THE [1][KHYBER PAKHTUNKHWA] SARHAD DEVELOPMENT AUTHORITY ACT, 1972.

[2][KHYBER PAKHTUNKHWA] ACT NO. XI OF 1973.

12^thJANUARY, 1973.

CONTENTS

PREAMBLE

SECTIONS

1.         Short title, extent and commencement.

2.         Definitions.

3.         Establishment of the Authority and its Office.

4.         Share capital.

5.         Management.

6.         Appointment and terms of office of Directors.

7.         Chairman.       

8.         Terms of first Chairman and Directors.

            9(1).     Disqualifications of Directors.

9(2).     Removal of Chairman or Directors.

9(3).     Resignation by Chairman or Directors.

10.       Appointment of officers, advisors, etc.

11.       Powers of Authority to associate other persons.

12.       Financial technical and advisory committee.

13.       Declaration of fidelity and secrecy.

14.       Meeting of the Board.

15.       Forwarding of statements, etc., to Government.

16.       Delegation of powers.

17.       Business which the Authority shall transact.

18.       Security for subscription.

19.       Loans in foreign currency.

20.       Act XVIII 1891 to apply the books of Authority.

21.       Annual Budget Statement.

22.       Custody and investment of Authority fund.

[3][22A.Recovery of Authority dues.]

23.       Maintenance of accounts.

24.       Audit.

25.       Annual report.

26.       Public servants.

27.       Indemnity of Directors, etc.

28.       Placing of audit reports, etc., before the Provincial Assembly.

29.       Power to make rules.

30.       Power to make regulations.

31.       Winding up of the Authority.

32.       Repeal and saving.

THE [4][KHYBER PAKHTUNKHWA] SARHAD DEVELOPMENT AUTHORITY ACT, 1972.

[5][KHYBER PAKHTUNKHWA] ACT NO. XI OF 1973.

12^thJANUARY, 1973.

(Received the assent of the Governor of the [6][Khyber Pakhtunkhwa]on 12th January, 1973)

AN
ACT

to provide for the establishment of Sarhad Development Authority for the purpose of promoting the economic and industrial development of the [7][Khyber Pakhtunkhwa].

            It is hereby enacted as follows —

            (2)It extends to the whole of the [10][Province of Khyber Pakhtunkhwa], except the Tribal Areas.

            (3) It shall come into force at once.

(a)         “Authority” means the Sarhad Development Authority                    [11][Khyber Pakhtunkhwa] established under section 3;

(b)         “Board” means the Board of Directors of the Authority;

(c)          “Chairman” means the Chairman of the Authority;

(d)         “Director” means a  Director of the Authority and includes the Chairman;

(e)          “Government” means the Government of the[12][Khyber        Pakhtunkhwa];

(f)           “Governor” means the Governor of the [13][Khyber     Pakhtunkhwa];

(g)         “Industry” means an industry for the manufacture of            consumer or producer goods, other than-

                                                                                   (i)      cottage or small industry; and

                                                                                 (ii)      the industry the development whereof under Federal            control is declared by Federal law to be expedient in          the public interest;

(h)         “minerals” mean all minerals excluding minerals necessary    for the generation of nuclear energy and mineral oil and            natural gas;

(i)           “prescribed” means prescribed by rules or regulations;

(j)           “regulations” means regulations made under this Act;

(k)          “rules” mean rules made under this Act;

            (2) The Authority shall be a body corporate having perpetual succession and a common seal with power, subject to the Provisions of this Act, to acquire and hold property, both movable and immovable, and shall by the said name sue and be sued.

            (3) The Head Office of the Authority shall be at Peshawar but Government may, by notification in the official Gazette, transfer it to such other place as may be specified in such notification.

            (4) The Authority shall establish Regional Offices at such places as Government may direct.

            (2) Nothing in sub-section (1) shall prevent the Authority from increasing its capital with the previous sanction of Government.

            (2)The Board in discharging its functions shall act on commercial considerations and shall be guided by such directions as Government may from time to time give.

            (3)If the Board fails to obey any direction as aforesaid, Government may remove the Directors including the Chairman,and, notwithstanding anything in section 6, appoint persons in their places to be Directors temporarily until fresh Directors are appointed under that section.

            (2)Each Director shall-

(a)               be a whole time or par-time officer of Authority;

(b)               perform such duties as the Board may by regulations assign to him;

(c)                divest himself of any directorship or other interest held by him in any other Corporation Company or concern other than public companies sponsored by the Authority, under sub-section (5) of section 17 before assuming office as whole time Director;

(d)               subject to the provisions of section 9, hold office for a term of three years and may be appointed thereafter for a further term or terms of such duration as Government may, in appointing him thereto, determine; and

(e)                receive such salary and allowances as Government may determine:

            Provided that Government may, in exceptional circumstances where it considers it necessary to do so in the public interest, exempt, by a special order, any person, who has been appointed or is about to be appointed a Director, from the application of clause (c).

            (3)One of the Directors appointed under sub-section (1) shall be the Financial Director, who shall exercise such powers and discharge such duties as may be prescribed.

            (2)Subject to his continuing to hold office as a Director, the Chairman shall hold office as Chairman for a term of three years and subject as aforesaid, shall remain in office as Chairman, thereafter until his successor in that office is appointed and may, subject as aforesaid, be appointed to hold that office for a further terms or terms as Government may, in appointing him thereto, determine.

           Provided that such Chairman and Directors may be appointed to hold that office for a further terms or terms as Government may, in appointing them thereto, determine.

(a)               is or at any time had been convicted of an offence involving            moral turpitude; or

(b)               is or at any time has been adjudicated insolvent; or

(c)                is found a lunatic or becomes of unsound mind; or

(d)               is or at any time has been disqualified for employment in; or dismissed from the service of Pakistan; or

(e)                is under the age of twenty-one years; or

(f)                 it not a citizen of Pakistan.

(a)            refuses or fails to discharge or becomes, in the opinion of Government, incapable of discharging his responsibilities under Act; or 

(b)            has in the opinion of Government, abused his position as Chairman or Director; or

(c)             has knowingly acquired or continued to hold without the permission in writing of Government, directly or indirectly, or through a partner, any share or interest in any contract or employment with, by or on behalf of the Authority , or in any property which, in his knowledge, is likely to benefit or has benefited as a result of the operations of the Authority; or

(d)            has absented himself from three consecutive meetings of the Board without the leave of Government in the case of the Chairman, or of the Chairman in the case of a Director.

            (2)The Authority may employ such officers, expert, advisors, consultants and other persons as may be transferred to it by Government,on such terms and conditions as may be determined by Government.

            (3)The Chairman, in cases of urgency, may appoint such officers, advisers, consultants and other employees as may be necessary:

            Provided that every appointment made under this sub-section shall be reported to the Authority without unnecessary delay, and  shall not continue beyond six months unless approved by the Authority.

            (2)A person associated under sub-section (1) for any purpose shall have a right to take part in the discussion of the Board relating to that purpose but shall not have a right to vote and shall not be deemed to be a Director for that or any other purpose.

            (2)Any advisor, officer or other employee of the Authority, who in the opinion of the Governor or a person authorized by the Governor in this behalf, has violated the declaration of fidelity or secrecy made by him under sub-section (1) shall be liable after being given a reasonable opportunity of showing cause against the action proposed to be taken with respect to him to be forthwith removed from his office or post.

            Provided that at least one meeting shall be held in a month:

            Provided further that until regulations are made in this behalf, such meetings shall be held at such times and at such places as may be determined by the Chairman.

            (2)The quorum necessary for transacting business at a meeting of the Board shall be three,if the Board consists of five Directors and two if the number is less.

            (3)Each Director, including the Chairman, shall have one vote but in the event of an equality of votes, the Chairman shall have a second or casting vote.

            (4)The meetings of the Board shall be presided over by the Chairman, and in his absence by a Director authorized by him in this behalf and in default of such authorization by a person elected for the purpose by the Director present from among themselves.

            (5)Not act or proceeding of the Board shall be invalid merely on the ground of the existence of any vacancy in, or any defect in the constitution of, the Board.

            (6)The minutes of every meeting, stating among other things, the names of the Directors present, shall be drawn up and recorded in a book to be kept for the purpose, and shall be  signed by the person presiding at the meeting, and such book shall at all reasonable times and without charge be open to inspection by any Director.

            (2)Government may require the Chairman to furnish it with-

(a)               any return, statement, estimate, statistics or other information regarding any matter under the control of the Authority; or

(b)               a report on any such matter; or

(c)                a copy of any document in the charge of the Chairman.

            (3)The Chairman shall comply with any such requisition under sub-section (2) without undue delay.

             (2)Unless, otherwise directed by Government, the Authority shall also be responsible for—

(a)   planning, promoting, organizing and implementing programmers for the establishment of industries, and commercial ventures;

(b)   the exploration exploitation and development of minerals and mines; and

(c)    tendering advice on the technical, operational and commercial feasibility of any programme or scheme specified by Government.

            Explanation.- In clause (a) “planning” includes studies, surveys, experiments and scientific and technical investigation.

            (3)Notwithstanding anything contained in sub-sections (1) and (2), the Authority shall perform such other duties and functions as Government may, from time to time, assign to it.

            (4)The Authority shall, in order to carry out any functions under sub-section (1) or clauses (a) and (b) of sub-section (2) or sub-section (3)-

(a)   submit, for the approval of Government, proposals or schemes; and 

(b)   proceed to give effect to any proposal or scheme as approved by Government.

            (5)the Authority may, and, where Government so directs, shall, for the purpose of giving effect to any proposal or scheme approved by Government, sponsor limited companies independent of each other or subsidiary companies incorporated under the Companies Act, 1913:

            Provided that before sponsoring any such company, the Authority shall obtain the approval of Government to the company’s capital structure.

            (6)The Authority shall be represented on the Board of Directors of the aforesaid companies.

(7)The Authority may issue the capital required for the aforesaid companies for public subscription and, if any portion thereof remains unsubscribed after the expiry of the closing date for public subscription, subscribe on behalf of Government that portion:

            Provided that the Authority shall not subscribe to an extent which in the aggregate exceeds such limit as may be notified by Government from time to time.

            (8)The Authority may underwrite the whole or any portion of the capital issued under sub-section (7).

            (9)The Authority shall, when it considers the time apportune sell or transfer the shares subscribed for by it under sub-section (7):

            Provided that no such sale or transfer shall take place at a rate below the market quotation or below the par value of such shares without the previous sanction of Government. 

            (10)the Authority may participate in joint ventures with [15][the public or private sector or both] in regard to matters specified in clauses (a) and (b) of sub-section (2).

(2)Nothing in sub-section (1) shall be deemed to preclude the Authority from investing any such money which are not required for immediate expenditure in any of the securities fixed deposit with a bank approved by Government or in such other manner as may be approved by Government.

“[16][22-A. Recovery of Authority dues.

(1)   The Authority may declare that any dues or class of dues recoverable by it from a defaulter shall be recoverable as arrears of land revenue.

(2)   On a declaration under sub-section (1), any such dues shall be recovered by the Collector in the manner laid down in the Revenue Recoveries Act, 1890 (Act No.I of 1890).]”

            (2)Notwithstanding the audit provided for in sub-section (1), the Auditor-General shall once a year audit or cause to be audited the accounts of the Authority.

            (3)The Auditor-General shall also hold, or cause to be held, a test audit of the undertakings wholly owned by the Authority and of the companies sponsored by it and in the event of a test audit disclosing irregularities, the Auditor-General may carry out or cause to be carried out, such further audit as he considers necessary.

            (4)The Authority and every such undertaking and company as is referred to in sub-section (3) shall produce the accounts, books and connected documents, at the place where they are normally expected to be available, and furnish such explanations and information as the Auditor-General or any officer authorized by him in this behalf may require at the time of the audit.

            (5)The Auditor-General shall, in holding the audit, keep in view the provisions of sub-section (2) of section 5 and state in his report how far in his opinion these provisions have been complied with.

            (6)A statement of accounts of the Authority and the report of the Auditor-General on the said accounts, together with the report of the Auditor-General on the account of undertaking and the companies referred to in sub-section (3) shall be furnished to Government by the Authority after the end of every financial year.

            (2)The annual report referred to in sub-section (1) shall, as soon as possible, be laid by Government before the Provincial Assembly of the [17][Khyber Pakhtunkhwa].

            (2)The Director shall not be personally responsible for the acts of any other Director, or of any officer, adviser, or an employee of the authority for any loss or expense resulting to the Authority by reason of the insufficiency or deficiency in value of or title to any property or security acquired or taken on behalf of the Authority, or by the wrongful act of any person under a liability to the Authority or by anything done by him in good faith in the execution of the duties of his office.

            (2)The Committee on public accounts shall scrutinize and examine the reports referred to it under sub-section (1) in the same manner, and shall in respect thereof perform the same functions and exercise the same powers as are required by it to be performed and exercised in respect of appropriation accounts of the provincial Government and the report of the Auditor-General thereon.

            (2)In particular and without prejudice to the generality of the foregoing powers,such rules may provide for —

(a)   the manner of keeping accounts of the Authority and the companies managed by it;

(b)   the recruitment of officers, advisors and employees of the Authority;

(c)    the terms and conditions of service of the officers, advisors and employees of the Authority, including the functions of the advisors;

(d)   the borrowing by the Authority;

(e)    the purchase and sale of goods by the Authority;

(f)     the date by which, and the form in which, the annual budget statement shall be submitted in each year;

(g)   the procedure for appropriation and re-appropriation of moneys returns, at the credit of the Authority;

(h)   the form and manner in which and the authorities to whom returns, reports or statements shall be submitted; and

(i)     such other matters relating to the administration of the affairs of the Authority as Government may think fit to regulate by rules.

            (2)In particular and without prejudice to the generality of the foregoing powers, such regulations may provide for —

(a)   the meetings of the Board;

(b)   the investment of the Authority’s funds; and

(c)    the sale or transfer of shares under sub-section (9) of section 17.

            (2)        Notwithstanding the repeal of the North-West Frontier Province, Sarhad Development Authority, Ordinance, 1972, everything done, action taken, authority established, obligation or liabilities incurred rights, assets or property acquired, persons appointed or authorized, jurisdiction or powers conferred or notifications or orders issued under any of the provisions of the said Ordinance or rules or regulations made thereunder, if not inconsistent with the provisions of this Act or rules or regulations made under this Act, shall be continued, and, so far as may, bedeemed to have been respectively done, taken, established, incurred, acquired, appointed or authorized, conferred and issued under this Act, and any document referring to any of the provisions of the said Ordinance, rule or regulations shall so far as may be, considered to refer to the corresponding provisions of this Act or rules or regulations made under this Act.