Federal Cabinet Likely to Approve Restructuring of PARCO Board

cabinet is likely to grant approval to the propose restructuring of the Board of Directors (BoDs) of PARCO today

Web DeskNovember 3, 2020

ISLAMABAD: Petroleum Division has now asked federal cabinet to choose one directors from a new panel of three candidates for the PARCO board because a member of the Competition Commission of Pakistan (CCP) had earlier become an approved independent director.

According to well-informed sources, the federal cabinet is scheduled to be held on Tuesday (3rd November 2020) in a Committee Room of the Prime Minister’s Office at 1200 hours under the chair PM Imran Khan to take up a nine point agenda and, cabinet is likely to grant approval to the propose restructuring of the Board of Directors (BoDs) of PARCO.

Sources said that in pursuance of the government policy for the appointment and empowerment of non-political and autonomous boards as well as selection of outstanding professional Chief Executive Officer (CEO) on merit, the restructuring of the BoDs of PARCO was submitted to the federal cabinet on 21st April, 2020. Subsequently, the cabinet in its meeting held on 28th April, 2020 approved the proposed reconstitution of the BoDs of PARCO.

Latter, it came to the notice of the petroleum division that one of the approved independent directors namely Ms. Bushra Naz Malik is holding the position of member in the Competition Commission of Pakistan (CCP).

The sources said that Ms. Bushra Naz Malik did not declare her engagement with the CCP throughout the entire short listing process. Moreover, the same was not indicated in the low down report.

They said that a clarification was sought from Ms. Bushra Naz Malik regarding the possibility of conflict of interest, arising from her employment in CCP. And, in response, she relied on Finance Division’s letter dated 29th April, 2019 wherein the finance division allowed her to continue to be a member of 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.

Conversely, Ms. Bushra Naz 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 Companies Act, 2010. They said in the same vein, since PARCO operates in a competitive market environment with various competitors in both private and public domain, Ms. Bushra Naz Malik’s position as a member of CCP may also potentially give rise to a situation of conflict of interest.

As per sources, in view of the above, the petroleum division nominated Ms. Huma Ejaz Zaman in lieu of Ms. Bushra Naz Malik as a director on the board of PARCO. A summary for the Prime Minister was submitted on 22nd June, 2020. The PM had seen and was pleased to direct that petroleum division shall submit a panel in order of priority for nomination of one amongst them as a director on the Board of PARCO.

Subsequently, the PM has seen and directed that petroleum division shall place the panel of three candidates including Ms. Huma Ejaz Zaman, Mz. Zara Fateh Qizalbash and Ms. Farah Agha. Similarly, the CVs in respect of the above, concurrence of the cabinet is solicited for the nomination of one of the candidates from the panel given as a director on the PARCO’s Board of Directors.

It is also learnt from sources that the Minister of Energy (petroleum division) has seen and authorized the submission of this summary before the federal cabinet. And, now cabinet is likely to choose one director from a panel of three candidates to fill the position of a board of director of PARCO.

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, out of which the GoP nominates six and four represents ADPIC.

Web DeskNovember 3, 2020