ISLAMABAD: Contrary to conventions, the Ministry of Industries and Production has removed Pakistan Steel Mills (PSM) chairman and held the board meeting against the proscribed rules.

An official of the production ministry said the notification to withdraw Engineer M. A. Jabbar from his board membership was issued with formal approval of the Cabinet Division.

He alleged that the notification was issued on directives of Adviser to Prime Minister on Commerce and Industries Abdul Razak Dawood. However, Mr Dawood refused to comment on Dawn’s query over the removal procedure used to sack Mr Jabbar.

The Public Sector Companies (Corporate Governance) Rules, 2013 have provided a set of rules and regulations governing removal of director from any given board. Under the law, the director must be issued notices prior to his removal; however in this case, the ministry official cited the clause of ‘making public statements without authorisation by the board’ as the justification for Mr Jabbar’ removal.

On the other hand, talking to Dawn, Mr Jabbar said he had given statements to the Senate’s Standing Committee on Industries and Production headed by Senator Ahmed Khan during their visit to the PSM.

“If I made false statements, that too is a crime under the law, and telling the truth is not liked by the adviser; this is confusing.” Eng Jabbar lamented.

Incidentally, Section 4(2)b of the Public Sector Companies (Corporate Governance) Rules, 2013 also highlight that board meeting should be conducted by the chairman who will be responsible to set the meeting agenda.

However, PSM board meeting, on Thursday, was called by company secretary on the directives of Acting Chief Executive Naeem Jan and senior joint secretary for the industries and production ministry.

The meeting subsequently elected Mr Muhammad Razi-ud-Din as the PSM board chairman.

Mr Razi had joined the board as the chief executive Oil and Gas Company, Khyber Pakhtunkhwa but was sacked by the KP government in November last year.

Mr Jabbar, who was not called in the meeting, contested that legal procedures were not followed regarding his removal but none of the officials or Mr Dawood responded to Dawn queries.

Published in Dawn, March 29th, 2019