ISLAMABAD- The Islamabad High Court on Wednesday set aside the appointments of Ali Arshad Hakeem as chairman of the Federal Board of Revenue and secretary of the Revenue Division by declaring the same as illegal and unconstitutional.
Justice Shaukat Aziz Siddiqui handed down the verdict on a petition moved by International Taxation Secretary Muhammad Ashfaq Ahmad against Hakeem’s appointments. The court had earlier reserved its judgement.
In April this year Ali Arshad Hakeem had been barred from functioning as chairman of the revenue board after the court suspended the notification released about his appointments by the Establishment Division on July 10 last year.
In its ten-page judgment, the high court declared the two notifications of the Establishment Division illegal, observing that the position of FBR chairman was not only important but also a sensitive one; the government should have advertised this post before making an appointment so that a suitable candidate could have been appointed following a competitive process. The court however directed the Establishment Division to fill the two slots till June 30.
International Taxation Secretary Muhammad Ashfaq Ahmad, a grade-19 officer, had sought to disqualify Hakeem as chairman of the Federal Board of Revenue. He submitted that Hakeem had been appointed as FBR chairman on July 10 last year, and later made the Revenue Division secretary on July 30, but his appointments were illegal, unlawful and in violation of the constitution and apex court judgments.
Ahmad – an official of the Inland Revenue Service – formerly known as income tax group – stated the said posts were purely civil service/cadre positions and could not be filled in by a non-cadre person when there were about half a dozen BS-22 officers in IRS and Pakistan Customs Service heading various other ministries/divisions/institutions and had spent their whole lives developing expertise in this otherwise difficult profession.
Through his counsel Barrister Zafarullah Khan, the petitioner contended that the incumbent FBR chief lacked in seniority, and went on to arguing these positions were too pivotal to be left open for the private sector that too without any cogent reasons and open competition.
The petitioner pointed out that the said posts were not advertised through the media to select a competent person. He submitted Hakeem was a former civil servant who remained with the Customs group of the Civil Service of Pakistan for a few years but later resigned. Had he continued his service, he would have been still in BS-19 as his batch mates were still serving in FBR on grade-19, argued the petitioner, adding hundreds of serving officers of the customs group and Inland Revenue Service (IRS) were senior to the incumbent FBR chief, but were put under his command against the fundamental principles of merit, standing and seniority in letter and spirit.
The petitioner stated the said act had caused unease, anxiety, demoralisation and despondency in FBR and it was the cause of existing shortfall of approximately Rs200 billion in achieving the revenue targets. He said the appointment of Hakeem was not in accordance with the intent and purport of the section 3 of the Federal Bureau of Revenue Act, 2007 as he lacked experience and educational qualification requisite for the due performance of the functions of the said office.
He maintained that the Establishment Division had forwarded a summary for the appointment at the said post and summary for the prime minister contained only one name whereas normally three names were suggested with comparative qualifications. Summary did not mention the peculiar skills, expertise, qualifications needed to head the revenue function of the state, he added.
The petitioner maintained the appointment of Hakeem as FBR chairman and Revenue Division secretary was illegal, without jurisdiction and lawful authority. He prayed to the court to declare both the notifications had no legal effect.