A correspondent for us
ISLAMABAD: The third time around, the Petroleum Division seeks to prolong the SSGC board’s term.
Regarding a third extension of the business board’s tenure, the Petroleum Division has requested that Sui Southern Gas business (SSGCL) file a complaint with the Pakistani Securities Exchange Commission (SECP).
Previously, the board received two extensions from the government.
The SSGC board’s tenure is currently being extended for a third time with SECP’s approval.
The Federal Government’s Board of Directors (BoDs) nominations for SSGCL are still being finalised, according to a letter from the Petroleum Division to SSGC.
This is because the same process will take longer to complete and they have to adhere to a broad number of legal and codal criteria, including approval from the Federal Cabinet.
As a result, the Board of Directors elections for SSGCL may be postponed for an additional 180 days to give the Federal Government time to complete all legal requirements for the upcoming election of SSGCL BoDs, including finalising the nominations of Directors for the SSGCL BoDs, the Petroleum division said.
The SSGC board’s term concluded on October 28, 2022. The ministry still hasn’t selected new leaders after five months.
However, the ministry requested a three-month extension of the board term, which was granted after a one-time exception to SECP regulations was granted by the Securities and Exchange Commission of Pakistan (SECP).
In order to appoint new directors by January 26, 2023, the SECP was given an extension of 90 days by the Ministry of Energy’s Petroleum Division.
On April 26, 2023, a further postponement that was granted came to an end.
SSGC was now instructed by the government to approach SECP for a further extension.
The company, which was formerly the best local public utility, is currently unable to provide a consistent supply of gas to its consumers and has been suffering financial losses as a result of gas theft and leaks for the past three years.
The coalition government must act responsibly and choose directors who have the necessary qualifications to guide SSGC out of its current mess, according to the company’s stakeholders.
