PM orders suspension of three power generation firms CEOs over delays in asset disposal

The government has suspended the Chief Executive Officers (CEOs) of three power generation companies (Gencos) following Prime Minister Shehbaz Sharif’s dissatisfaction with delays in disposing of dead assets and addressing human resource issues. 

According to a news report, the move comes after repeated directives from the Prime Minister’s Office were not implemented. The suspended officials include Abdul Vakeel, CEO of JPCL (Genco-I), Junaid Ahmed Baig of Genco-II, and Sabeeh Uz Zaman Faruqi of Genco-III. The suspensions were carried out on the Prime Minister’s orders after a review of the power sector on December 13, 2024.

During the review, the Prime Minister expressed his displeasure over the delay in disposing of redundant Genco assets and directed the Power Division to auction off the dead assets in an open and transparent manner with live media coverage. 

The Prime Minister also ordered disciplinary proceedings against the suspended officers.

Sources in the Genco Holding Company Limited (GHCL) confirmed that the CEOs failed to act on a directive issued by the Power Division in May 2024, which required State Bank of Pakistan-approved evaluators to assess the value of scrapped plants and initiate their disposal. The directive aimed to complete the process by December 31, 2024, but little progress was made.

The Boards of Directors (BoDs) of the three Gencos were instructed to immediately suspend the CEOs and report the actions taken to the Power Division. 

GHCL CEO also acknowledged that the suspensions followed accusations of negligence regarding the sale of scrap from outdated power plants.

Separately, the Senate Standing Committee on Privatisation has expressed dissatisfaction with the GHCL CEO for his lack of initiative in addressing the matter.

The Prime Minister has emphasized the need for transparency in the disposal of Genco assets to ensure public trust in the process. The directive to conduct live media auctions is aimed at enhancing accountability and preventing irregularities.