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Petrobangla cos' autonomy trampled in 10-day span

Boards reshuffled unilaterally, people with conflict of interest inserted

SHARIER KHAN
Less than 10 days of a government decision on respecting autonomy and financial freedom of all nine companies of Petrobangla-- the energy ministry violated the rights of these companies and their parent organisation.
The ministry unilaterally shuffled the boards of three of these companies last week while it shuffled the boards of six remaining companies back in February. However, there is no legal basis of this act, sources said.
Till recent times, the boards of these companies were predominately formed with Petrobangla's board members, respective company managing directors and some high officials of the energy ministry.
On April 6, the cabinet noted that
although these nine companies legally enjoy autonomy and financial freedom-- their activities have been interfered with and as a result, they were not performing properly. The cabinet decided that from now on Petrobangla and the energy ministry would ensure their autonomy and financial freedom.
In this restructuring, the ministry brought in a BUET teacher and two
senior assistant secretaries and appointed them as directors in these companies. In addition to that, it appointed as directors two businessmen belonging to private companies working in the same sectors dealt with by two Petrobangla companies "This is unprecedented and ridiculous," commented a source.
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Apparently, this shuffle unveils the ongoing tussle between Energy State Minister Mosharraf Hossain and Petrobangla chairman as well as some other Petrobangla officials, sources said.
Last week, the energy ministry through a notification shuffled the boards of Gas Transmission Company Ltd (GTCL), Titas Gas Transmission and Distribution Company Ltd (TGTDCL), and Rupantarita Prakritik Gas Company Ltd (RPGCL).
But the companies' structures dictate that "Any director may be appointed or removed from the office of the company in general meeting at the option of Petrobangla/government. Any vacancy in the office of directors shall be filled in from the nominees of Petrobangla/government." In other words, Petrobangla is mandated to change this structure only through its annual general meeting (AGM).
In GTCL, that deals with 400 km of gas pipelines and is promised of more pipelines of the country in near future, the ministry placed a 'controversial' Chemical Engineering Department teacher and a businessman of the Summit Group. The BUET teacher who was a member of the national committee for gas utilisation is known
for his die-hard support for promoting pipeline gas export, while Summit Group has won a contract and set up gas pipeline for the GTCL in recent times.
In addition, the ministry removed three key Petrobangla directors from GTCL board.
In the RPGCL, that has become an important organisation with the introduction of CNG transports in recent times, the ministry appointed as a director the owner of Nitol Group --a CNG vehicle manufacturer, importer and distributor. A senior assistant secretary with a few months of experience in this field has also been appointed a director. Another director has been appointed from the transport owners association.
In the country's biggest gas distribution company Titas, the ministry shuffled the board without raising many objections. "But the whole process is questionable," notes a source. Titas, where politically blessed thieves gobble up Tk 200 crore of revenue, is now on the verge of getting divided in three units.
"The boards of the remaining six companies were changed in February, " noted a source. In Bangladesh Gas Field Company, the ministry brought in chief of Hydrocarbon Unit, energy ministry as
the chairman. The Hydrocarbon Unit is a donor-sponsored project which is being over-emphasised by the ministry in recent times.
In the only oil and gas exploration company BAPEX, the ministry brought in a senior assistant secretary as a director. "A senior assistant secretary might be experienced but he is not senior enough to become a director of a company," objected a source.
The other companies also have been reshuffled but without raising much objection of the officials of the concerned companies and Petrobangla.
"Such reshuffling has also violated Petrobangla's authority as given to it under the Petroleum Act, 1974," said a Petrobangla official. Section 8 (1) of the Petroleum Act gives Petrobangla the power to form its own companies, and appoint their Board members.
These companies pump Tk 1500 crore a year into the national exchequer and in practice, the finance ministry takes away all their earnings even though they are entitled to retain at least 10 per cent for their own development. Interference by ministers into these companies has often been responsible for corruption in the sector, sources said.