NOTE ON WRIT PETITION NO.

22063/2011 & 23423/2011 AGAINST THE

LAHORE WASTE MANAGEMENT COMPANY

 Writ Petition filed against LWMC, Govt. of Punjab and City District Govt. Lahore
(CDGL) impugning the Agreement dated 25-06-2011 (“the Agreement”--Annex-A to the
writ petition) and praying for a declaration that the said Agreement be declared as illegal,
mala fide and of no legal effect; further praying for a direction that services of the
employees of the CDGL be protected.

 In writ petition no. 22063/2011, it is further prayed that respondent no. 4 (SECP) may be
directed to de-list the LWMC.

 Several grounds have been raised in the writ petition that may be summarized as below:

i. That the LWMC has been established on the direction and at the behest of the
Chief Executive of the Province of Punjab merely and not in the public interest;
however the said allegation of mala fide remains unsubstantiated. Moreover, the
Punjab Local Govt. Ordinance (PLGO) vide section 128 envisages a role for the
Chief Executive of the Province concerned and empowers the same to issue
directives in public interest; the Petitioner has completely overlooked the
provisions of section 128 of the PLGO.
ii. It is further alleged that by virtue of the Agreement, services of several thousand
employees of the CDGL have been ceded to the LWMC; this however is false.
Under the Agreement, the CDGL still retain effectively the employment of the
employees who have merely been directed to perform their work under the control
of the LWMC. Under their Service Rules, the employees of CDGL are obliged to
perform their functions anywhere in the province in any department, local
authority or statutory body set up or established by the Provincial Government
(Rule 11 of the PLG District Service Rules 2005).
iii. It is further alleged that the Agreement falls within the purview of “public
procurement” and therefore could not be awarded without competitive bidding as
envisaged by the Punjab Procurement Rules 2009. This is also false. LWMC
merely performs certain functions as agent on behalf of the CDGL and TMAs and
is not providing any commercial services.
iv. It is further alleged that in violation of section 124 of the PLGO, the property of
the Local Government has been transferred without competitive bidding. This is
also false. The LWMC has only been licensed to use the property of the CDGL
and TMAs without actually transferring them to the LWMC.
v. That LWMC is a private entity therefore public functions cannot be entrusted to
it. This is also not correct. LWMC is a “public company” incorporated pursuant to
the provisions of section 42 of the Companies Ordinance and therefore a non-
profit institution. LWMC is completely controlled by the Government of Punjab
and CDGL. In view of aforesaid, LWMC is an agency of the Province of Punjab
and entitled to perform public functions.