Expo Centres CEO Mariam Khawar under fire for salary hikes, mismanagement

Lahore: Pakistan Expo Centres Pvt. Ltd Chief Executive Officer (CEO) Ms. Mariam Khawar, has come under significant criticism after it was revealed that her salary surged from Rs900,000 to Rs2,300,000, along with bonuses and employer-covered taxes totaling Rs12.5 million over the past two years, said the media reports.

The substantial increase, according to the reports, occurred despite the company's financial struggles, including a loss of approximately Rs500 million under her leadership.

Last year alone, the company surrendered Rs660 million. 

Besides it, Ms. Khawar, they said, misrepresented the facts to the Board of Directors and other stakeholders.

Two inquiry reports from the Ministry of Commerce upheld the legitimacy of the CFO and CIA appointments, yet Ms. Khawar allegedly sought a third inquiry to justify her prior actions, further questioning her motives.

Moreover, two well-known audit firms, EY and KPMG, reportedly withdrew their audit services from Pakistan Expo Centres during her tenure.

The company also failed to submit its Statement of Compliance to the Securities and Exchange Commission of Pakistan (SECP) last year, exacerbating concerns about governance. Despite this, Ms. Khawar is actively seeking the renewal of her contract, which is set to expire in September 2024.

Adding to the turmoil, Ms. Khawar unilaterally shifted long-serving employees from permanent to contractual status and terminated all Heads of Departments (HODs). This decision led to the departure of key staff in several departments, including Finance, Internal Audit, Sales, Business Development, Procurement, Engineering, ICT, HR, and Security, either through termination or resignation.

Further complicating matters, Ms. Khawar, according to the reports, misled the complaints with the Federal Investigation Agency (FIA) against the previous management in an alleged effort to intimidate them. However, the FIA referred these complaints back to the Ministry of Commerce, casting doubt on the legitimacy of her actions.

Despite these serious issues, the Board of Directors has yet to take any decisive action against Ms. Khawar. Additionally, her failure to comply with the SOE Act 2023, which requires the proper formation of the Board, has led to a legal challenge against the Board of Directors in the Lahore High Court.

According to Section 168 of the Companies Act 2017, the directors must refrain from exercising their office rights once a defect in the Board's composition is identified, raising further questions about the Board's functionality under the current circumstances.