Corporate reshuffling: Government removes heads of gas utilities
SSGC managing director, however, wins stay order from court.
Sources alleged that the Pakistan Peoples Party-led coalition had appointed chiefs of state-owned oil and gas companies on political grounds. PHOTO: FILE
ISLAMABAD:
The caretaker government has pressed on with its drive to remove heads of state-owned oil and gas companies, who were appointed by the previous PPP-led coalition government allegedly on political grounds.
On Tuesday, the government terminated services of managing directors of gas utilities Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), a couple of weeks before the new government takes over.
However, sources later in the day said the SSGC managing director obtained a stay order against his removal from the Sindh High Court, arguing that there was no justification for his removal.
So far, the caretaker government has sacked heads of four oil and gas companies and one mineral development company.
Sources believe that those at the helm of affairs at three other public sector oil and gas firms including Pakistan State Oil (PSO), Inter-State Gas Systems (ISGS) and Pakistan Petroleum Limited (PPL) may suffer the same fate.
On Monday, the caretaker government removed Pakistan Mineral Development Corporation (PMDC) managing director Brigadier (Retired) Muhammad Khalid S Khokhar on grounds of irregularities in his appointment. Before that, heads of Oil and Gas Development Company (OGDC) and Government Holdings Private Limited (GHPL) were sent packing.
Earlier, the Election Commission of Pakistan (ECP) had asked the caretaker government to remove the heads of gas utilities before elections, saying they may influence the polls by initiating gas development schemes. However, the Ministry of Petroleum and Natural Resources did not agree with the ECP, arguing they were regular employees and were appointed in compliance with the rules and regulations.
“Now, the caretaker prime minister has ended prematurely the contracts of managing directors of gas distribution companies without seeking input of the petroleum ministry,” an official said.
Following a notification of termination of services by the Establishment Division, the petroleum ministry has also notified removal of SNGPL MD Arif Hameed and SSGC MD Zuhair Siddiqui with immediate effect and directed them to report to the ministry.
SNGPL Deputy Managing Director Amir Tufail will look after the affairs of the company until further orders. In SSGC, the government has given the charge to Deputy Managing Director Rahat Kamal to run the company.
Sources alleged that the Pakistan Peoples Party-led coalition had appointed chiefs of state-owned oil and gas companies on political grounds, who were expected to follow policies of the government.
SNGPL MD Arif Hameed was said to be close to former prime minister Yousuf Raza Gilani as both belonged to the city of Multan. Hameed was also believed to be close to ex-premier Raja Pervez Ashraf and provided several gas connections to captive power plants following directives from Ashraf.
This was the reason, sources said, Hameed’s contract was extended by a year, six months ahead of expiry. His contract was to end on September 2013, but was extended until September next year.
Published in The Express Tribune, May 15th, 2013.
Like Business on Facebook to stay informed and join in the conversation.
The caretaker government has pressed on with its drive to remove heads of state-owned oil and gas companies, who were appointed by the previous PPP-led coalition government allegedly on political grounds.
On Tuesday, the government terminated services of managing directors of gas utilities Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), a couple of weeks before the new government takes over.
However, sources later in the day said the SSGC managing director obtained a stay order against his removal from the Sindh High Court, arguing that there was no justification for his removal.
So far, the caretaker government has sacked heads of four oil and gas companies and one mineral development company.
Sources believe that those at the helm of affairs at three other public sector oil and gas firms including Pakistan State Oil (PSO), Inter-State Gas Systems (ISGS) and Pakistan Petroleum Limited (PPL) may suffer the same fate.
On Monday, the caretaker government removed Pakistan Mineral Development Corporation (PMDC) managing director Brigadier (Retired) Muhammad Khalid S Khokhar on grounds of irregularities in his appointment. Before that, heads of Oil and Gas Development Company (OGDC) and Government Holdings Private Limited (GHPL) were sent packing.
Earlier, the Election Commission of Pakistan (ECP) had asked the caretaker government to remove the heads of gas utilities before elections, saying they may influence the polls by initiating gas development schemes. However, the Ministry of Petroleum and Natural Resources did not agree with the ECP, arguing they were regular employees and were appointed in compliance with the rules and regulations.
“Now, the caretaker prime minister has ended prematurely the contracts of managing directors of gas distribution companies without seeking input of the petroleum ministry,” an official said.
Following a notification of termination of services by the Establishment Division, the petroleum ministry has also notified removal of SNGPL MD Arif Hameed and SSGC MD Zuhair Siddiqui with immediate effect and directed them to report to the ministry.
SNGPL Deputy Managing Director Amir Tufail will look after the affairs of the company until further orders. In SSGC, the government has given the charge to Deputy Managing Director Rahat Kamal to run the company.
Sources alleged that the Pakistan Peoples Party-led coalition had appointed chiefs of state-owned oil and gas companies on political grounds, who were expected to follow policies of the government.
SNGPL MD Arif Hameed was said to be close to former prime minister Yousuf Raza Gilani as both belonged to the city of Multan. Hameed was also believed to be close to ex-premier Raja Pervez Ashraf and provided several gas connections to captive power plants following directives from Ashraf.
This was the reason, sources said, Hameed’s contract was extended by a year, six months ahead of expiry. His contract was to end on September 2013, but was extended until September next year.
Published in The Express Tribune, May 15th, 2013.
Like Business on Facebook to stay informed and join in the conversation.