LAHORE: The Lahore High Court on Wednesday questioned functioning of public sector companies in Punjab province in the presence of local government system.

Hearing a petition against establishment of 56 public sector companies in the province, Chief Justice Syed Mansoor Ali Shah observed that the court would also like to know the purpose behind setting up these companies and appointing their bosses from public servants against salaries disproportionate to other government officers of same scale.

Terming the matter an important one, the chief justice also hinted that a larger bench could be constituted to hear the petition.Earlier, Advocate Azhar Siddique argued that Rs150 billion had been spent by the provincial government for the establishment of these companies in the name of ensuring `good governance.

He said the government`s adventurefaced ahuge setback as all public sector companies had failed to give the required results. He said neither accounts of these companies had not been audited nor they published any annual audit report while heads of these companies had been drawing huge salaries besides other perks and privileges.

The lawyer alleged that two of these companies run with Turkish cooperation had been awarded contracts by the provincial government in violation of rules. He pleaded that public money was being wasted on these companies.

He asked the court to declare the establishment of the public sector companies illegal and order an inquiry into the alleged corruption committed by their staff.

After hearing the arguments, the chief justice sought a detailed reply from the government by Nov 14.

Punjab Saaf Pani Company, Punjab Agriculture and Meat Company, Lahore Transport Company, Lahore Waste Management Company, Lahore Parking Company, Multan Cattle Market Management Company and Punjab Livestock & Dairy Development Board are prominent among the companies questioned in the petition.