Cabinet removes CCP Member from Parco
Aftab Ahmed
The Cabinet has finally removed the Member Competition Commission of Pakistan (CCP), Ms. Bushra Naz, from the board of directors Pak-Arab Refinery Limited (PARCO).
Ms. Malik had not declared her engagement with the CCP throughout the entire shortlisting process. Moreover, the low-down report had not indicated her appointment in CCP.
Petroleum Division had sought clarification from Ms. Malik regarding the possibility of a conflict of interest arising from her employment in CCP.
In response, she relied on the Finance Division (FD)’s letter dated 29th April 2019. She claimed that the finance division 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.
Conversely, Finance Division had directed Ms. Malik to resign from the Board of Fauji Fertilizer Co. Ltd. Finance Division did it on the premise that it would give rise to a conflict of interest while exercising powers against anti-competitive behavior under the Competition Act,2010.
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Since PARCO operated in a competitive market environment with various competitors in the private and public domain in the same vein, the petroleum division argued that Ms. Malik’s position as a member of CCP might also potentially give rise to a situation of conflict of interest.
Restructuring of Parco Board
Meanwhile, the Petroleum Division informed the Cabinet that PARCO was 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 was ten (10), out of which the Gop nominates six (06) and four (04) represent ADPIC.
The government follows a policy for the appointment and empowerment of non-political and autonomous Boards and selecting outstanding professional CEOS on merit. Petroleum Division had submitted the BoDs of PARCO to the Cabinet on 21st April 2020.
Subsequently, in its meeting held on 28th April 2020, the Cabinet approved the proposed reconstitution of PARCO’s BoDs.
Later, it came to the notice of this Division that one of the approved Independent Directors, namely, Ms. Bushra Naz Malik, held the position of Member in the Competition Commission of Pakistan (CCP).
New board member appointed
Given the above, the Petroleum Division nominated Ms. Huma Ejaz Zaman instead of Ms. Bushra Naz Malik as a Director on the PARCO Board.
Moreover, Petroleum Division submitted a summary to the Prime Minister on June 22, 2020. However, the Prime Minister had seen and directed to submit a panel of three candidates.
READ Cabinet approves restructuring of Parco’s board of directors.
Accordingly, Petroleum Division submitted the panel, in order of priority, to nominate one amongst them as a Director on the Board of PARCO.
Subsequently, the Prime Minister directed that the Petroleum Division place the following three candidates’ panel before the Cabinet for concurrence. The panel included Ms. Huma Ejaz Zaman, Ms. Zara Fateh Qizilbash, and Ms. Farah Agha.
Meanwhile, the Petroleum Division sought the approval of the Cabinet to the nomination of one of the candidates from the panel given above as a Director on the PARCO’s Board of Directors.
The Cabinet considered the summary titled ‘Restructuring of the Board Directors of PARCO. It approved the nomination of Ms. Huma Ejaz Zaman as a Director on the PARCO’s Board of Directors.
