ISLAMABAD - The Ministry of Energy (Petroleum Division) has initiated the process of the removal of the managing directors of Sui Southern Gas Company Limited (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) through the BODs, after the prime minister directives regarding their removal.

“The Prime Minister in a letter asked the Ministry of Energy (Petroleum Division) to remove the MDs of both the state owned sui gas companies immediately,” official source told The Nation.

“On Wednesday, we have received the directives from the PM office regarding the removal of both the MDs and we have started the requisite procedure for the removal,” said the source. The PM orders has further directed to take action under the law (Company act), said the source. Amjad Latif is the MD of Sui Northern Gas Pipeline Limited while Muhammad Amin Rajput works as an acting MD of Sui Southern Gas Company Limited (SSGC).

The company act regarding the removal of the MDs will be followed and they will be removed through BODs, said the source.

Although Managing Director SSGC has acting charge and he can be simply de-notified from his post, however MD SNGPL requires the BOD decision. However the source said that even MD SSGC will be removed through BOD.

According to the companies act 2017, “the board (BOD) by resolution passed by not less than three-fourths of the total number of directors for the time being, or the company by a special resolution, may remove a chief executive before the expiration of his term of office notwithstanding anything contained in the articles or in any agreement between the company and such chief executive,”.

The companies act further said: “Notwithstanding anything contained in this section, the government or an authority or a person authorized by it shall have the power to remove chief executive of a company where more than seventy-five percent of the voting rights are held by the government,”.

However in both the gas companies the government share in BOD is less than 75 percent and the MD can be removed by resolution of BOD.

The decision was taken on the suggestion of a fact-finding committee formed to probe the gas crisis which had hit the country during second week of December last. The inquiry report was presented in the meeting of the cabinet committee on energy presided by the prime minister on Tuesday.

It is pertinent to mention here that following the gas crisis in the country, the Petroleum Division, on the directive of the prime Minister, had constituted fact-finding committee headed by Ogra Chairperson Uzma Adil to investigate the matter and submit a report within 72 hours. Director General Petroleum Concession (DGPC), Qazi Saleem Siddiqui, DG Gas Shahid Yousaf and DG Liquefied Gas Imran Ahmad were the members of the committee. The prime minister was dissatisfied with the committee report as it did not hold anyone responsible and directed the Ministry of Petroleum to compile a fresh report by December 28.