Monday, December 21, 2009

PSO says new board members appointed by govt














ISLAMABAD: The management of Pakistan State Oil (PSO) has distanced itself from the appointment of six members of its board, and said it was the sole prerogative of the government to appoint members of PSO’s board.

Commenting on a Dawn report, the PSO said in a statement that chairman of the board Sardar Yasin Malik had resigned due to his hectic business commitments and a farewell lunch was hosted in his honour by the management, which had played no role in his resignation.



Separately, the petroleum ministry claimed that changes were made in the boards of PSO and OGDCL because most of the members had either crossed the age limit or served out their terms. They, therefore, had to be removed from the board.

In a statement, the ministry said that it was customary for the shareholders to make changes in the board of directors from time to time in line with changing business and company requirements.

A perusal of the official record, including summaries for the restructuring of PSO board, however, presented a different picture which was highlighted in the Dawn report. For instance, in a letter written by the PSO managing director, the petroleum secretary was informed that ‘the conduct of present chairman PSO is not conducive to the position… and is a impediment to the undersigned in managing’ the company affairs.’

The petroleum secretary was advised ‘that Sardar M. Yasin Malik may please be removed from the position of chairman PSO with immediate effect to restore good governance in the company.’

Likewise, in the annex-1 attached to the summary sent to the prime minister, the petroleum ministry had highlighted the composition of the old board along with reasons for some members’ proposed removal from PSO board. Four of the members were described as personal friends of former caretaker prime minister Muhammadmian Soomro. And three were either described as overage or supposed to have served out their terms.

Similarly, two members were reported to have conflict of interest with PSO for showing ‘interest in the privatisation of PSO or (being) ex-employee of Shell Pakistan.’

No comments: