ISLAMABAD: The federal government has reportedly decided to replace one of the members of PARCO Board of Directors, Bushra Naz Malik with Huma Ejaz Awan due to conflict of interest, well informed sources told Business Recorder.
Pak Arab Refinery Limited (PARCO) is a Public Sector Limited Company registered under the.Companies Act, 2017. The Company was established as a joint venture between the Government of Pakistan (GoP) and Abu Dhabi Petroleum Investment Company (ADPIC) at a ratio of 60:40, respectively. The total strength of the Board of Directors (BoDs) of PARCO is ten, with GoP nominating six and four representing ADPIC.
In pursuance of the incumbent Government's policy the restructuring of the BoDs of PARCO was submitted to the Cabinet on April 21, 2020. Subsequently, the Cabinet in its meeting held on April 28, 2020 approved the proposed reconstitution of the BoDs of PARCO. Later it came to the notice of Petroleum Division that one of the approved Independent Directors namely Bushra Naz Malik holds the position of Member in the Competition Commission of Pakistan (CCP).
Malik did not declare her engagement with the CCP throughout the entire shortlisting process and this aspect was not indicated in the low down report. A clarification was sought from Malik regarding the possibility of conflict of interest, arising from her employment in CCP. In response, she relied on Finance Division's (FD's) letter dated April 29, 2019 wherein FD allowed her to continue to be a member on the Boards of Kenya and Centre of International Forestry Research Indonesia, UNHCR, Switzerland Pak Industrial Development Corporation (PIDC), Karachi and Trading Corporation of Pakistan Karachi. Malik was directed by Finance Division to resign from the Board of Fauji Fertilizer Co. Ltd. on the premise that it would give rise to conflict of interest, while exercising powers against anti-competitive behavior under Competition Act, 2010. Petroleum Division argues that since PARCO operates in a competitive market environment with various competitors in both private and public domain, Malik's position as a member of CCP may potentially give rise to a situation of conflict of interest.
After going through all the circumstances, Petroleum Division nominated Huma Ejaz Zaman in lieu of Bushra Naz Malik as a Director on the Board of PARCO and a summary for the Prime Minister was submitted on June 22, 2020. The Prime Minister directed the Petroleum Division to submit a panel of three candidates. Accordingly, Petroleum Division submitted the panel, in order of priority, for nomination of one amongst them as a Director on the Board of PARCO. Subsequently, the Prime Minister directed the Petroleum Division to place the following panel of three candidates before the Cabinet for concurrence: (i) Huma Ejaz Zaman; (ii) Zara Fateh Qizilbash; and (iii) Farah Agha on the PARCO Board.
Copyright Business Recorder, 2020
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