LAHORE: The board of directors of Sui Northern Gas Pipelines Ltd (SNGPL) on Saturday removed Managing Director Ali J. Hamdani from the post with a direction to avoid exercising his authority to run the country’s largest state-owned gas utility company.

The board has also appointed Amir Tufail as the new managing director on an officiating charge basis, Dawn has learnt.

Official sources said the removal was made on the allegations of irregularities/corruption.

Talking to Dawn Mr Hamdani declared the entire procedure adopted to remove him from the office as illegal, baseless and unethical under corporate governance rules and announced to challenge it in a court of law.

“Under the law, the prime minister alone (and not the board) is the authority to appoint or remove the company chief. But, in this case, the board, which is already controversial, took an illegal decision,” he claimed.

The company board took this decision in its 600th meeting held on Saturday through a resolution, according to a notification issued by the gas utility.

In the notification, the board has ceased Mr Hamdani to exercise the power of attorney as managing director with immediate effect and delegated the same to Deputy Managing Director (Services) Mr Tufail.

The notification directs all employees of the SNGPL to note the change and act accordingly in letter and spirit.

“It is also directed to ensure smooth operations and continuity of the business through the respective head of departments/senior general managers,” said the notification issued by Mr Tufail.

Sources say that Mr Hamdani was removed for irregularities/corruption committed allegedly on his part in a project.

Moreover, Mr Hamdani also failed allegedly to come up to the expectations of the federal government on controlling/reducing the UFG (unaccounted for gas) losses, they claimed.

However, Mr Hamdani has rejected all the allegations, claiming that he was the man who reduced UFG losses from 8 to 7.5 or even below during his tenure started in January 2021.

He said he had made drastic reshuffles of the officers/officials recently that probably created hurdles in the way to steer him the company in the right direction.

“The project about which he is being said to commit irregularities or corruption is yet to be launched, as it is still passing through the bidding process,” Mr Hamdani claimed, adding that the government should professionally treat this case as he is one of the professionals who came to Pakistan from abroad with a passion to serve the country.

Published in Dawn, February 19th, 2023