LAHORE                    -               This refers to the reports being published by a certain section of media regarding the management of Sui Northern Gas Pipelines Limited.

It must be noted that only the BOD of the company can carry out any disciplinary proceedings while MD and DMD are exclusively appointed by the BOD. The BOD in its meeting of April 11, 2020 had decided that there was no evidence forwarded by the Petroleum Division against MD or DMD and hence the matter cannot be investigated further. The BOD had decided that the scope of enquiry has to be kept restricted to the observations raised by the PM office only which were raised while again rejecting the summary for appointment almost 3 months ago. These observations were communicated to SNGPL on March 19, 2020. The BOD did make a fact finding committee to prepare a report on the allegations which specifically comprised of three members namely Ayub Chaudhury AS Petroleum, Ahmad Aqeel and Manzoor Ahmed. The TORs of the Fact Finding Committee was to look into material available with the Ministry regarding lowdown of MD and DMD.

It is highlighted that the Fact Finding committee has not issued any charge sheet against Amer Tufail or Sohail Gulzar DMD of SNGPL. Instead a letter was issued by one of the directors requiring certain information about previous inquiries and or data as old as 10 years having no direct reference to the matter raised by the PM Secretariat even though he is not the member of the committee. This letter was sent on a much belated date of April 17 2020 which was received on April 20 at SNGPL offices. This can be construed as an attempt to come up with revised set of charges to fill the vacuum since no documentary evidence of any of the charges earlier levelled are available. It can be easily inferred that no wrong doing took place in the first instance. This is also an attempt to marginalize the independent operation of the board and is against the letter and spirit of corporate governance rules.

This is also a violation of the fiduciary duty of such director.

It is worth mentioning that SNGPL remains without a permanent MD for over a year now while acting MDs are being appointed almost on a rotational basis. The recruitment process has been completed twice but shelved at the last minute which is severely hindering the working of the company. Board of SNGPL is committed to ensure more transparency in the company for which various reforms have been initiated which are being actively implemented by the Acting MD. It is SNGPL’s considered view that the acting MD SNGPL enjoys full support of BOD and the present malafide campaign is simply an attempt to sabotage the process of reforms initiated by the board and its committees and being carried by the acting MD.