While it was expected that given the numerous controversies and ambiguities surrounding the management performance of Petrorefinery Kangan, the board of directors of this company would take a stricter approach in the field of oversight and control of the CEO's performance, the latest changes recorded in the management structure of this company indicate an increase in the powers of Seyed Javad Fallahian, CEO of Petrorefinery Kangan; an action that raises serious questions about the board's approach to the company's situation.
According to the latest notice registered in the Companies Registration Office, the composition of the board of directors of Petrorefinery Kangan has undergone changes. According to these changes, Pejman Mohammadi, representing the "Tose'e Naft va Gaz Shayestegan Ahdaf" company, has replaced Hamid Ghaderi on the board. Also, Seyed Javad Fallahian, representing the "Sabajam Kangan Oil and Gas Industrial Complex" company, has retained the positions of CEO, vice-chairman of the board, and board member. Mohammad Moradparsai and Arshia Ansari Sarabi have also been retained in their positions.
Delegation of Board Powers to the Misconducting CEO
The notable point in these changes is the delegation of part of the board's powers to the CEO based on Article 42 of the company's articles of association; a decision that practically increases Fallahian's executive powers.
This increase in powers comes at a time when Seyed Javad Fallahian's record, according to critics, is filled with cases of misconduct, mismanagement, and financial ambiguities, and it was expected that the board of directors, instead of expanding the CEO's powers, would take action to review these ambiguities and deal with potential misconduct by enforcing stricter oversight and limiting his powers. However, the recent decision of the board has strengthened the suspicion that not only is there no will to combat corruption and potential misconduct in this company, but the groundwork for the continuation of this trend has also been laid.
Feydus News Agency had previously published several reports on a series of misconducts and ambiguities attributed to Seyed Javad Fallahian and warned about the management trend in Petrorefinery Kangan. Despite the publication of these reports, so far, not only has no effective action been observed from the board of directors to clarify or respond to these issues, but now with the increase in the CEO's powers, criticisms of the board's performance have entered a new phase.
During his management period at Padjam Company, Fallahian also caused significant damage to this company with a heavy accumulated loss, and one of the instances was the suspicious purchase of 500 tons of oil worth 10 million euros on his order, which the publication of its documents indicated definite corruption centered on Fallahian.
In this case too, Fallahian was never questioned for this strange invoicing where the price of each ton of oil was set several times higher than the real price of 20,000 euros, and instead, with his appointment as CEO of Petrorefinery Kangan, it seems he received a reward for his ongoing corruption.
Some observers believe that the continued support for the CEO, despite the publication of numerous reports about misconduct and financial ambiguities, raises the question of whether the board members are still fulfilling their legal and oversight duties. From the perspective of these critics, the silence and continuous support of the board for Fallahian can create the suspicion that the level of alignment and cooperation of the board members with the current trend is such that no will to perform oversight duties and prevent potential misconduct in the company is seen.
In such circumstances, it is expected that regulatory bodies and major shareholders will intervene in this matter, investigate the reasons for the increase in the CEO's powers, and also address the ambiguities and reports published about the management performance of Petrorefinery Kangan and prevent the continuation of any potential misconduct or mismanagement.
