GHPL MD may move court on dispute over pay package
GHPL has been running in profit over the years, but it is now reeling from a circular debt of Rs37 billion
Minister pf petroleum. PHOTO: REUTERS
ISLAMABAD:
A dispute between the managing director of Government Holdings Private Limited (GHPL) and the Ministry of Petroleum and Natural Resources has deepened as the MD warns of taking legal action over delay in releasing his pay package.
Shahid Islam, Managing Director of GHPL, a small state-owned petroleum exploration company working under the petroleum ministry, has sought a salary package of over Rs10 million per month.
However, the managing director of Pakistan State Oil (PSO), a relatively bigger company associated with the petroleum ministry which markets oil across the country, receives a pay package of Rs5 million, which is almost half of what has been claimed by Islam.
Oil and Gas Development Company and Pakistan Petroleum Limited are other bigger companies that run under supervision of the petroleum ministry.
In a letter to Petroleum Minister Shahid Khaqan Abbasi on August 24, the GHPL MD argued that continuous failure of the company to clear his dues on account of salary and emoluments, which had already been legally determined and approved, constituted a breach of contract and could provide him a cause of action against GHPL.
“Since the company management lies with the board of directors, I would therefore call upon the board to issue necessary directions to the management to release arrears of my salary and emoluments which become payable with effect from September 24, 2014 onwards and to further issue directions that my monthly salary and emoluments be paid on regular monthly basis till the conclusion of my contract,” Islam said.
He also pointed out that he had held the additional portfolio of PSO managing director from January 18, 2015 to July 16, 2015 at a time when it faced multiple challenges. “It may be highlighted that I have not been paid any salary, allowances, bonus and emoluments for my tenure at PSO,” he said.
GHPL has been running in profit over the years, but it is now reeling from a circular debt of Rs37 billion.
The new board of directors of GHPL is not willing to endorse the high pay package for the MD and as a result flow of funds to the company’s new subsidiaries - Pakistan LNG Terminal Limited and Pakistan LNG - has been stopped.
Owing to the stalemate, Islam has not drawn his salary since his appointment 23 months ago. Questions had also been raised over his hiring as he did not apply for the post and was 64 years of age, which was above the set limit, at that time.
Earlier, the previous GHPL board approved the Rs10-million monthly package and sent it for approval of Prime Minister Nawaz Sharif. However, the premier withheld his nod and directed the board to take up the matter again. The new board did not back the decision of the former board and suggested that the MD’s package should be in the range of Rs1.1 to Rs1.5 million.
Published in The Express Tribune, September 9th, 2016.
A dispute between the managing director of Government Holdings Private Limited (GHPL) and the Ministry of Petroleum and Natural Resources has deepened as the MD warns of taking legal action over delay in releasing his pay package.
Shahid Islam, Managing Director of GHPL, a small state-owned petroleum exploration company working under the petroleum ministry, has sought a salary package of over Rs10 million per month.
However, the managing director of Pakistan State Oil (PSO), a relatively bigger company associated with the petroleum ministry which markets oil across the country, receives a pay package of Rs5 million, which is almost half of what has been claimed by Islam.
Oil and Gas Development Company and Pakistan Petroleum Limited are other bigger companies that run under supervision of the petroleum ministry.
In a letter to Petroleum Minister Shahid Khaqan Abbasi on August 24, the GHPL MD argued that continuous failure of the company to clear his dues on account of salary and emoluments, which had already been legally determined and approved, constituted a breach of contract and could provide him a cause of action against GHPL.
“Since the company management lies with the board of directors, I would therefore call upon the board to issue necessary directions to the management to release arrears of my salary and emoluments which become payable with effect from September 24, 2014 onwards and to further issue directions that my monthly salary and emoluments be paid on regular monthly basis till the conclusion of my contract,” Islam said.
He also pointed out that he had held the additional portfolio of PSO managing director from January 18, 2015 to July 16, 2015 at a time when it faced multiple challenges. “It may be highlighted that I have not been paid any salary, allowances, bonus and emoluments for my tenure at PSO,” he said.
GHPL has been running in profit over the years, but it is now reeling from a circular debt of Rs37 billion.
The new board of directors of GHPL is not willing to endorse the high pay package for the MD and as a result flow of funds to the company’s new subsidiaries - Pakistan LNG Terminal Limited and Pakistan LNG - has been stopped.
Owing to the stalemate, Islam has not drawn his salary since his appointment 23 months ago. Questions had also been raised over his hiring as he did not apply for the post and was 64 years of age, which was above the set limit, at that time.
Earlier, the previous GHPL board approved the Rs10-million monthly package and sent it for approval of Prime Minister Nawaz Sharif. However, the premier withheld his nod and directed the board to take up the matter again. The new board did not back the decision of the former board and suggested that the MD’s package should be in the range of Rs1.1 to Rs1.5 million.
Published in The Express Tribune, September 9th, 2016.