Early credential checks for PSU chiefs proposed

NEW DELHI: The government plans to verify credentials of shortlisted candidates for top positions in state-run enterprises before they are called for an interview to avoid a repeat of the bungle that has stalled the appointment of a chairman for Oil and Natural Gas Corporation ( ONGC).

Government headhunter, the Public Enterprises Selection Board, had named ONGC's director (offshore) Sudhir Vasudeva as the company's chairman in October 2010.


But his appointment was put on hold after the Chief Vigilance Commissioner received a letter, purported to have been written by Rajya Sabha member Tapan Sen, leveling corruption charges against him. It later transpired that the letter was forged.


"The ministry of heavy industries is planning to revamp the existing selection process which is cumbersome," an official at the ministry said on condition of anonymity. The ministry of heavy industr ies manages public sector units.


A parliamentary committee on public undertakings had recently expressed concern over the delay in appointment of chairmen and directors of state-run companies, such as ONGC and Indian Oil Corporation ( IOC). The panel ensures efficient functioning of state-run companies.


"Vested interests misuse vigilance inquiries to stall appointment of selected candidates," a member of the committee, who did not wish to be named, said. The committee is concerned about delays in filling top positions in ONGC and IOC due to systemic failure, the member added.

ONGC is functioning without a full-time chairman and two executive board members since last month, while the country's largest fuel retailer, IOC, is being run by make-shift chief executives since its full-tine CEO retired about a year ago.


In case of ONGC, Sen had written to the government and CVC saying the letter in his name was forged, "but the top investigative agency chose to ignore it", a cabinet minister said requesting anonymity.


A senior oil ministry official said "it was unfortunate that CVC took cognisance of forged letters, violating the guideline not to entertain complaints against any aspirant six months before the appointment."

The Standing Conference of Public Enterprises (Scope), the apex body of state-run firms, has termed as "vital" the timely appointment of chief executives. Its director general and former chairman-cum-managing director of Gail India, U D Choubey, said PSUs should have a succession plan.


"A caretaker chairman is always uncertain about his future so he can't have the same vision as a (full-term) chairman would have," he said.

Choubey said complaints against candidates just before appointments were common."The appointment process should be started early and the appointment of incoming chairman should be announced before the post gets vacant, as in the case of Gail India, where appointment of the new CMD was announced two months before I retired. The transition was smooth," he said.

The ministry of heavy industries is in favour of curtailing the role of administrative ministries in top appointments in PSUs. It has proposed that the Public Enterprises Selection Board should be given more autonomy in the selection of chairmen and board members of state-run firms.