SSGC Board Allows MD to Continue Service

By Newztodays Team

The row between the Petroleum division and the board chairperson settled down as the SSGC Board has decided that the existing managing director of SSGC will continue its service till the finalization of the new head of the utility.

The board of directors of Sui Southern Gas Company Limited (SSGC) had earlier canceled a meeting scheduled at the eleventh hour to consider the extension of the Managing Director’s (MD) tenure and to hold elections to appoint a new board.

The Petroleum Division had again and again directed Sui Southern Gas Company Limited (SSGC) to grant an extension to the Managing Director (MD) and hold early elections to appoint a new board of directors.

The board was originally scheduled to meet on Saturday, but it surprisingly canceled the meeting, citing a lack of quorum.SSGC, Petroleum Division Locked Horns in Battle over MD’s Extension

Sources suggest that this cancellation may be a delaying tactic that could escalate tensions between the Petroleum Division and the board of directors. The current board’s tenure has already expired and has been granted four extensions.

The Petroleum Division had sent letters to SSGC’s company secretary on December 4 and December 8, 2023, but there has been no implementation thus far. In a recent letter dated January 25, the Petroleum Division expressed concern that the SSGC Board had sought legal opinion regarding the terms of the contract of the MD, despite the Ministry’s advice and directions dated December 28, 2023, based on legal grounds/opinion.

The Petroleum Division reiterated that the directive in its letter dated December 28, 2023, which prevented the SSGC from removing the existing Managing Director and making other appointments, is still in effect for administrative arrangements, ensuring continuity without prejudice.

The Petroleum Division is calling for early elections. Previously, the federal government had barred the current Board of Directors (BoD) of Sui Southern Gas Company (SSGC) from appointing a new Managing Director or filling senior positions, transferring this responsibility to the incoming board. The company secretary was directed to promptly conduct elections for a new board of directors, emphasizing the urgency due to potential cash flow issues and the need for management continuity. The current Managing Director’s tenure is set to expire next month.