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Member Finance, PTA, Completes His Service Term

Mr. Nasrul Karim Ghaznavi, Member (Finance) of Pakistan Telecommunication Authority is retiring today after serving eight years and completing his two service terms.

Mr. Ghaznavi was appointed as Member Finance in 2005, after which he was granted second service term in 2009 on recommendations Dr. Yasin,then Chairman of PTA, as per PTA act.

Mr. Ghaznavi’s stay at PTA remained smooth and seamless for first six years. However, during last two years things went bumpy for him.

Back in 2011 his differences with Dr. Yasin, then Chairman of PTA, grew because of certain decisions that were taken by Dr. Yasin. The conflict widened and eventually Mr. Ghaznavi was suspended in April 2011 amid an inquiry that was initiated by Dr. Yasin.

Mr. Nasrul Karim Ghaznavi was later reinstated by Cabinet Division in August 2012, with approvals from Prime Minister of Pakistan at a time when Dr. Yasin was replaced by Muhammad Farooq Awan as Chairman of Authority.

Soon after this Mr. Ghaznavi was suspended again in October 2012 for reasons that were not made public, but he got re-instated with-in few days on orders of Islamabad High Court, which said that his suspension was illegal and overuse of rights by Cabinet Division.

In last quarter of 2012 Mr. Ghaznavi faced tremendous pressure from government to approve 3G Information Memorandum, however, he – along with Dr Khawar Siddique Khokhar, Member (technical) – took stand and didn’t approve the IM. Both the members were of the view that appointment of 3G consultants – who had prepared the IM – was illegal and not in accordance with law.

Since then Mr. Ghaznavi – and Dr. Khokhar, the Member (Tech) – were pressurized by the government. The whole episode reached to a level when both the members were even tried for abduction from their offices.

Nasrul Karim Ghaznavi, who completed his service term today, was not coming to office lately after abduction attempt and other threats.

Mr. Ghaznavi is a civil servant from 1974 batch. He has been associated with telecom sector since 1992 and holds vast experience in the field of telecom with financial and regulatory affairs.

It merits mentioning here that Government of Pakistan had invited applications for filling Member (Finance) slot. However, later it changed the requirements and re-advertised the job.

Recent media reports suggest that government is trying to induct its favourites as Members and Chairman of Pakistan Telecommunication Authority.

It would be interesting to note here that late evening rumours today said that government has appointed Mr. Muhammad Farooq Awan (ex-chairman of PTA) as Member Finance. We will keep our readers posted as soon as we get confirmations on this.

Supreme Court Reinstates ICH by Nullifying LHC Decision

Supreme Court of Pakistan has nullifiedLahore High Court’s interim decisionthrough which ICH or International Clearing House was suspended, reported Geo TV.

Supreme court’s Lahore registry has now remanded back the ICH case to CPP (Competition Commission of Pakistan) by saying that Lahore High Court is not mandated to suspend ICH.

SC said that ICH case should be heard in accordance with law and resolved in 15 days by Competition Commission of Pakistan.

It maybe recalled that Lahore High Court had suspended ICH after a local telecom operator had filed a petition against MoIT’s directive of implementing ICH.

According to the ministry directive, all LDI operators, except PTCL, were asked to suspend their international circuits for international incoming traffic and hence all international incoming traffic was practically landing on PTCL’s network only. All – other than PTCL – LDI operators were promised a respective revenue share from international incoming traffic according to their current market share.

Lahore High Court had then suspending the ICH and had directed Pakistan Telecommunication Authority to implement court orders by asking operators to revert back to international incoming charges at pre-ICH level.

Today, LDI operators approached Supreme Court against LHC’s decision and requested to reinstate ICH.

While accepting the petition, the Lahore registry of Supreme Court nullified LHC’s decision and reinstated ICH. Supreme Court — in its order —  said that Lahore High Court is not mandated to suspended ICH. Instead the case should be heard by CCP, the order said.

It merits mentioning here that ICH had given a free hand to operators to charge higher charges for international incoming calls. This has not only surged stock values of telecom companies but has also enabled them to post record revenues during the last Oct-Dec 2012 quarter.

Govt to Induct Favourites in PTA as Chairman and Members

The federal government is taking all possible measures to make sure the induction of its favourites as members and chairman in the Pakistan Telecommunication Authority (PTA), reports “The News”, while saying that it is evident from the series of advertisements published recently for hiring of the members of the authority.

As we reported recently, the advertisements were published after the issuance of an SRO, which has changed various requirements for the appointment of chairman and members of the authority.

Jawwad Rizvi of “The News” argues that these changes in requirements are especially tailored to bring in the favourites.

To understand the whole scenario, let’s have a look at the requirements:

Changes made in Upper Age Limit

As per PTA Act and Pakistan Telecommunication (Re-Organization) Act 1996, there is no age limit specified for the appointment of Chairman and Members of the authority. But the Cabinet Division has been setting the upper age limit arbitrarily from time to time — in total violation of the law — to accommodate some favourites while screening out the more experienced ones.

The most recent episode of manipulating with the age limit is evident from advertisements published in a short span of only 15 days. Following are the age limits in various job advertisements for members/chairman:

• Ad published on 10 April 2002: Upper age limit: 55 Years
• Ad published on 15 Sept 2008: No Upper age limit
• Ad published on 29 Jan 2013: No Upper age limit
• Ad published 30 Jan 2013: Upper Age Limit: 56 Years
• Ad published 14 Feb 2013: Upper Age Limit: 57 Years

It can be seen clearly from last three bullet points above that upper age limit has been changed thrice (No age limit -> 56 Years -> 57 Years) within a period of only 15 days. What purpose could these quick changes serve other than to accommodate someone and bar others to participate in the process?

According to sources, the upper age limit has been increased from 56 to 57 years in the latest advertisement appeared on 14 Feb 2013 just to accommodate ex chairman Mr. Farooq Awan, who will otherwise be out of the race by attaining the age of 56 years by the application deadline.

Changes made in Qualifications (for Member Finance)

Required qualifications have been drastically changed in the advertisement published on 14 Feb 2013 for the position of member (finance) as compared to the qualifications originally asked only 15 days ago through the advertisement appeared on 29 Jan 2013.

For example, previous advertisement included MBA (Finance) as one of the qualifications for this position, which has been removed from the latest advertisement to block certain well-experienced people working within PTA (Tariq Sultan, currently the Director General (Finance) at PTA).

Instead CFA and some other nomenclatures have been included specially to qualify ex chairman PTA Farooq Awan.

See following facts to understand the above argument:

• Ad published on 29 Jan 2013: CA or MBA Finance
• Ad published on 14 Feb 2013: CA/FCA/CFA/CPA/CIMA

Changes in Experience/Profile of Member (Finance)

In advertisement published on 29 January 2013, it was clearly stated that the Member (Finance) should be responsible for assuming a leadership role of all financial and economic matters relating to all regulatory issues such as competition monitoring, license fee determination, tariff fixation, interconnect pricing, taxation of the sector, adjudication of financial disputed, drafting of regulations, effective financial management and efficient internal control systems and activities incidental to the functions and powers of PTA.

But all this has been totally taken out and replaced with general management experience in the revised advertisement published on 14 Feb 2013 just to qualify the favourite one because he lacks all these skills/ experience required for this.

Requirement of PEC Registration for Member Tech

Registration with Pakistan Engineering Council (PEC) is a MUST under the law of becoming a professional engineer (PE) and holding any technical position. Being a professional engineer and registered with Pakistan Engineering Council (PEC) has always been a requirement for the position of member (Technical) in PTA.

This requirement was also included in the recent advertisement appeared on 29 Jan 2013 but after knowing the profile of all candidates who applied against the advertisement, PEC registration requirement was EXCLUDED from the re-advertisement published on 14 Feb 2013 just to allow entry to some favourites, who do not meet this requirement of the law.

• Ad published on 10 April 2002: PEC Registration included
• Ad published on 15 Sept 2008: PEC Registration included
• Ad published on 29 Jan 2013: PEC Registration included
• Ad published 14 Feb 2013: PEC Registration Excluded

Baring Dual Nationals:

Since, neither Pakistan Telecommunication (Re-organization) Act nor the Constitution of Pakistan bars dual nationality holders for holding office of member (finance, Tech) or Chairman PTA, this illegal addition in eligibility part of the advertisement is revealing that this condition has been included to stop some known candidate from applying for the post.

Conclusion:

I am not concluding anything here, rather I will invite you to draw a conclusion yourself and share it in below comments.

I would also want you to comment on the free-hand that we give to our elected government and the way they mis-use it for straight five years in doing whatever they want to, without any questioning, obligation or responsibility.

Is it really possible or even worthy to change the law/requirements or anything without even considering the impact on the economy, country and the industry?

New Regulations for Appointment of PTA Chairman, Members Formulated

Government of Pakistan has devised new regulations for the appointment of Chairman and members of Pakistan Telecommunication Authority, we have confirmed with sources.

An SRO was issued in this regard, according to which new regulations are in place now for the appointment of Chairman of PTA and the members of the body. Recent job advertisements of PTA members were published under the same new regulations.

SRO indicates that number of PTA members have been increased from two to three and there are certain other changes that were accommodated in Telecommunication (Re-Organization) Act 1996.

As per the information we have got, PTA will consist of following three members:

• Member (Technical)
• Member (Finance)
• Member (Compliance and Enforcement)

Requirements for PTA Chairman and Members:

As per the SRO, a copy of which was exclusively shared with ProPakistani, the members must meet following requirements:

• No person with dual-nationality should be able to become a member of PTA
• No person with age more than 65 years will be able to become a member of PTA
• Members or Chairman will have to quit after attaining the age of 65

Method of Appointment for PTA Chairman and Members:

Educational requirements for the members will be as following

• Member Finance:
  • Applicant should be financial expert / Chartered Account from a recognized institute of MBA (finance) from a national or foreign university with 15 years of experience including at least five years at the top management
• Member Technical:
  • Ph.D in telecom system / Electronics / Electrical Engineering wtg specialization in Telecommunication with 15 years of relevant experience in a responsible position in public / private sector
  • or M.Sc / M.S. (Electrical / Electronics / Telecommunication Engineering) with specialization in Telecommunication or radio-communication with a minimum of 18 years of relevant experience in a responsible position in public / private sector. Or B.Sc. Eng with 2 years of additional experience).
  • Preference and relaxation in experience will be give to candidates who possess MBA (in engineering / Telecom) qualification in addition
  • Registration with Pakistan Engineering Council
• Member Compliance and Enforcement:
  • Professionally Chartered Qualification in Business Finance / Regulatory Economics / Strategic Leadership, Corporate Management Telecommunication / Computer Sciences / Information Technology from local of foreign insinuations with 15 years of experience including at least five years at top management level
  • Or masters degree in above disciplines from foreign or local university with 18 years relevant experience in Public / Private Sector.

Sources tell us that appointment of members shall be made through open merit after advertising the post in the press (in English and Urdu Newspaper) inviting the applications for the post of members. A selection committee will conduct interviews for making recommendations.

Selection committee will consist of following:

• Minister / Minister of State as designated by the Prime Minister (Chairman)
• Secretary Cabinet (Member)
• Secretary IT (Member)
• Additional Secretary-II, Establishment Division (Member)
• Additional Secretary of the concerned division (Member)
• Chairman PTA (If in position (Member)
• An expert in the relevant field of the post advertised, not below BS-20 / equivalent from public / private sector to be nominated by the secretary of the concerned Ministry

Service Terms:

All members of the authority will be appointed for a term of four years and will be eligible for re-appointment for a similar term with the approval of Prime Minister, provided the performance of the chairman / members is found satisfactory by the committee notified by the Finance division.

Appointment of Chairman:

Federal Government will appoint a member to be the Chairman of the Authority from amongst the member(s) with the approval of Prime Minster.

Termination and Removal of Members / Chainman:

• In case members / Chairman resigns then the contract will be terminated upon acceptance of resignation by the Prime Minister
• Under death of member(s) or chairman
• Upon competition of tenure of period of the term
• Upon reaching the age of 65
• Under specific orders of a court of law
• Members and Chairman can be removed after inquiry by FPSC

Moreover, the performance of Chairman/Members will be evaluated by a committee notified by Finance Division and in case the performance is found not satisfactory, the term of the member may be termination subject to approval of the competent authority.

Industry’s Feedback:

Though the feedback from industry isn’t important for the government, however, there are serious reservations in the market over the new regulations. Telecom sector believes that authority is now given more into the hands of bureaucrats, which is fine, but the recent past of bureaucratic influence on authority and industry and its impacts are clear indication of the downfall of the sector show that such moves may lead to tragic repercussions.

Industry said that the limitations for of the dual-national for not becoming the chairman is meaningless, especially when Interior Minister of the country is dual-national himself.

It is said that educational requirements for the members are seemingly tailored for someone special who is already decided to be brought as the member of the authority. As an hint, look at following profile (Copied from his Facebook page) of a potential candidate for the member’s slot:

I acquired my college education at Government College Sargodha and the did my Masters in Computer Sciences from Quaid-e-Azam University Islamabad.

I also did additional master degrees one in MBA and other in Telecommunication. Right now I am a Phd Scholar in the field of Financial Management.

Government Again Advertises for the Jobs of Three PTA Members

While scrapping its earlier advertisements, Cabinet Division has once again advertised the vacancies for members of Pakistan Telecommunication Authority.

Job advertisement says that those candidates who had already applied against the posts of member finance and member technical — in response to earlier advertisements — will have to apply again.

Interestingly, government has decided to hire three members (instead of two allowed members as per telecom act), which are:

• Member Technical
• Member Finance
• Member Compliance and Enforcement

It merits mentioning here that Pakistan Telecommunication Act clearly mentions that PTA will comprise of two members and one chairman.

This same act was approved by the parliament and any amendment must be approved by the parliament only. However, it is learned that just an SRO was issued for the inclusion of third member in PTA’s board, which – according to experts – is not legal.

It is likely that this job advertisement – and then the hiring of members – will create another controversy and ultimately the deadlock for the industry.

Analysts, while speaking with ProPakistani, opined that government is taking such decisions so mindlessly that it has started to give an impression of deliberate attempt of sabotaging the telecom sector. They said that earlier job advertisements and now this new advertisement show the lack of homework and unprofessionalism.

Analysts said that inclusion of third member – as advertised in papers — isn’t mandated by parliament and hence may cause another legal disaster with-in and around Pakistan Telecommunication Authority.

Following is the job advertisement that was published in various newspapers: