BoD’s decision to sack compels MD Inter-State

ISLAMABAD: In a major development, the Board of Directors (BoD) of Inter-State Gas System (ISGS) here on Tuesday in its stormy session decided with consensus to dismiss Managing Director Mobin Saulat for corrupt practices in accordance with a NAB letter and for becoming an approver (partner in crime) against former Prime Minister of Pakistan Shahid Khaqan Abbasi for awarding contract of LNG terminal to the Engro Elengy Terminal Private Limited (EETPL), one of the directors of Inter-State Gas System confirmed to The News.

"The decision was taken keeping in view the 14-page independent legal opinion of law firm RMA&Co. According to the copy of the legal opinion available with The News, the RMA &Co. in their opinion said Saulat’s continued association as MD will be detrimental to the interests of Inter State Gas Company as per statements of Mobin Saulat given as approver to NAB. It said Saulat does not appear to have conducted the duties assigned to him with complete probity, integrity, the courage to dissent and due diligence. The legal firm also mentions that Mobin Saulat admitted to connivance in what in his opinion, were transgressions of law amounting to corrupt practices.

"So it cannot, therefore, be said that Mobin Saulat continues to possess a reputation for disciplined and ongoing commitment to high ethical standards as required by the public sector companies (appointment of chief executive) guidelines, 2015." The legal firm also said: “Apart from the powers to remove the chief executive that is available with the board of directors in terms of Section 190(1) of the Companies Act 2017 in which the government holds more than 75 percent of the voting rights, Section 190(2) also empowers the government to remove the chief executive."

Saulat had earlier claimed managing to get a legal opinion in his favour through the lawyer of the company which the BoD rejected and decided to have an independent opinion from RMA&Co.

The News broke the story on January 6, 2020 with the headline ‘ISGS MD on way to expulsion as approver can’t continue as MD’, which turned out to be true on

Tuesday.

Since the appearance of the story in The News, the biggest question before the newly-constituted board of directors headed by Ibne Hasan was if a man who becomes an approver, factually meaning that he admitted to being partner to a crime, could continue to hold the public office.

So the board asked from legal firm RMA &Co. to give independent legal opinion on two issues i) What is the legal status of an approver or witness under the National Accountability Ordinance, 1999?; ii) And whether the Managing Director of Inter State Gas Systems who is an approver in a NAB reference, can continue to hold public office in the capacity of Chief Executive Officer/Managing Director of ISGS? The Board after the meeting informed the managing director about his dismissal based on the independent opinion of legal firm RMA&Co, saying: “The board cannot go with you (Mr MD) to run the company as you have been involved in corrupt practices as per NAB letter, and after becoming an approver, you have admitted that you are partner in crime.”

Following this, Mobin Saulat surrendered and offered to resign which was accepted by the Board. By resigning, he managed to avoid dismissal and will now qualify for two-month salaries.

Saira Najeeb, a director on behalf of government in the board who is also the Joint Secretary Development in Petroleum Division, has been given the charge of acting Managing Director of ISGS for three months.

When contacted, Spokesman of Petroleum Division Joint Secretary Qazi Sajid confirmed saying that the board had dismissed Mobin Saulat who has been the Managing Director of ISGS for over one decade for becoming an approver and also for being declared by NAB as corrupt in a letter to the ministry. In addition, Saulat was also facing the ruthless performance audit for what he ‘delivered’ in over 10 years’ as managing director. However, he surrendered and offered to resign which the board members after some discussion allowed.

To a question, he said that the Human Resource committee will soon steer the recruitment process for appointment of a regular managing director of the company.