CEOs’ appointments made on merit, Khaqan tells NAB

ISLAMABAD: Former premier Shahid Khaqan Abbasi has told the country’s top corruption watchdog body that he and his ministry made appointments of CEOs on merit in public limited companies.

Abbasi was responding to NAB’s questionnaire which sought information under Section 19 of NAO, 1999 in an inquiry against officers/officials of government who according to the bureau were illegally appointed by his ministry in public companies and provision of funds in billions of rupees in violation of relevant rules.

In response to the first question pertaining to alleged illegal appointment of Adnan Gilani at the top post in Pakistan LNG Limited, Shahid Khaqan Abbasi said, “My first meeting with Adnan Gilani was in 2015 when he was a team leader of the Prime Minister’s Delivery Unit. I remain unaware of the context of this question as I did not receive a copy of the complaint from NAB.” He told NAB that Gilani had exceptional academic credentials and over 20 years of senior level international experience in finance and energy.

The NAB team claimed that the-then prime minister Nawaz Sharif raised serious observations during the appointment of Chief Executive Officer, Pakistan LNG Limited, Adnan Gilani, in 2016. Shahid Khaqan Abbasi told NAB that he “personally discussed the issues in detail with the-then secretary to the prime minister to address the observations made in the Prime Minister’s Office letter dated March 14, 2016; and especially to confirm that the process was not skewed, was transparent and open to all applicants. The Prime Minister’s Office, in its wisdom, vide its letter dated June 2, 2016, desired that the ministry undertake a fresh selection process for appointment of the CEO PLL.” In December 2020, NAB, through its director Saleem Ahmed Khan, asked Abbasi to appear before its investigation team on January 10, 2021. "The inquiry has revealed that you [Abbasi] remained the minister for petroleum and natural resources and prime minister of Pakistan, involved in selection and appointment of Adnan Gilani to Pakistan LNG Limited as chief operating officer and subsequently as chief executive officer during 2013-2018 period, which related to commission of the said [NAB Ordinance] offence," read the notice.

NAB chairman Justice (retd) Javed Iqbal gave go ahead for an inquiry against alleged illegal appointments of CEOs in public limited companies in 2018. Later on in July last year, NAB filed a reference and a supplementary reference against Abbasi, his son Abdullah Abbasi, Miftah Ismail, ex-chairman PQA Agha Jan Akhtar, ex-chairman OGRA Saeed Khan, ex-chairperson of OGRA Uzma Adil Khan, ex-MD PSO Shahid Islam, ex-MD PSO Imran-ul-Haq and others.

Abbasi further told NAB that Azam Sufi, CEO, Pakistan LNG Terminals Limited, was removed from his position by the PLTL Board of Directors due to non-performance in exercise of the powers vested with the BOD under the SECP regulations. A panel of three candidates was considered eligible and selected by the PLL BOD through an extensive short-listing process from 131 applications received for the CEO PLL position; the Ministry of Petroleum and Natural Resources had no reason to question this panel or consider it to be a deficient panel, Abbasi further informed the NAB. The selection process for the CEO, Pakistan LNG Limited, is the responsibility, and was handled as required by SECP regulations and there was no deviation from the required procedures, Abbasi informed the NAB. On a question why Gilani was appointed as the CEO a month after the rejection of his nomination on serious observations, Shahid Khaqan Abbasi said, “I am sure that the PLL BOD in its wisdom considered it logical that a candidate who was eligible and shortlisted for the CEO PLL position, and who had also applied for the COO position should be eligible for appointment as the COO PLL.” Gilani has already vehemently rebutted all allegations saying, "I applied for the position of CEO of PLL in response to an open, competitive, international advertisement published by the Ministry of Petroleum as per proper procedure. I absolutely had no role whatsoever in manipulating my appointment and had no affiliation with any decision-maker or competent authority outside of professional interactions. I initially was appointed the COO through a competitive process and later, on applying again and undergoing a rigorous and transparent process, was selected as CEO. Regarding the involvement with US Fintech Company, it was a malicious campaign against me. I cleared this issue with the ministry through a letter dated July 1 wherein an external legal opinion was sought regarding conflict of interest, SECP regulations, SBP regulations, etc."

The Islamabad High Court (IHC), while pursuing the record of Gilani’s appointment, observed, "All aspects demonstrate that petitioner [Adnan Gilani] is victim of fishing expedition and as such w.e.f. Oct 02, 2020 nothing has been achieved in the pending inquiry by NAB [in CEOs appointment matter]. Perusal of record reveals that Gilani was appointed as CEO LNG Company Ltd, hereinafter called as PLL vide notification dated Feb 16, 2018 after an advertisement published by Ministry of Energy (Petroleum Division) under the law in a transparent manner. The very appointment of the petitioner was not declared illegal by any authority nor any illegality was highlighted in this case. Gilani's name has been placed on Exit Control. Neither complaint has ever been scrutinised by the competent authority of the ministry of energy nor by the federal cabinet which is not the case in hand," stated the IHC's order. In his response, a spokesperson for NAB said, "Since the inquiry is ongoing. We [the NAB is] are in the process to having point of view/statement of all concerned in this regard. Therefore, sharing any information at this stage may affect the official proceedings of NAB as per law [in this CEOs appointments case]."