PESHAWAR: The process of dissolution of Sarhad Development Authority (SDA), started in March by the Khyber Pakhtunkhwa government, is marred by several issues and controversies apparently because of the haste in which several steps were takenin thatregard.

Sarhad Development Authority (SDA) was set up for establishing industrial estates and zones across the province under SDA Act, 1972. Earlier this year, the provincial government announced to disband the authority and replace it with KP Economic Zones Development and Management Company (EZDMC). The formal launch of KPEZDMC was announced earlier in August.

Documents available with Dawn show that Mohsin Syed, a consultant, made a presentation about public-private partnership to PTI chief Imran Khan at his Bani Gala residence on March 6. On the occasion, a committee comprising provincial additional chief secretary, secretary industries and Mr Syed was formed. The committee outlined formation of KPEZDMC and transferring all SDA assets to it.

On June 7, the industries department issued a notification about formation of SDADisinvestment Cell, comprising secretary industries, additional secretaries of Enance and law departments. However, on July 29, 2015, the law department refused to nominate its representative to disinvestment cell.

Through a letter addressed to secretary industries, dated July 23, a copy of which is available with Dawn, it asked the official to clarify that under which provisions of SDA Act the cell was formed as no such provision existed in the law.

On August 17, law department again refused to nominate its official for the disinvestment cell.

In a summary submitted to the chief minister about SDA dissolution and KPEZDMC, dated September 4, industries department proposed that the way out of situation resulting from law department refusal to join disinvestment cell was to revive SDA Board and to perform all cell functions through it.

It proposed either to appoint SDA chairman and two board members from among government officers or give additional charge of chairman SDA to KPEZDMC chief executive.

In the light of this summary, the industries department on October 30, 2015, reconstituted the board of directors with secretary industries as its chairman and special secretary Snance as its director Snance and KPEZMDC chief executive officer as its director planning. The notification entrusted the board with the functions of disinvestment cell.

Interestingly, the establishment department on May 12, 2015 had given the additional charge of chairman SDA to then secretary for energy and power (now secretaryfinance) Ali Reza Bhutta, while another official Aziz Khan Khattak was given additional charge of director planning on October 31, 2014.

Apparently, industries department while reconstituting the board ignored these existing notification and appointed chairman and director planning.

Officials in the industries department told Dawn that the department had not so far withdrawn the notifications about giving additional charge to Ali Reza Bhutta and Aziz Khan Khattak.

An official, requesting anonymity, said that the slot of SDA chairman was a scheduled post and under esta-code chief secretary made appointment on such positions.

Secretary of industries acted beyond his jurisdiction in appointing himself as chairman of SDA, he added.

In another bizarre move, on September 23, 2015, the industries department issued SDA service rules, which was being disbanded, while earlier in April, the provincial assembly passed Amendment of Laws Bill 2015, which espoused a joint board of directors for SDA and Small Industrial Development Board (SIDB).

A source in the SDA also questioned transfer of its properties, including 424 acres of Hattar industrial estate Phase-VII, to KPEZDMC. In addition to this, SDA also transferred Rs125 million earmarked for development of Phase-VIL The official said when SDA`s mineral wing was transferred to mines department back in 2009, government enacted NWFP SDA Mineral Wing (Taking Over) Act for the purpose. He said that the money was also trans-ferred without following formalities and without getting planning and development department`s nod.

`In SDA case, all legal and codal formalities are being ignored with an unholy haste, the official said.

The SDA board of directorsinits November 27 meeting noted that KPEZDMC should be registered with Securities and Exchange Commission of Pakistan (SECP) under Section 42 of Companies Act on a fast track.

KPEZDMC certification of incorporation with office of provincial registrar joint stock companies dated March 13, 2015, shows that the company was registered under section 5 of the Companies Act. The SDA employees have also challenged dissolution of authority in Peshawar High Court.

Aftab Akbar Durrani, the secretary of industries, when approached, denied proceduralandlegalissuesinthe processandsaid that there were none. He said that dissolution of SDA was approved by the competent authority. He said that an application, moved for registration of the company under Section 42 of Companies Act, was pending for approval.

Mr Durrani said that there was no need of legislation to dissolve SDA as according to law government could dissolve it. He said that aim of creating EZDMC was to introduce corporate culture in it. He said that around 95 per cent of SDA staffers would not lose their jobs.

Mr Durrani said that reconstitution of SDA board was also approved by the competent authority, however, they had also asked the establishment department to notify it to do away with the compliant as well.