accountants, lawyers and other persons to transact any business or to do any act required to be transacted or done in the exercise of its powers, the performance of its functions or for the better implementation of the purposes of this Act. (2) The decision to employ and the terms of employment of external advisers and consultants shall be made by the Commission in accordance with such policy guidelines as the Commission may, in consultation with the Board, establish from time to time.” Sources pointed out that Qureshi was reappointed as Advisor in the SECP in 2009 on a heavy package and perks, which included cash remuneration of Rs450,000, two of the commission’s maintained cars and other perks. Speaking to Pakistan Today, SECP Internal and External Communication Head Shakil Ahmad Chaudhry tried to remove any impression of nepotism by stating that the SECP was not reappointing Qureshi as an advisor. He stressed that the SECP had moved summary to extend Qureshi’s employment for one year under Section 8 and 9 of the Securities and Exchange Commission of Pakistan Act, 1997. The move was in accordance with the regulation and decision of the SECP Board, he underscored. Sources further claimed that the Ministry of Finance had intentionally avoided the name of Qureshi from the list of contract employees, which had been submitted the Supreme Court of Pakistan.