Karachi: In compliance with KSE letter No.KSE/N-6404 dated December 2, 2011, a press release on the subject issued by OGDCL in response to a news item published in the Daily Business Recorder on December 21, 2011 is attached for information of your members please.
Apropos to a news item appearing in the Business Recorder, Pakistan dated December 21, 2011 regarding appointment of Statutory Auditors by OGDCL in violation of PPRA Rules.
Oil and Gas Development Corporation was established under OGDC Ordinance, 1961 and not OGDC Ordinance 1966 as quoted by Transparency International Pakistan.
Later with the amendment in OGDC Ordinance, 1961, the Corporation was converted into an unlisted Company in 1997 under the Companies Ordinance, 1984.
In 2003, 5% shares of OGDCL were sold to the general public and the Company was listed on all the three Stock Exchanges of Pakistan. In December, 2006, shares of the Company were further issued to foreign investors in the form of Global Depository Shares and listed on the London Stock Exchange. OGDCL therefore has to comply with the provisions of Companies Ordinance, 1984.
As a public sector Company, OGDCL is complying with the provisions of Public Procurement Regulatory Authority rules and regulations for procurement of goods and services. As regards to appointment of Statutory Auditors, the procedure is fully laid down in Sections 252 and 253 of Companies Ordinance, 1984. In response to a letter dated November 12, 2011 from Transparency International Pakistan, the Securities and Exchange Commission of Pakistan has also confirmed that the appointment of Statutory Auditors should be made in line with the provisions of Companies Ordinance, 1984.
OGDCL is therefore not in violation of any rule regarding appointment of Statutory Auditors.
For more information, contact:
Eram Ali Aziz
Oil and Gas Development Company Limited
Jinnah Avenue, Blue Area,
Ph: (92-51) 2623072, 920023553, 920023508
Fax: (92-51) 9209762