WRIT PETITIONS AGAINST THE LWMC: LEGAL ISSUES ARISING FOR RESOLUTION

1. Article 140A of the Constitution1: Whether any political, administrative or financial

power can be devolved on any entity other than a Local Government? Whether a
delegatee (CDGL) can further delegate its powers (as CDGL has delegated its powers to
the LWMC)?

2. Whether the “Services and Asset Management Agreement” is a substantive Agreement

seeking to procure “services” and therefore attracting the provisions of the Punjab
Procurement Rules 2009 or is merely an “Agency” Agreement?

3. Whether assets of the CDGL and TMA (esp. immovable assets) have been “leased” to
the LWMC without complying with the provisions of the section 124 of the PLGO 2?
Whether the permission to the Lessee to further sub-lease the assets is within the
powers conferred by the LPGO?

4. Whether the “Services and Asset Management Agreement” is violative of the rights of
the employees of the CDGL/TMAs as guaranteed by the PLGO, Punjab Civil Servants
Act3, 1974 and Rules framed thereunder?

140A. Local Government:

(1) Each Province shall, by law, establish a local government system and devolve
political, administrative and financial responsibility and authority to the elected
representatitves of the local governments.

(2) Elections to the local governments shall be held by the Election Commission of
Pakistan.]

124. Use and disposal of properties of local governments.- (1) Properties of local
governments shall be used only for public purposes.

(2) Immovable properties of local governments shall, subject to section 125, not be sold or
permanently alienated:Provided that such properties may be given on lease through competitive
bidding by public auction; Provided further that the Government may constitute a Committee
headed by Zila Nazim to identify encroached or redundant properties that may be sold in the
prescribed manner with the approval of the Government. The funds generated from the sale of
such properties shall be kept in a separate account and be used only for development purpose.]
(3) The movable property of a local government which is required to be
disposed of, shall be sold through competitive bidding by public auction.

(4) All articles declared unserviceable shall be disposed of through competitive bidding by public
auction.

(b) “civil servant” means a person who is a member of a civil service of the Province or who
holds a civil post in connection with the affairs of the Province, but does not include–
(i) a person who is on deputation to the province from the Federation or any other
Province or Authority;
(ii) a person who is employed on contract, or on work-charged basis, or who is paid
from contingencies; or
(iii) a person who is a ‘worker’ or ‘workman’ as defined in the Factories Act, 1934 (XXV
of 1934) or the Workmen’s Compensation Act, 1923 (VIII of 1923);