ISLAMABAD: The federal government’s process of appointing a new Member (Gas) to the Oil and Gas Regulatory Authority (Ogra) has come under scrutiny amid concerns of a potential conflict of interest, senior officials at Petroleum Division told the scribe.
Authorities have shortlisted three candidates for the position. One of the nominees currently serves as Senior General Manager at Sui Northern Gas Pipelines Limited (SNGPL), raising serious questions about the regulator’s independence.
Sources within the regulatory regime have pointed out that this is not the first time such concerns have emerged. A recent appointment to the post of Member (Finance) in Ogra was made from Sui Southern Gas Company (SSGC), another entity directly regulated by Ogra. This trend has sparked criticism about the authority’s impartiality when overseeing the very companies from which its members are being drawn.
In the past, Uzma Adil, then CFO (Chief Financial Officer) of SNGPL, was appointed as Ogra chairperson —though notably, her appointment came one year after her retirement from the utility, in line with the regulatory cooling-off period.
When contacted by The News, Kamran Ali Afzal, Secretary Cabinet Division, stated that the case is still under consideration. He added that any conflict of interest, if it exists, is always taken into account during the selection process.
However, the Ogra Ordinance of 2002 sets out clear statutory guidelines to prevent conflicts of interest in such appointments. The relevant clause reads:
“No person shall be appointed by the federal government as Member if he/she has any direct or indirect financial interest in, or has any connection which might reasonably be viewed as giving rise to a conflict of interest with, any person involved in any regulated activity. No person appointed as Member shall during his term in office have or maintain any direct or indirect financial interest in any person involved in any regulated activity.”
The law also prohibits Members from engaging in any other service, business, or employment during their tenure.
In a letter dated May 20, 2024, former Member (Gas) Mansoor Muzaffar Ali wrote to the Ogra chairman, invoking the conflict of interest clause and urging that no individual currently or recently affiliated with SNGPL or SSGC be appointed without first obtaining parliamentary approval. He warned that such appointments would not only violate the Ogra Ordinance but also undermine the authority’s credibility and independence.
“The selection of Member (Gas) cannot be brought about from any of the two Sui Gas Companies — SNGPL and SSGC — without obtaining the requisite sanction of the Parliament,” Mansoor wrote.
Legal experts have echoed these concerns, warning that any appointment made in breach of the Ordinance could be challenged in court, potentially rendering it null and void.
Ogra plays a pivotal role in regulating and monitoring the country’s gas sector, including pricing, distribution, and performance standards. Ensuring that its members remain free from institutional bias is considered essential to maintain both public trust and regulatory integrity.