Senate Finance Committee Questions Rs. 260 Million SECP Salary Payments

The Senate Finance Committee, chaired by Senator Saleem Mandviwalla, convened to discuss several pressing issues, including the payment of over Rs. 260 million in salaries to the Chairman and Commissioners of the Securities and Exchange Commission of Pakistan (SECP). The session saw heated debates and raised questions about the transparency and legality of these payments. Senator Anusha Rehman questioned whether the government had sought cabinet approval for the payment of these salaries. She highlighted that allowances, including a 10% medical allowance and utility bills capped at 10% of salaries, were also included in the payments. She demanded clarity on the principles under which these allowances were added, stating, “We need to know the basis for including these allowances.” The Secretary of Law explained that the matter had been discussed in the Human Resource Committee and that the SECP Act grants the board the authority to increase salaries. However, Senator Rehman criticized the lack of objections raised during the HR Committee discussions, asking, “Why didn’t you object to this in the HR Committee?” The SECP Chairman clarified that the salary review was conducted through KPMG, which initially recommended a 60% increase. However, the SECP reduced it to 30%, considering it a public sector organization. He also noted that the SECP Chairman does not participate in board meetings regarding salary matters. Senator Mohsin Aziz raised additional concerns about the increase in salaries and allowances, while Senator Rehman pointed out that the inclusion of private sector members in the SECP has set a precedent that could lead to similar practices in other institutions. The committee decided to defer the matter until the Secretary of Finance could attend the next meeting.