OGDC conducts interviews for appointment of MD

Spokesperson says appointment is being made in line with rules

ISLAMABAD: The board of directors of Oil and Gas Development Company (OGDC) has set aside the government’s decision on initiating a fresh process for hiring managing director of the country’s largest oil and gas explorer and has conducted interviews of the candidates picked by the previous board, an official said.

In October last year, the previous OGDC board of directors had made recommendations for appointing the new managing director of the company but the Pakistan Tehreek-e-Insaf (PTI) government, which came to power in August 2018, did not give the go-ahead. Rather, the government started the process of reconstituting the board for appointing the MD on merit.



However, the reconstituted OGDC board conducted interviews of those candidates last week which were selected by the previous board, formed by the Pakistan Muslim League-Nawaz (PML-N) government allegedly on political grounds.

The board conducted interviews of 10 candidates which included those aspirants whose names were sent three times to the then prime minister during the PML-N’s tenure but no appointment was made.

The previous board recommended officials who were working in companies getting contracts from OGDC in October last year. This was against the criteria of appointing the managing director as the candidate for the post should be from an exploration company. Some of these candidates also enjoyed the support of a lobby of stockbrokers.

The recommendations sent in the past three years demonstrate the board’s preference for service providers instead of choosing people from the exploration and production industry. The board’s inclination highlights the strong lobby and influence that service providers and stockbrokers hold within the board. Now, the current board, formed by the PTI government, also interviewed the candidates selected by the previous board.

“The previous board had made four attempts to get appointed an official working in contracting companies but did not succeed. The current board also followed the same practice instead of starting the process afresh,” an official in the Petroleum Division said.

“The hope that OGDC will get a professional MD has faded as the new board is lobbying for appointing a man from a contracting company,” the official said. The Petroleum Division has not taken any action so far to stop the illegal process and favouritism.

When contacted, an OGDC spokesperson said “the board discharges its duties independently and objectively. The process of appointing the MD is being undertaken strictly in accordance with applicable rules and the board’s mandate. Final decision on selection and appointment vests with the federal government.”

Earlier, the government gave a three-month deadline to the ministries and divisions, telling them to appoint permanent full-time heads of state departments, organisations and entities within the given time frame. The three-month deadline was set after cabinet members voiced deep concern over the practice of assigning additional charge of important positions including the head of department.

Cabinet members argued, in a recent meeting, that part-time heads of department were not able to do justice to their assignments and all organisations must have full-time head, chief executive officer and chairman.

“If the ministries and divisions fail to meet the deadline, the minister and secretary of the ministry and division concerned will be held responsible,” a senior government official told The Express Tribune while quoting a decision of the cabinet, chaired by Prime Minister Imran Khan.

Earlier, the government had directed the ministries and divisions to appoint permanent heads of public-sector companies and departments after coming to power about 11 months ago. However, the directive was ignored and important positions were being held by officials on an acting basis.



A Petroleum Division spokesperson said the OGDC board of directors had been asked to look into it. “It had the option to either review/re-interview the candidates already shortlisted or conduct the exercise afresh. The board has re-interviewed and will now decide. If it feels an appropriate panel is available, it will go ahead. Otherwise, the process will be started afresh.” 

Published in The Express Tribune, July 30^th, 2019.

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