Ignoring seniors, PPL appoints board member as acting MD

Company should have recommended appointment of a new head to federal government

ISLAMABAD: In an unprecedented move, the board of directors at Pakistan Petroleum Limited (PPL) has given charge of acting managing director of the state-run company to a board member which has caused resentment among the staff.

Earlier, Syed Wamiq Bokhari was the managing director of PPL and after expiry of his contract, the board gave the acting charge to its member Saeedullah Shah while bypassing the federal government.

The board is supposed to play a role in policymaking and it may also recommend the appointment of a new head to the federal government, but it cannot take a decision on its own.



Shah had worked as director general of petroleum concession under the Ministry of Energy (Petroleum Division). After retirement, he was working as director in the PPL board.

Sources told The Express Tribune that it was an unprecedented move that a board member had been given the acting MD charge. Many senior officers were working in the company who could have taken over as acting head, but they were ignored.

Petroleum Secretary Raja Sultan Sikandar and additional petroleum secretary were also on the PPL board, but they did not raise any objection to giving the slot to Shah.

According to sources, Shah as a board member had held a meeting with senior officials of the company and raised questions about the bonus announced by the former managing director to encourage employees who had played a key role and had good performance.



He also raised questions about high salary packages of some company officers and declared that he would stop giving the employee bonus.

Sources pointed out that the former managing director of PPL had a clause in his appointment contract that he could remain in place after expiry of the contract and till the appointment of a new head. However, he was shown the door before hiring the new MD.

A senior official of the Petroleum Division explained that the Companies Act allowed the board of directors to appoint a board member as the MD, but it was better to permit the former MD to continue to remain in place.

Published in The Express Tribune, July 4^th, 2018.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.