Govt in a fix after new SNGPL MD refuses to take charge

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  • Uzma Adil says removal of previous MD Arif Hameed not according to rules
  • Sources say Arif Hameed ‎unceremoniously sacked for resisting shifting of LNG circular debt on SNGPL

The government is in a quandary regarding the appointment of a new managing director for the Sui Northern Gas Pipeline Limited (SNGPL) after the newly-notified MD, Uzma Adil on Sunday refused to accept the responsibility, sources have told Pakistan Today.

According to the sources privy to the developments at SNGPL, Uzma Adil had written to the government that the notification regarding her appointment had become infructuous as the previous MD Arif Hameed had been sacked by the government and not by the SNGPL Board of Directors headed by Chairman Saeed Mehdi.

“According to Section 20 of the Companies Ordinance, the MD can only be removed by the Board of Directors with a two third majority. In Hameed’s case, the government issued his removal orders illegally as the BoD had refused to remove him from the post,” said the sources, adding that this was the reason why Deputy Managing Directors Anwar Tufail and Amjad Latif had also refused to take up the position.

“Uzma Adil is fourth on the seniority list and before her the government ‎had attempted to appoint Anwar Tufail and Amjad Latif on the post, but both men had said no to the government. Now Uzma Adil has also expressed her inability to take up the office citing similar concerns,” they said.

The sources said that Arif Hameed had been reappointed as the SNGPL MD for a two-year term just six months ago.

“Hameed was unceremoniously sacked by the government when he refused to take responsibility of the circular debt of the government’s LNG import programme which was being thrust upon SNGPL by the Petroleum and Natural Resources Ministry. The former MD believed that the LNG circular debt would be a huge burden on the SNGPL and would cause ‎the company to declare bankruptcy,” said the source, adding that the sacked MD would likely challenge his termination in the Lahore High Court in the next couple of days citing the same reasons.

Uzma Adil and Arif Hameed were unavailable for comment while the government spokesman could not be contacted.