PSO board bound by code to prevent corruption

ISLAMABAD: In line with the State-Owned Enterprises (SOE) Act, a strict code of conduct has been enforced to prevent the Board of Management (BoM) of Pakistan State Oil (PSO) from engaging in corrupt practices, accepting gifts, and leaking sensitive information, a senior official from the Petroleum Division told The News.

“All bureaucrats serving on the Board of Management have signed the code of conduct, and any member found in violation will face legal proceedings either by the FIA or NAB,” the official said.

According to official documents available to The News, the purpose of this Code of Conduct is to establish standards of ethical behaviour and professional integrity for the Board of Management of Pakistan State Oil Company Limited. It aims to promote transparency, accountability, and good governance, ensuring that board members act in the best interest of the company and its stakeholders.

Board members are required to reject all forms of corruption—whether direct, indirect, public, or private. They are prohibited from engaging in bribery, kickbacks, payoffs, or any other corrupt business practices.

No board member is permitted to accept funds, loans, favours, or other assets (including preferential treatment) to obtain business from the company or that could influence their decisions.

Additionally, board members and their families may not accept gifts from individuals or entities dealing with the company if the gift: (a) is illegal or results in a violation of law, (b) is given in exchange for a favour, (c) is intended to influence the Board member’s actions, or (d) could create the appearance of a conflict of interest.

The scope of the conduct, as outlined in the document, applies to all members of the Board of Management. It is intended to guide their conduct in fulfilling their duties and responsibilities as stipulated by the Marketing of Petroleum Products (Federal Control) Act, 1974, the SOE (Governance and Operations) Act, 2023, and other relevant laws.

Board members must act honestly and fairly, upholding high ethical standards in all dealings with the company’s stakeholders. They are required to avoid situations where their interests may conflict with the company’s interests. The code also mandates that board members maintain the confidentiality of non-public information obtained through their roles and prohibits the disclosure of confidential information, including commercial secrets, financial data, or strategic plans, unless authorised by the board or required by law.

No board member may disclose confidential information, either during or after their tenure, without board approval or as required by law. Furthermore, board members are prohibited from using confidential information for personal gain or the benefit of their immediate family members or external parties.

If a board member has insider information about the company or its subsidiaries, they are prohibited from executing, recommending, or influencing transactions in the company’s securities, either personally, through family members, or on behalf of others. Board members are also barred from influencing others to trade in the company’s securities based on insider information. Board members must comply with all applicable laws, rules, and regulations, including but not limited to the Marketing of Petroleum Products (Federal Control) Act, 1974, the SOE (Governance and Operations) Act, 2023, the Companies Act 2017, the Listing Regulations of the Pakistan Stock Exchange, the Public Sector Companies (Corporate Governance) Rules 2013 (where applicable), the Listed Companies (Code of Corporate Governance) Regulations 2019, and the Securities Act 2015.