LWMC board cleaning its financial, administrative mess.

Byline: Mansoor Malik

LAHORE -- The Lahore Waste Management Company (LWMC ) is all determined to plug over a Rs1 billion irregular payments and pilferage of public funds besides overhauling its operational model with a practical sustainability plan at hands.

The company plans to itself go for primary collection of waste from door-to-door as well as mechanical sweeping and mechanical washing of roads besides hiring additional labour through third party contract. It plans outsourcing secondary collection services alone.

The company is facing a serious financial corruption crisis as it identified around Rs900 million payments in lieu of outsourced manpower and MBS incentive, without prior approval of competent forum.

The LWMC Board of Directors, led by chairman Riaz Hameed Chaudhry, has sent a reference to the Chief Minister's Inspection Team to ascertain the legitimacy and legality of extension in labour contracts and payment of around Rs900 million by company's Management Procurement Committee (MPC) to the contractors during 2018.

The company had earlier sent a reference to the Punjab local government and community development (LG and CD) department to ascertain the legitimacy and legality of labour contracts extension during 2018. The local government department, however, returned the reference to the company stating that the matter might be inquired into either at the level of top company management or by constituting a committee of the BoD members.

The company says the MPC was authorized only to extend/approve procurements up to Rs20 million following PEPRA rules. The company claims the same contract has now been tendered against and it expects straight away Rs94 million annual savings.

The LWMC entered into contract and outsourced solid waste management operations to international companies Albayrak and Ozpak on Nov 3, 2011 for seven years. Since the companies began operations through phased mobilization till Feb 2013, the Albayrak company's contract would expire on Jan 31 next, while Ozpak's contract would expire on Feb 29. Of three zones of Lahore's 274 union councils, the company itself was covering 22 union councils.

Mr Chaudhry, when contacted, says the company's board of directors identified extravagant spending and plans saving over Rs210 million annually by just taking rational cost-cutting decisions.

He said the company's top management hired labour at new rates for an interim period of Nov to June 30 next and straight away...

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