PESHAWAR: The chairman and a member of the Khyber Pakhtunkhwa Oil and Gas Company Limited’s board of directors have resigned from their respective positions amid a simmering row between the company’s two senior most executives over the alleged irregularities.

Sources told Dawn that the provincial government-owned oil and gas holding company waded into controversy earlier this summer when the company’s chief financial officer (CFO), Javed Ghafoor, second senior most staff member of the entity’s hierarchy, wrote an email to the board’ chairman, Tariq Iqbal Khan, and levelled serious allegations of misconduct against chief executive officer (CEO) Mohammad Raziuddin.

Sources told Dawn that a meeting of the company’s board of directors took place on August 1, where Mr Ghafoor presented before them a seven pages long denouncement of the management’s administrative, technical, human resources and other practices.

The board formed a four members committee headed by PTI Senator Nauman Wazir.

Development comes amid corruption charges by one top KPOGCL executive against another

A source requesting anonymity said the committee probing the matter had listened to both the CEO and CFO and would also look into documents to check claims both sides were making.

Allegations similar to those of Mr Ghafoor were levelled by the company’s general manager (exploration), Nazirul Haq, who was fired in Dec last year.

Mr Nazir wrote an eight pages long memo to the energy and power secretary accusing the management of inviting exploration and production companies for investment in Nowshera block, which was entirely metamorphic zone and its oil and gas contents were completely burnt.

Mr Ghafoor memo alleges that company’s failed to produce even a single barrel of oil or gas in KP so far.

“The KPOGCL has failed to produce even a single barrel of oil or gas in its last four of its operation,” he noted, adding that the company failed to start a single exploration effort as operator despite spending a Rs500 million initial equity funding from the KP government.

Mr Ghafoor also accused the company’s head of bluffing the provincial government, board, investors and general public with fake presentations claiming escalated production and discoveries made by other companies as its achievement, when this company had no role in those discoveries.

He said that company’s website lists seven blocks including Nowshera, Khushal, Dera Ismail Khan west and east, Miran, Peshawar, Mardan and Charsadda listed marketing. However, he pointed out that the company owned not a single block and even Director General Petroleum Concessions DG (PC) does not even recognise the existence of any such block except Lakki which they also intend to award through competitive bidding, if ever done.

“No exploration license has been issued for any block,” he noted.

It noted that the company has issued tenders and received bids seismic contracts for over Rs700 in the Lakki block, while Rs20 million was spent on preparatory activities and software’ without any exploration license.

It said the company was also planning to acquiring 12.5 per cent in Bartei block, which, where OGDCL after started drilling in May 2017 has failed to make petroleum discovery in first two sheets.

“I suggested that we obtain fresh BOD approval before CEO signs any assignment agreement as planned shortly as there is an immediate payment of Rs350-Rs400 million or 1/3 of company’s equity,” he said.

Mr Ghafoor in his submission to the board termed the company’s HR practices criminal, illegal and corrupt. He said that company’s employed 460 people and over 80 per cent were daily wagers.

It noted that CEO has proposed capital expenditure budget of Rs. 130 and main portion it would go to purchase of 19 including seven Toyota Vigo vehicles costing Rs. 65 million and software worth Rs. 60 million, while the company owns at 35 vehicles currently.

The document went on to note serious allegations in the procurement, software purchase, foreign tours, hiring of consultants, internal audit, CEO’s re-appointment and other matters.

CFO Ghafoor when approached for comments refused to discuss the matter citing ongoing inquiry.

Secretary of the energy and power department Mohammad Naeem Khan confirmed the resignation of board chairman Tariq Iqbal Khan.

“The chairman has resigned due to health and personal problems and hails from Karachi and could not afford it anymore,” he said.

However, the secretary didn’t confirm the resignation of technical committee’s chairman Khurshid Anwar.

However, another source claimed that Mr Anwar has also resigned.

Mr Raziuddin in his emailed response to Dawn’s written questions refuted all allegations and said their efforts have increased province crude oil, natural gas and LPG production by 77pc, 34pc and 5,400pc from 2013 to 2017 respectively.

He said in 2014, they pursued exploration licences for several blocks but the DG (PC) had turned a blind eye to their requests and that it would be unfair to point fingers at the company for ensuring compliance with the stated procedure set by the centre.

About the HR practices, the email stated that the company has hired best the province had to offer through a competitive process. “There are numerous such cases where current employees of KPOGCL have resigned from high paying jobs in developed nations and joined the company,” it said.

Mr Raziuddin said seismic crews working in the province went up from two in 2013 to six in 2017 and drilling rigs from three to seven during the same period. He said that they had provided the best security to investors without any major incident.

He also rubbished the charges of irregularities in procurements, CEO’s re-appointment, software purchases and foreign tours.

About the re-appointment of the CEO, Mr Raziuddin said the CEO’s re-appointment was based on his past experience in the capacity after much scrutiny the BOD decided to his reappointment.

About the foreign tour, he said the recent three foreign business development meetings have secured commitments from investors exceeding Rs45 Billion and that software purchase was necessary for company operations.

Published in Dawn, October 19th, 2017