ISLAMABAD - National Accountability Bureau has informed the Supreme Court that the appointment of Sheikh Imran Ul Haque as Managing Director of Pakistan State Oil (PSO) was illegal and based on favouritism and friendship.

Haque is a known friend of Shahid Khaqan Abbasi and Chief Justice of Pakistan Mian Saqib Nisar during the hearing had hinted at their personal relation without naming Abbasi.

Haque, who was drawing Rs3.7 million monthly salary along with other perks and privileges, was appointed as MD by deposed prime minister Nawaz Sharif when Shahid Khaqan Abbasi was Federal Minister for Ministry of Petroleum and Natural Resources (MPNR).

NAB further informed the Supreme Court that the competent authority of accountability watchdog is considering conversion of inquiry into investigation.

The accused persons in the case are former prime minister Shahid Khaqan Abbasi in his capacity as ex-federal minister for MPNR, ex-MD PSO Sheikh Imranul Haque and DMD PSO Yaqoob Suttar.

The matter of Haque’s appointment was referred to NAB by Supreme Court on an application pertaining to dubious appointment through tailor-made ads of MDs, CEOs and Chairman and senior officers in oil and gas sector causing loss of Rs500 billion annually to the national exchequer.

According to the NAB, the gist of the allegation is misuse of public money by appointing officers in PSO having exorbitant salaries and other perks and privileges of Rs1.5 million per month or more.

NAB in its report to top court stated that the evidences showed that the appointment of Haque was illegal and was not made in a transparent manner and was result of favouritism and personal friendship through a tailor-made advertisement.

It is further revealed that Haque did not have any experience in the field of Oil Marketing and he was appointed without any assessment and competition with the other shortlisted candidates.

The evidence and record further revealed that there were blatant violation of law, rules and general principle of honesty, transparency and fairness for appointment of MD and CEOs in a public sector enterprise.

NAB further stated that there is evidence that Haque had a conflict of interest with PSO and LNG agreement with his ex-employer Engro Corporation.

Moreover, the NAB’s inquiry report regarding appointment of MD revealed that Haque further misused his authority as MD by promoting Suttar as DMD.

Suttar was promoted within the month Haque had taken charge as MD PSO, the report stated, adding that there are number of illegalities and irregularities evident in promotion.

NAB further revealed that the promotion of Suttar also appears to be based on personal friendship and favouritism as Suttar ratified the pay package of Haque just before joining as MD and both of them had been colleagues in Engro Corporation.

The MPNR was kept out of the loop and no internal competitive proves was followed which was a mandatory requirement.

During the course of inquiry in NAB, ex-minister of MPNR Shahid Khaqan Abbasi, ex-secretary MP&NR Arshad Mirza and Joint Secretary of the ministry Syed Toufeeq Shah along with other more than 10 officers were issued call up notices and questionnaires were also given to them.

They replied and attended the NAB officer except Shah, who sent reply of the questionnaire.

The top court had on July 14 ruled on two aspects in the case, firstly the audit of the PSO and secondly the appointments of officers who are drawing monthly salaries of Rs1.5 million or more.

In its order, the top court had observed that MD PSO whose appointment has been made on contract basis has been drawing a salary of Rs3.7 million per month. “This is in addition to the perks and privilege,” it was observed.

“We wish to find out if his appointment has been made fairly, honestly in a transparent manner after fulfilling all legal and procedural formalities or whether his appointment was based upon nepotism, political reasons of personal friendships. This appears to be indiscriminate misuse and unnecessary waste of public money,” the top court in its order had observed.

“Therefore, we direct National Accountability Bureau to inquire into all appointments of officers who are drawing monthly salaries of Rs1.5 million or more,” the top court had ruled. 

During the course of hearing in July, Chief Justice Mian Saqib Nisar heading a two-judge bench had observed, “I (chief justice) am sure something is not coming in the light. You (MD) are drawing Rs3.7 million. You are friend of someone who was part of the previous government.”

“I (MD) am not friend of anyone,” responded MD PSO Imranul Haq. The response of MD PSO had anguished chief justice who remarked, “don’t try to say something which could easily be ascertained, even a president of a bank would not be getting such hefty amount in terms of salary.” 

 MD PSO had said that then Prime Minister Nawaz Sharif had appointed him. Chief justice had asked as to who was minister of concerned ministry at that time. MD PSO had conceded that Shahid Khaqan Abbasi was federal minister at the relevant point of time.

“So stop here, we can probe with the assistance of best agencies,” chief justice had snubbed MD PSO.