Tensions Escalate: SSGC Chairman and MD Lock Horns

By Omaid

The tension between the chairman of the board of directors and the managing director (MD) of Sui Southern Gas Company (SSGC) has escalated, with the former striving to remove the MD.

This conflict originated during the previous caretaker government’s tenure when the then-caretaker petroleum minister, Muhammad Ali, supported the MD, while the chairperson of the SSGC board sought the MD’s dismissal.

Amidst this scenario, the petroleum division intervened and directed the board of directors not to make senior appointments, effectively preventing the removal of the MD.SSGC Board Allows MD to Continue Service

Although the current board has completed its four terms, it shows no inclination to step down.

Currently, tensions between the chairperson and the MD of SSGC have resurfaced, with the MD asserting that the board of directors cannot extend their terms further, contrary to the chairperson’s desire to retain the position.

Sources revealed to Newztodays that the primary issue stemmed from the PPP, which, having supported the current government, sought to appoint the chairman of the SSGC board and directors of its choice, causing delays in the appointment of a new board.

The role of the Securities and Exchange Commission of Pakistan is pivotal, as it has been permitting extensions in the tenure of the board of directors, thereby setting a negative precedent for other corporate entities.LPG Import Scam: FIA Probes SSGC Management and Officials

The caretaker government penned a letter to the current board advising them to appoint a new board of directors.

Previously, the SSGC board elections were slated for October 23, 2023, but were postponed.

Despite the expiry of the fourth time extension, the current board persists.

SSGC, the worst-performing gas utility, has incurred significant losses, including revenue losses, attributable to adhocism within the company.

The role of the Petroleum division has also been criticized for supporting the extension of the current SSGC board’s tenure.

SSGC stands as the sole company repeatedly extending its board’s tenure, in contrast to other companies with regular boards, which are faring well.