Regional LNG: Chong Wa Dae, union at loggerheads over KOGAS president: Report
Thursday, August 4 2005 - 02:45 AM WIB
It is not likely someone will step up to lead the world's single-largest buyer of liquefied natural gas (LNG) with Chong Wa Dae and its KOGAS union at loggerheads over who should be the next CEO, The Korea Times reported Wednesday.
The listed company has been searching for a presidential candidate since its board of directors sacked former head Oh Kang-hyun at the general shareholders' meeting held on March 31, citing misconduct.
``As Chong Wa Dae last week rejected all of five candidates suggested by the CEO recommendation committee, the company's top post is likely to be vacant for the next few months, a KOGAS official said.
It was the second time for the government, the biggest shareholder of KOGAS, to discard the entire candidates recommended by the KOGAS committee.
The combined shareholdings that government agencies, including the Korea Electric Power Corp., secure in KOGAS reaches 61 percent.
Chong Wa Dae said it couldn't find a qualified candidate for the post, but the KOGAS union raised a question over the government's intention.
``The five candidates all have enough work experience and proven management skills," a KOGAS union member said.
``We not sure what kinds of qualifications the government has in mind for the job of running the energy firm," the official added.
The candidates allegedly included executives from private energy companies and incumbent presidents of energy-related public organizations like the Korea Energy Management Corp.
As to one of the key reasons for a delay in selecting the new KOGAS CEO, the union member raised a question of the intervention by the Ministry of Commerce, Industry and Energy (MOCIE).
KOGAS is under the ministry and traditionally, MOCIE officials used to take the helm of the gas company.
Back in March, the union also pointed to the ministry intervention behind the unexpected dismissal of former KOGAS president Oh.
It was the first time for a state-run corporation to unseat an incumbent president.
Back then, rumors were flooded surrounding reasons of the board's unexpected move.
The three reasons the KOGAS board gave for ousting Oh include playing golf during weekdays, breaking the government-proposed principle in work shift management and giving leniency to the union in its protests against the government.
However, the union demanded the board sack Oh as he showed opposition to government polices like the privatization of KOGAS.
The deposed president took legal action against the board decision in May.
Oh achieved high scores in terms of business performance. Under Oh's leadership, the nation's natural gas monopoly reported an outstanding performance, including a record high 32.31 billion won in net profits in 2004, a 12.1 percent increase from the same period in 2003, with sales reaching 9.11 trillion won.
``It is critical for the government to get a grip on the appointment of the top manager of state-run companies. We just hope the government will find the right person for the top post as soon as possible to minimize the effect of the management vacancy,"the KOGAS official said. (*)