Auditor General recommends Arshad Malik's removal as PIA CEO

ISLAMABAD: The Pakistan International Airlines (PIA) authorities on Thursday confirmed they received a report from the Auditor General of Pakistan (AGP) that recommended the immediate removal of Air Marshal Arshad Malik as the airline’s chief executive officer.

In his report, the AGP stated that Malik’s appointment as the national flag bearer's CEO was illegal. He called on the airline to remove Malik from the post and recover all allowances, remuneration that were being given to him. The report stated that the PIA CEO had received around Rs3 million during the past eight months in allowances and entitlements.

The government’s lawyer said that there was a need to conduct an investigation into Malik's hiring by an impartial institution. He urged the Aviation Division to hold an inquiry to determine who was responsible for appointing Malik to the chief executive’s post. 

The report said that the CEO’s appointment was based on "clear favoritism, malafide and out-of-procedure process" which was held irregular. The AGP said that Malik was appointed CEO of the national flag carrier, which was a public service company, when he was a serving Armed Forces Officer. 

"At present he is holding two positions i.e. Air Marshal in PAF and Chief Executive Officer in PIACL; whereas, if properly selected he would have resigned from PAF and joined as CEO of PIACL," read the report. 

SHC stops PIA CEO from performing duties

Last year, the Sindh High Court (SHC) stopped Malik from performing his duties as the PIA's CEO after a petition filed by a member of the  Senior Staff Association (SASA) challenged his educational qualification and credentials for the CEO post. 

A graduate of the National Defence University (NDU) and qualified in Air Command and Staff Course from the US, Malik had served as the vice chief of the air staff before joining the PIA.

He also served more than 40 years in the Pakistan Air Force (PAF) before being appointed the airline's chairperson on October 11, 2018, by the federal government, and, later, on April 2, 2019, as its CEO.

Malik had moved the Supreme Court of Pakistan against the SHC's verdict. However, the apex court dismissed his petition with the chief justice saying that the court would not allow anyone to "play with PIA’s fortune".