PTV strikes deal without board's nod.

ISLAMABAD -- The management of Pakistan Television Corporation (PTV) entered into a multibillion-rupee agreement with a private firm for the digital streaming of content without seeking approval of its board in violation of corporate governance rules of public sector companies.

Details showed that PTV signed the deal in October last year with Z2C Pakistan Private Limited. Sources told The Express Tribune that the board questioned the management in its last meeting about bypassing it in reaching the deal that carried financial implications for the entity.

It may also expose the deal to legal scrutiny, although the party had been shortlisted after following the competitive process.

The one-year agreement can be renewed after expiry with mutual consultation and then can automatically be renewed yearly for three successive years. The management has bound the state-run entity into a potentially five-year deal without final nod of the board, showed the details.

The agreement has become effective for over-the-top (OTT) media service but the service has not yet been officially launched, according to the sources. The OTT agreement was signed for the provision of video-on-demand and streaming of current and achieved content.

When contacted, the PTV management defended the decision of avoiding the board scrutiny of the deal. 'The agreement was made after open prequalification and financial bidding process, pre-audit and legal vetting of the case by PTV audit and legal department,' said PTV Managing Director Sohail Ali Khan.

He added that a high-level committee of PTV directors and senior officials had been formed to oversee and complete the whole process.

'The tendering was done as per PPRA rules, so no exemption and approval were required from BOD,' said the MD. He added that a complete digital strategy along with concepts including digitisation of archival content and its monetisation on digital platforms had already been discussed and endorsed by the PTV board.

But bypassing the board in such a big financial matter was a violation of the Public Sector Companies (Corporate Governance) Rules 2013.

The rules make it mandatory for all public sector companies to place key information before their boards for discussion and approval.

Rule 7 states 'significant issues shall be placed before the Board for its information and consideration, to formalise and strengthen the corporate decision-making process.'

Rule 7 (d)...