+- Pakistan Real Estate Times - Pakistan Property News (https://www.pakrealestatetimes.com)
+-- Forum: Pakistan Real Estate / Property News (/forumdisplay.php?fid=1)
+--- Forum: Latest Pakistan Property & Economic News (/forumdisplay.php?fid=4)
+--- Thread: PTCL privatisation deal contrary to rules, NA told (/showthread.php?tid=10147)
PTCL privatisation deal contrary to rules, NA told - Lahore_Real_Estate - 04-01-2010 02:59 PM
* Deputy speaker rejects appeals for forming special committee to investigate flawed transaction
ISLAMABAD: The privatisation deal of Pakistan Telecommunication Company Limited (PTCL) with Etisalat was not transparent and was made in violation of privatisation rules and procedures, Federal Minister for Privatisation Waqar Ahmed Khan informed the National Assembly on Wednesday.
Upon the minister’s revelation, the House referred the matter to the NA Standing Committee on Privatisation for a thorough investigation. Opposition members in the NA demanded the formation of a special committee to probe into the matter, which Khan did not oppose.
Rejection: However, Deputy Speaker Faisal Karim Kundi rejected the appeal, saying the matter had already been referred to the standing committee concerned. “The matter is referred to the standing committee. However, if the committee members feel that formation of a special committee is essential, it will be done,” the deputy speaker said.
The privatisation minister said the transaction was made without taking the Privatisation Commission Board into confidence, adding that Etisalat had withheld $800 million over the mutation of land issue to be transferred to the UAE-based company.
He said around 3,500 properties were to be transferred to Etisalat under the deal, which included lands that are not even owned by the federal or any provincial government, but owned privately and are under litigation.
The minister said the government had received an amount of $1.79 billion from Etisalat, of which $1.5 billion had been remitted to the federal government for debt retirement and poverty alleviation.
He added that an amount of $251 million had been utilised for payment of 50 percent shares of the government on account of PTCL employees’ dues.
The remaining proceeds had been utilised for the payment of transaction costs to financial and legal advisers, Khan said.
Efforts: The minister added that as the matter involved two countries, the government was trying to resolve the issue of withheld amount through diplomatic channels, however, there had been no headway in this regard so far.
Khan told the House that legal advisers had asked then government to scrap it for being contrary to rules.
Earlier, Raza Hayat Hiraj asked the House that as the privatisation minister did not oppose the formation of a special committee for investigating the matter, the body should be formed and given full mandate to probe into the deal.
The National Assembly also referred two bills, The Stock Exchanges, Corporatisation, Demutualisation and Integration Bill, 2009 and The Modaraba Companies and Modaraba, Floatation and Control Amendment Bill, 2009, to the Mediation Committee for consideration and resolution thereon, APP reported. staff report