Gas crisis: SNGPL, SSGCL MDs asked to tender resignations or face proceedings

The managing directors of Sui companies - Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) - have been asked to tender their resignations or face proceedings against them over gas crisis during December, reliable sources said.
The Ministry of Energy (Petroleum Division) has initiated the process for removal of managing directors of Sui companies through the boards of directors (BODs) following the directives of Prime Minister on Wednesday last. Meanwhile, both the managing directors were given option to tender their resignations, the sources said.
Amjad Latif is the managing director of SNGPL while Muhammad Amin Rajput works as an acting managing director of SSGCL. As per Company Act 2017, managing directors can be removed only through board of directors, the source said.
The Companies Act 2017 states, "The board (BOD) by resolution passed by not less than three-fourths of total number of directors for 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 decision was taken on the suggestion of a fact-finding committee formed to probe the gas crisis which hit the country on December 12, 2018.
The inquiry report was presented in the meeting of the Cabinet Committee on Energy presided over by the Prime Minister on Tuesday last.
The source said that the fact-finding committee did not fix responsibility of anyone but presented facts which led to gas crisis in Sindh and Punjab in the second week of December. The Petroleum Division fixed the responsibility in the light of fact-finding report submitted to the division.
Following gas crisis in the country, the Petroleum Division on the directive of the Prime Minister had constituted fact-finding committee headed by the Oil and Gas Regulatory Authority (OGRA) Chairperson Uzma Adil to investigate the matter and submit a report within 72 hours.
In November 2018, Minister for Petroleum Ghulam Sarwar Khan announced that all politically motivated boards of directors of oil and gas companies would be reconstituted in the next 100 days in a bid to ensure transparency in the hiring process.
Speaking at a press conference, the Petroleum Minister said the boards of directors of oil and gas companies were constituted on political grounds and against the merit. He said the current government reconstituted the boards of directors of six companies while the remaining would also be reconstituted in the next 100 days.