PUNJAB AMENDS 2001 LOCAL GOVERNMENT ORDINANCE

C O N F I D E N T I A L SECTION 01 OF 02 LAHORE 000018

SIPDIS

E.O. 12958: DECL: 2/5/2020
TAGS: PGOV KDEM PK
SUBJECT: PUNJAB AMENDS 2001 LOCAL GOVERNMENT ORDINANCE

CLASSIFIED BY: Carmela A. Conroy, Consul General, U.S. Consulate
General Lahore, Department of State.
REASON: 1.4 (b),(d)

1. (C) Summary: The Punjab Assembly passed an amendment on
February 4 to replace current district nazims with
"administrators" appointed by Chief Minister Shahbaz Sharif
until local elections are held. Meanwhile, the provincial
cabinet is discussing a new ordinance that would basically
return the Punjab local government system to the pre-Musharraf
days, over opposition party objections. Local elections will
likely not be held before September, if ever. End Summary.

Two-Part Process: Amend Now, Bill Later
--------------


2. (SBU) An amendment on local governments featured prominently
in the Punjab Provincial Assembly, which commenced its first
session of 2010 on January 20. Punjab Law Minister Rana
Sanaullah Khan told PolOff that the Assembly would amend the
existing 2001 Local Government Ordinance (LGO) to replace the
current local district nazims with "administrators." Punjab
Minister for Local Government Dost Muhammad Khosa added that the
amendment would also create a Punjab Election Authority, which
would take oversight of local elections from the federal
Pakistan Election Commission. The amendment was introduced in
the Assembly on January 28 and passed on February 4. Meanwhile,
Punjab Chief Minister Shahbaz Sharif's cabinet is discussing a
new Punjab LGO to define the administrators' authority and
responsibilities. Khosa is optimistic that the new LGO bill
will be introduced to the Assembly in its spring session.

Nazims Out, Administrators In
--------------


3. (C) The amendment currently passed contains the only
provisions that the provincial coalition cabinet has agreed to
and approved. Consequently, this amendment passed because it
has the support of coalition member parties the Pakistan Muslim
League - Nawaz (PML-N) and the Pakistan People's Party (PPP).
Details of the new administrators' authority have yet to be
fully worked out by the coalition. The existing District
Coordination Officers (DCO),appointed by Shahbaz Sharif, will
be retitled as administrators until local elections are held,
according to Khosa.

Pre-Musharraf with a Little Devolution
--------------


4. (C) The proposed LGO will likely be a return to the
pre-Musharraf local government system with some of the "good"
features of the current and outgoing district nazim system,
according to Khan. He highlighted the new LGO's three likely
main features. First, because of the current law and order
situation, the District Police Officer (DPO) will report to the
provincial government, instead of the local administrator.
Second, the Punjab government will determine and closely monitor
the budgets of local administrators. Third, urban populations
within a district will be governed by a separate administrator
("lord mayor" or "mayor"). Note: These three provisions were in
place in the pre-Musharraf local government system. End Note.
However, some of the authority devolved to local governments in
the current LGO would remain. They include primary school
education, basic health units, agriculture, and revenue
collection, according to Khosa.

Local Elections: Fall 2010 - Maybe?
--------------


5. (C) The currently proposed amendment provides that the Punjab
government has no more than 180 days to announce the date of
local elections. Khosa, however, believes that the current law
and order situation will be cited as a reason to delay them.
Khan confided elections would be no earlier than September 2010,
while Khosa hesitated to say whether elections would ever be
held. Opposition parties have already begun opposing the idea
of a Punjab Elections Authority, fearing it would be too under
the control of the Sharifs' PML-N. Comment: Their fear may
well be justified, as PML-N contacts have informed Lahore PolOff
that a retired Lahore High Court judge has been identified to
head the new Punjab Elections Authority.

Opposition Criticizes Bill, Stands to Lose
--------------


6. (U) According to media reports, Pakistan Muslim League (PML)

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party leader Chaudhry Pervaiz Elahi and Punjab Assembly
opposition leader Chaudhry Zaheer-ud-Din (also PML) spoke out
against the amendment. Note: The Pakistan Muslim League -
Quaid-e-Azam (PML-Q) ceased to exist in 2004 when it merged with
the National Alliance, the PML-Z, and the PML-Jinnah to form the
PML. End Note. Elahi claims that the Shahbaz Sharif's
administration does not want local elections and will misuse
local funds. Note: Most of the current and outgoing local
district nazims are PML affiliated. End Note.


7. (C) Comment: The PML-N stands to be the clear winner in a
return to the pre-Musharraf local governance system in the
Punjab, given its head start in the appointment of local
administrators. PML's fears of no local elections may prove
true in the near-term, as their delay only prolongs Shahbaz's
direct control of local governments for the time being.
Consequently, this will further entrench and grow the PML-N's
political support base in the province. It remains to be seen
if this will translate into better or worse services for the
population. End Comment.
CONROY