Anjum Niaz: The superclass
Normally, I avoid commenting in my columns on other columnists and what they write--fairly or unfairly. It's not my business to poke my nose into their affairs of the pen. Since Mr Ikram Sehgal took a swipe at me in one of his columns recently, I must respond. He took affront to my mentioning that Farrukh Abbas, the CEO of Abraaj Capital (Pak) was getting a hefty Rs4.5 million monthly salary for heading KESC; and that he was related through marriage to Mrs T Hakim Ali Zardari. I think the public has every right to this information. Shaheen Sehbai's investigative story on Abraaj segued by an editorial in this newspaper last Friday and Saturday, respectively, must have further aggravated Mr Sehgal, who has been crusading for KESC's new management in his columns.
The editorial goes: "The company (Abraaj Capital), which emphasises its track record of accountability and transparency, has stressed that these persons (Farrukh Abbas and company) were appointed on the grounds of merit alone and on the basis of their desire to serve people. Sadly, this is not a version of events most people in the country will be willing to believe. Even though it (the PPP) has been in office for barely eight months, accounts of corruption, nepotism and blatant abuse of power involving members of the new government and other who hold high office can be heard everywhere. The past reputation of prominent figures only spurs this on. So too do the admissions made by Abraaj. In the Pakistani context, it seems obvious how certain people got key posts. They are also reported to be drawing extravagant salaries. These latest revelations will only add to the distrust for politicians that is deeply rooted in our society, with persons elected by people then using their power to rob the country they claim to serve. These people need to come forward and explain what has been happening at the KESC and why the controversial appointments were made."
To further deconstruct and navigate through this legal labyrinth can be too technical for the lay reader. So, bottom line: does Abraaj, which is incorporated as a Cayman Islands company, want control of KESC, which is a Pakistani company? It has already entered into an agreement with another offshore company called KES Power Ltd. This overseas holding company owns 72 percent shares in KESC. Both the companies fall within Pakistan's jurisdiction, yet Abraaj's circuitous route to ownership of controlling shares is raising red flags. Pakistani law protects the rights of minority stakeholders and therefore insists on "mandatory public intimation and offer requirement" whenever a company acquires more than 10 percent in a company. Why must Abraaj be exempted from going through this process?
The editorial goes: "The company (Abraaj Capital), which emphasises its track record of accountability and transparency, has stressed that these persons (Farrukh Abbas and company) were appointed on the grounds of merit alone and on the basis of their desire to serve people. Sadly, this is not a version of events most people in the country will be willing to believe. Even though it (the PPP) has been in office for barely eight months, accounts of corruption, nepotism and blatant abuse of power involving members of the new government and other who hold high office can be heard everywhere. The past reputation of prominent figures only spurs this on. So too do the admissions made by Abraaj. In the Pakistani context, it seems obvious how certain people got key posts. They are also reported to be drawing extravagant salaries. These latest revelations will only add to the distrust for politicians that is deeply rooted in our society, with persons elected by people then using their power to rob the country they claim to serve. These people need to come forward and explain what has been happening at the KESC and why the controversial appointments were made."
To further deconstruct and navigate through this legal labyrinth can be too technical for the lay reader. So, bottom line: does Abraaj, which is incorporated as a Cayman Islands company, want control of KESC, which is a Pakistani company? It has already entered into an agreement with another offshore company called KES Power Ltd. This overseas holding company owns 72 percent shares in KESC. Both the companies fall within Pakistan's jurisdiction, yet Abraaj's circuitous route to ownership of controlling shares is raising red flags. Pakistani law protects the rights of minority stakeholders and therefore insists on "mandatory public intimation and offer requirement" whenever a company acquires more than 10 percent in a company. Why must Abraaj be exempted from going through this process?
posted by temporal at 11/04/2008
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