ISLAMABAD: The Board of Directors of Sukkur Electric Power Company (SEPCO) has decided to proceed with the recruitment of a regular chief executive officer (CEO), maintaining that the Power Division neither directed the company to withhold the job advertisement nor formally suspended the Board’s earlier decision to readvertise the position, according to sources.
The Board has also sought clarification from the ministry regarding the legal authority under which a letter issued at the Section Officer level could effectively halt the implementation of a Board decision. It emphasised that the company’s governing body must be allowed to exercise its powers within the framework of applicable laws and policies governing state-owned enterprises (SOEs).
At its 111th meeting on August 24, 2026, the SEPCO Board decided to readvertise the CEO position. The decision was communicated to management on August 28, while the draft advertisement was forwarded to the Director (HR and Administration) on August 31, with instructions to publish it within two days.
However, during an emergency meeting on September 9, the Board noted that the advertisement had not been published. The CEO informed the directors that management had withheld the process in view of a Power Division letter dated September 1, 2026.
The Board observed that the ministry’s communication did not explicitly direct SEPCO to suspend recruitment. Instead, its second paragraph advised the company to engage a head-hunting firm for the CEO selection process.
After deliberations, the Board unanimously decided to conduct the recruitment independently through open advertisement, shortlisting and interviews under the supervision of its Nomination/HR Committee.
It maintained that hiring a head-hunting firm would require additional time for procurement and mobilisation, potentially delaying the appointment further. Management was therefore directed to publish the advertisement without further delay.
The Board stated that the recruitment process would comply with the State-Owned Enterprises (Governance and Operations) Act, 2023, the SOE (Ownership and Management) Policy, 2023, the SOE (C-Level Appointment) CMCU Guidelines, 2024, and the Public Sector Companies (Corporate Governance) Rules, 2013.
The Board also revisited its August 24 decision to assign the additional charge of Director (HR and Administration) to the Company Secretary. It explained that the temporary arrangement had been introduced to prevent a vacancy in a key management position and was within the Board’s authority under the applicable rules.
However, in deference to the ministry’s concerns and to keep the Company Secretary focused on governance and compliance, the Board decided to discontinue the additional charge.
On the broader governance issue, the Board referred to the SOE Act, 2023, and the SOE Ownership and Management Policy, arguing that it was the company’s governing body and had autonomy in discharging its responsibilities. It maintained that the federal government’s ownership role should be exercised through the mechanisms prescribed under the relevant laws and policies.
The directors further observed that the ministry’s letter had effectively led management to suspend implementation of a Board decision, delaying the appointment of a regular CEO despite repeated emphasis on the need to fill the position.
The Board has asked the Power Division to clarify whether its communication was intended to suspend the earlier decisions and, if so, to identify the legal basis for such intervention.
It said the clarification was necessary to establish clear boundaries between the respective roles of the Board, company management and the ministry and to prevent similar governance issues in the future.
Reaffirming its commitment to the SOE Act, 2023, the Companies Act, 2017, and the rules framed under them, the SEPCO Board expressed hope that the Power Division would continue to cooperate with the company on governance matters.
Story by Mushtaq Ghumman
