Months gone, OGDC and PSO still without permanent MD

Summary sent to PM for selecting one of three candidates as OGDC head.

ISLAMABAD: Oil and Gas Development Company (OGDC) and Pakistan State Oil (PSO) have been running without permanent heads for months as the government has failed to fill the top slots despite repeated attempts.

The two giant energy companies, which are also state-owned, are being run with the help of stopgap measures despite the government being under pressure to hire competent people and address the country’s energy shortages.

OGDC is the country’s largest oil and gas exploration company whereas PSO is the biggest oil marketing firm. For the third time, advertisements have been published for appointing managing directors of these companies.

Earlier, the OGDC managing director was appointed but he refused to join because of government interference in the company’s affairs.

According to officials, Adviser to Petroleum Minister Zahid Muzaffar is currently dealing with day-to-day affairs of the company as chairman, which is contrary to recent practice as the chairman comes from the private sector. Two senior company officials Bisharat Mirza and Tahir Shaukat are also looking after the affairs of OGDC.

The Ministry of Petroleum and Natural Resources has sent a summary to the prime minister for selecting one out of three names – Bisharat Mirza, Masood Nabi and Tahir Shaukat – as OGDC managing director.

Separately, the government has given advertisements for hiring the PSO managing director for the third time in 16 months. But this time the criteria have been revised apparently to bring a man of government’s choice.

At present, Shahid Islam, who heads Government Holdings Private Limited, is running PSO as acting managing director. His extended term is going to end soon but he is likely to be given another extension for three months.

Earlier, the Ministry of Petroleum had asked the prime minister to give Islam extension for six months but the premier dismissed the suggestion and approved his hiring for three months as acting in charge of the company.

In organisations like Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Limited (SNGPL), Pakistan Petroleum Limited (PPL) and OGDC, the selection of chief executive is made on the recommendation of the respective board of directors, but for PSO a different set of criteria was applied.

In the fresh advertisement, the conditions were eased in an attempt to allow aspirants having graduate in economics, a degree in law, engineering or business administration to apply. Sidat Hyder has been picked as consultant to shortlist the candidates.

It is surprising that for being appointed general manager, the candidate should hold a masters’ degree whereas for the post of managing director the government is content with only a graduate.

Insiders say certain officials of the Ministry of Petroleum had forced PSO to ease the criteria in a bid to favour a retired general manager of the company. That official was terminated from service twice and was reinstated in 2008 by then prime minister Yousaf Raza Gilani. He got tens of millions of rupees as arrears.

He retired from PSO as general manager in September 2014 and since then had been lobbying for the post of managing director.

Published in The Express Tribune, April 8^th, 2015.

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