Supreme Court. PHOTO: EXPRESS/FILE
Masood Siddiqui has been reinstated as CEO of the Oil and Gas Development Company Limited (OGDC) on Thursday, 17 days after he was removed by the interim government on charges of misusing his authority and causing financial losses to the organisation.
“The decision of his removal has been reversed in the light of Supreme Court orders to suspend all the orders of appointment and transfers by caretaker setup [sic],” read a company statement issued here.
In an unprecedented move, the interim government had replaced the heads of at least eight organisations, including OGDC, Sui Northern Gas Pipelines and Sui Southern Gas Company. The move was seen by many as a politically-motivated decision.
The Supreme Court overturned the postings and transfers on Wednesday, saying they fell outside the mandate of the interim government.
Siddiqui’s sacking had sparked a tit-for-tat battle of words with Petroleum Minister Sohail Wajahat, who had claimed the OGDC CEO had misused company funds.
Wajahat accused Siddiqui of causing financial losses by hiring a bulletproof car, regularising contract employees and subverting an internal investigation.
In response, Siddiqui said the use of the bulletproof car in Karachi was authorised by the company board as he was receiving threats. Contract employees were regularised to do away with contractors who were earning commissions but not paying workers on time, he said.
Siddiqui was appointed less than 11 months ago by the Pakistan Peoples Party (PPP) government. He is a petroleum industry veteran, having worked at Premier Kufpec, ENI and other companies. He had also formed his own company, Alpha Petroleum, a few years ago.
When contacted, Siddiqui affirmed that he resumed office in the latter half of the day. He said the chairman of the OGDC Board of Directors had asked him to come and resume work following the orders of the Supreme Court.
“The rules and procedures for removing the head of a state-run organisation are very clear – an individual or a ministry cannot interfere in a company’s organisational matters on their whims,” Siddiqui said. “As a matter of fact, the Securities and Exchange Commission has clear guidelines in this regard. Even the Supreme Court says you cannot remove the managing director without proper reason,” he added. “If some allegations have been levelled against the MD, the board of directors needs to give him a proper chance to clear his or her position,” Siddiqui added.
The management of OGDC has been changed multiple times over the past four years. While the company has posted a steady rise in profits due to better oil and gas prices, there hasn’t been any substantial expansion in hydrocarbon reserves.
As the Pakistan Muslim League-Nawaz prepares to form the next government, anxiety has increased among executives of state-run oil and gas firms. People close to the party say it has decided to overhaul the boards of directors of public sector companies, and give them the task of appointing their own CEOs.
“The trend where the prime minister selects the top boss at such companies must end once and for all,” a former industry executive said.
Siddiqui said the incoming govt will have to follow laid down regulations if it wishes to bring changes in state-run organisations.
The company says that development projects accelerated under Masood Siddiqui, including Kunnar Pasakhi Deep-Tando Allah Yar, Uch Development Project and Dakhni Development Projects.
“During this period, oil and gas fields dormant for the last decade were activated, such as Noor Bagla and Sinjhoro Fields were put on production.”
Company officials have raised concerns about the important Kunnar Pasakhi Deep-Tando Allah Yar field project, recently awarded to a Chinese firm for $197 million.
Published in The Express Tribune, May 24th, 2013.
Like Business on Facebook to stay informed and join in the conversation.
COMMENTS (5)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
cant understand you guys ghalat tareeke se howa hoo and you like it toh sai ...and if you dont like it toh ghalat ...@omer:
yes and ignore the fact that under his leadership the company grew by 19% and share price went up from 150 to over 200, all in a span of 9 months. that's the problem with people like you. All you could take out from the article was his 1.2 million rs bullet proof car. the fact that at such a young age he has managed to turn ogdc around is an example of the right person being at the right job.
Confusion Confusion ,,,i thot supreme court said transfers and postings ...well this was an appointment ... one more confusion is that transfers and postings done after 11th may ...Well as far as i see it He was removed before that ...
Under the rules, the headhunter was also required to advertise to fill the post in a bid to ensure transparency while Masood Siddiqui had not applied in response to the advertisement published in national newspapers. He was awarded contract of three years’ service while the contract period advertised in the papers was two years. He was also 49 years whereas he was supposed to be 55 years as per the recruitment policy.
I Think Supreme Court should take notice of this as well...
Wow Well done the person who misused his powers is back ... 1.2 million on bullet proof car...Where are we living The same VIP culture ,,, Pakistan will never change