Decision on PIA appointments after audit report: SC

ISLAMABAD: The Supreme Court (SC) on Monday sought reply from the management of Pakistan International Airlines (PIA) to its audit report conducted by Auditor General of Pakistan (AGP). It observed that a decision on new appointments will be made after the audit report.

A two-member bench of the apex court headed by Justice Sheikh Azmat Saeed heard a suo moto case relating to privatisation and losses of the Pakistan International Airlines. The court also summoned on the next date of hearing Director General Federal Investigation Agency (FIA), Secretary Civil Aviation Authority as well as officials form National Accountability Bureau (NAB)

Last month in its report submitted by AGP revealed that due to absence of professional and experienced leadership, the national flag carrier incurred a loss of Rs360 billion by the end of 2017.

As per Audited financial statements of Pakistan International Airlines Corporation (PIAC), the accumulated losses as on December 31, 2008 was Rs72.353 billion which mounted to Rs360.117 billion as on December 31, 2017, says the AGP in its report submitted before the Supreme Court on Tuesday.

On June 30, the Supreme Court had directed the AGP to conduct special audit PIAC for the last ten years (2008-2017) as per approved Terms of Reference (TORs) and furnish a comprehensive report before it.

The court had ruled that the primary objective of the special audit was to ascertain the causes of accumulated losses sustained by PIAC over the period of last ten years

In its findings, the Audit report had observed that the Pakistan International Airlines Corporation has been run like a non-business entity, governed by the non-professional Board of Directors (BODs), managed by CEO lacking industry-specific experience.

It had further observed absence of prudence, due diligence, and best industry practice in policy making, ad-hocism in decision making as well as poor HR, Procurement, marketing contacts, fleet, fuel, inventory and financial management.

The Auditor General of Pakistan had recommended constitution of an efficient and dynamic BoD to turn around the airline, besides appointing Chief Executive and MDs on merit. The AGP had further recommended that unnecessary interference from the government should be stopped besides interference of various staff/officers associations also be stopped and policy of merit-based appointment/transfer/posting should also be stopped as well.

On Wednesday, Justcie Sheikh Azmat Saeed observed that the Auditor General had conducted postmortem of the national flag carrier adding that it will diagnose its disease as well.

Justice Azmat said that the federal government is required to take effective measures for the improvement of the Pakistan International Airlines, adding that the court will not issue any direction in this regard. The court observed that there was no need of making fresh appointments in the Airline and sought list of vacant posts in the national flag carrier.

Meanwhile, the court directed the management of PIA to submit its reply over the audit report besides summoning the FIA DG, Secretary Civil Aviation Authority as well as officials form National Accountability Bureau and adjourned further hearing until November 16.