ISLAMABAD: Instead of a downward rationalizing of salary packages of the top management of Inter-State Gas System (ISGS) and carrying out a performance audit of ISGS MD, the Petroleum Division has sent a summary to ECC seeking approval of slashing down the company's workforce to 35 people from 55, strengthening the narrative that there is a huge surge in unemployment during the current regime so far.
According to the ECC summary, a copy of which is available with The News, the company’s workforce had already been reduced on account of slow progress as it is working with 55 as against 93 sanctioned positions. Now the brutal plan to further retrench employees to 35 is on way for approval.
Interestingly, the Petroleum Division has sent a letter to the Board of Directors of Inter-State Gas System, asking to take action against MD Mobin Saulat in the light of NAB letter which says he cannot represent Pakistan abroad as he is allegedly involved in corrupt practices. The Petroleum Division, instead of carrying out his performance audit, who miserably failed to initiate and execute any project in the last over 10 years, has subscribed to a funding plan to the ISGS with rationalization of the workforce. The Petroleum Division has sent a summary to the ECC, which may accord approval to the proposal in its next meeting. When contacted, secretary Petroleum Division confirmed the development saying that officials of the ISGS deputed in Petroleum Division will be repatriated to ISGS that will lay them off later. According to the proposal, the said officials should either be absorbed in the Petroleum Division or laid off, saving Rs32 million per annum.
When asked as to why the Petroleum Division has failed to carry out the performance audit of the Managing Director who has not only failed to deliver any project but was also involved in corrupt practices and has also become an approver against former prime minister Shahid Khaqan Abbasi in the case of award of contract to Engro for building LNG terminal-1, knowing the fact that approver means partner in crime, he said that the Petroleum Division cannot take action as prime minister is the authority who appoints managing director and it is the board of directors that can take action and forward its recommendation to the PM for final action. However, the Petroleum Division has not only sent the NAB letter but also The News story published on January 6, 2020: "ISGS MD on way to expulsion as an approver cannot continue as MD". He said it is the BoD that has the authority to take action against him.
This scribe also sent a questionnaire to Mobin Saulat, MD ISGS, saying: ‘ Has the summary for ECC 'Continuation of funding facility to ISGS' been approved or not? I came to know that you are going to lay off ISGS employees which are deputed in the petroleum division. What will be the impact on the company in terms of savings and who deputed them and if you have deputed them, then don't you think that you should be responsible for it? In summary, there is no mention of the IP gas line inactive projects. Can we construe that IP is no more on the agenda of ISGS. Are you sure, you will be able to complete TAPI, North-South Gas Pipeline, undersea Russian pipeline, and underground storages and if not then who will fund ISGS in the future? Will the amount be provided from the gas infrastructure development cess (GIDC) account to run ISGS expenses which were meant to be used in the construction of the pipeline. Will it be justified? Please answer me in detail.
But Mr Mobin Saulat did not respond saying he has been barred from Petroleum Division to talk with media. The same questionnaire afterward was sent to the spokesman of Petroleum Division Ayub Chaudhary, Additional Secretary (P), two days ago, but he didn’t turn up with any response.
The summary submitted with the ECC seeks approval of the report on rationalization of operational or administrative expenditures of Inter-State Gas System Private Limited. The ECC has been recommended that GHPL be tasked to continue funding all project activities of ISGSL as a 100 percent subsidiary company; rationalized expenditure for the company as approved by the ISGS/GHPL boards including TAPI and NSGP commitments be funded through GIDC funds, if possible; and the loan agreement between ISGSL and GHPL be approved for extension for a period of two years. There will be a stipulation in the agreement that (a) Any extension thereafter be subject to progress on the undertaken project, and (b) as soon as the first project reaches closure, ISGS needs to become self-sustaining and (c) Upon meeting conditions (b), It should put forward a business plan as how it will restore the loan. The summary also mentions that the company’s workforce had already been reduced on account of slow progress as it is working with 55 as against 93 sanctioned positions. The budgeted hiring of additional 11 executives that were in process or planned during the year has been suspended. Further, The ISGS executives temporarily attached with Minister Energy (Petroleum Division) may either be made part of the ministry’s budget or released. Resultantly, the head account will reduce to 35 with an overall saving of Rs32 million per year in the HR budget.
It is pertinent to mention that the ECC considered the summary of ministry of energy (Petroleum Division) regarding the continuation of funding facilities to ISGS in its meeting held on December 12, 2019 and took decision which include that ‘the Economic Coordination Committee (ECC) of the cabinet considered the summary dated December 10, 2019, submitted by Petroleum Division regarding ‘continuation of funding facilities’ and formed a two-member committee comprising special assistant to Prime Minister on Petroleum (convener) and secretary finance division to evolve a viable plan for rationalization of operating or administrative expenses of Inter-State Gas System Private Limited within 60 days. The committee will also outline the future business plan and debt repayment strategy of the company. A report thereof is submitted to the ECC for consideration.’ As directed by the ECC, the committee has undertaken a detailed analysis of the company’s mandate, existing projects assigned by the government to the company, the status of each project and the operating or administrative expenditure which can be rationalized on account of HR, establishment, project cost, etc. The summary also mentions that ISGS has currently been tasked to manage, amongst others Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, Iran-Pakistan gas pipeline project (IP), North-South Gas Pipeline Project (NSGP), Offshore Gas Pipeline Project and the strategic underground gas storage.
At present, TAPI gas pipeline project and the North-South Gas pipeline projects are the active projects being pursued by ISGS and can move into the implementation phase during the year 2020. The Turkmenistan minister in his recent communiqué has accepted Pakistan’s desire for the TAPI gas price review and presented project implementation schedule leading to gas flow by end of 2023-24. The Turkmen portion of the gas pipeline till the Afghan border has already been completed, while work on the Afghan segment is continuing as the groundbreaking ceremony was held in February 2018. The groundbreaking ceremony for the Pakistan segment of the gas pipeline can be held soon after the finalization of the Host Government Agreement and gas price review with Turkmenistan.
Similarly, the Russian Energy Minister in his latest letter dated December 26, 2019 proposed a sanctioned free structure or the implementation of the North-South Gas pipeline project. As a result, it is expected that ISGS will be able to conclude commercial agreements with the Russian side within the half of the current year 2020 followed by the implementation of the project within next 2 years (2021-22).
