Pakistan

Former PSO MD cleared of hefty pay accusation

Ministry’s body recommends his salary, perks should be released

Zafar Bhutta October 15, 2015

The federal government gave Janjua, a senior general manager of PSO, additional responsibility to look after the company’s affairs as the managing director from July 29, 2013. PHOTO: FILE

ISLAMABAD:

A three-member committee, constituted by the Ministry of Petroleum and Natural Resources, has suggested in its report that no excessive payments were made to the former acting managing director of Pakistan State Oil (PSO) and withholding his pay and perks will not be appropriate.

Being a senior officer of PSO, Amjad Parvaiz Janjua was given the slot of acting managing director in July 2013 to look after the affairs of the company. However, he was suspended in the wake of acute petrol shortages in Punjab in January this year and since then his salary has not been released on charges of higher-than-required pay.

In Janjua’s place, Shahid Islam, Managing Director of Government Holdings Private Limited, was brought in the company, who withheld the salary and perks of the former. Islam had got all powers following the dissolution of PSO’s board of management by the Ministry of Petroleum in the face of the petrol crisis.

“The committee firmly believes that no excess payment has been made to Amjad Parvaiz Janjua and the withholding of his pay and perks is uncalled for. Being a permanent company employee, his pay and perks may be released from the same time along with arrears, if any,” recommended the committee, headed by the petroleum ministry’s joint secretary, in its findings.

The committee observed that the federal government gave Janjua, a senior general manager of PSO, additional responsibility to look after the company’s affairs as the managing director from July 29, 2013.

The board of management, in its meeting held on June 26, 2014, unanimously approved the pay and perks. PSO also got legal opinion from its lawyers, who suggested that the board had the necessary capacity and authority to fix the remuneration. Consequently, the salary was paid to Janjua.

The committee also noted that the board chairman sent a letter on June 27, 2014 to the petroleum minister, conveying the board’s decision about the MD’s salary for information, record and any further action, if required.

“Since it is a principle of law that the salary/benefit once paid to an employee cannot be withdrawn, payments to Janjua in compliance with the board’s decision have become a past and closed transaction,” said the committee in its report.

Published in The Express Tribune, October 15^th, 2015.

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COMMENTS (16)

Mujahid | 9 years ago | Reply It is a cruel joke to try to scapegoat corporate officials by holding them responsible for the petrol shortage scandal. Whom are we trying to fool? There are so many national and international companies in oil sector. Do they not know who was responsible? Are they not telling that to their friends and family? Even the kids know about the famous scapegoating and about where the responsibility lies!

Evil Fighters | 9 years ago | Reply First of all, there was no justification of stopping his salary. Secondly, there was no justification of forming a committee in the ministry to investigate the case. Thirdly, can there be any justification for delaying the implementing the committee’s recommendations?

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Sher Sultan, LLB | 9 years ago | Reply The employer of the aggrieved corporate professional has a legal responsibility to ensure that his salary is regularly and properly paid to him. The employer cannot hide behind the unfairness of the government. Even in case of criminal action on part of an employee, there are long drawn disciplinary proceedings and hearings and court appeals etc before a single increment can be withheld. There is no way to withhold somebody’s salary

Azra Khan | 9 years ago | Reply What goes around comes around. Shahid Islams of this world cannot get away with this, but in short-term maybe!

Zeeshan Khosa | 9 years ago | Reply Mr. Janjua can file a case against his company for its illegal action even if that is taken on dictate of the government. Those responsible to pay salaries to the employees have an official duty to deal with such cases lawfully. They also have a moral duty to follow the dictate of conscience lest it happen to them.

Nazir | 9 years ago | Reply * Eye opening facts are revealed. An honest professional and dynamic leader who in a year or so made real turnaround in the key performance indicators of PSO. Under his short tenure income and profit of the company increased many fold was unlawfully removed from the position of MD and as a result yesterday I was reading that the company's financial and physical performance declined badly. To add fuel to the fire, I was surprised that his salary was stopped for last nine months. How can we attract good professionals to serve our country.*

Adv Basharat | 9 years ago | Reply I would have loved to help in this case but I’m based in Dubai. In a law-abiding society, it is unthinkable that someone’s salary can be stopped in this daredevil way. I shudder to think what our corporate leaders are going through! In Dubai, this would have breached a number of provisions of the Labour Law. Section 4 (Articles 55-64) of the UAE Labour Law (No. 8) of 2000 deals with remuneration and requires the employer to pay regular salaries. Article 60 prohibits the employer from deducting any amounts of money

Qasim Khan | 9 years ago | Reply Brother Junejo, I’m a small time corporate professional but my advice to you will be not to resign like others did. Their pressure on you will mount but don’t please loose faith in power of truthfulness. I know it is already hells of pressure as a few days of delay in salary can offbalance the entire family of an employee.

Advocate Rana Zarnab | 9 years ago | Reply It is ludicrous that the government is second-guessing the Board of a company! To whom is a company employee responsible other than the Board? Who monitors the performance of an employee? Is it not unbelievable that the government is itself disrespecting and even violating the rules of corporate governance? What kind of talent will the government expect to attract to the public sector after all this? Cronies and pawns?

Nawab Zada Sher Afghan | 9 years ago | Reply I know Mr. Janjua, he is a well respected corporate professional having prestigious Ivy League postgraduate qualifications. He has been a Chevening Scholar and has been working as CEO since 2008 before he served as acting CEO in PSO as all oil companies had acting CEOs because of the long drawn process of CEOs appointment that the government claimed to have adopted in view of some court orders. I know it will not be his first reaction to be a litigant but at some point you need to stand up for your right! That too is the Ivy League spirit!! I rate him a valuable asset and wish him an honourable success.

Ali Chutha | 9 years ago | Reply @Ali Zaman: PSO cannot and should not be treated as a government department. It is a corporate body.

Cheema | 9 years ago | Reply Let’s stick to principle. High or low salary is a relative term. The principle is that what the Board of a company has decided as a fair and appropriate salary for an employee should be his salary. If the government also has to approve it, it should do so trusting the Board’s judgment based on a graceful consideration instead of through inquiry committees etc. I salute our civil servants who are upholding the principles of corporate governance as members of such committees.

Javaid Ch | 9 years ago | Reply I am an oil sector professional. I worked in PSO and am now working for a private oil marketing company. I can clarify that PSO’s experience is highly prestigious and professionals of PSO move to other companies like professionals of other companies move to PSO. We should motivate the professionals to stay on in PSO on the salaries which are lower than those offered by other companies but very high as compared to those of government officers of course. It is the honour and prestige that keeps them in PSO. Take it away and they are gone!

Faheem | 9 years ago | Reply Oh what a shame!! Our energy sector has been jinxed! The former MD of SNGPL was fired and then forced to resign on restoration by the court. Director Law of PPIB resigned when forced to act illegally and the same has been the case with MD of CPPA. Even the regulator – Chairman of OGRA is staying on the court’s order. And here is this corporate professional silently suffering! Can a researcher identify a common denominator? What’s happening in this country for God’s sake?

Baber Ali | 9 years ago | Reply Oh my God, being retired corporate executive, I have been reading what was happening in PSO, I did not how that Mr Janjua ex MD who had been given turnaround in PSO has humulated in this way without his fault. Shame on the government.

Ali Zaman | 9 years ago | Reply What is happening in PSO. Stoping salary of a senior, respected, honourable international professional on false grounds by a controversial ex MD is volumenly condemned. This naked violation of law of land upheld by the superior judiciary.

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