No action Taken after Transparency International warns Chairman PIA of irregularities
Two months after Transparency International Pakistan wrote to Chairman Pakistan International Airlines (PIA) about alleged irregularities in the award of the renovation contract of Roosevelt hotel in New York and Scribe hotel in Paris as well as the irregular leasing of the two hotels, no action has been taken by any governmental institution.
The renovation which was approved last year came at a cost of $25 million but Transparency International alleges that there was a violation of Public Procurement Rules 2004.
The letter which has been seen by Baaghitv also raises concerns over the breach of rules in the appointment of Mr Najib Sami who is Managing Director of Pakistan International Airlines Investment Limited. The letter states, “According to Federal Government Policy, retirement age is 60 years and in PIA also 60 years is retirement age except for Pilots. But in gross violation of Federal Government retirement age limit policy, PIACL & PIA Boards have many times amended retirement age limit of MD for retaining Najib Sami, from 60 to 63, and then from 63 to 65, and then from 65 to 70, and even now he is still allowed to work as MD PIAIL.” The watchdog raised concerns over how the rules were continuously amended to retain Mr Najib Sami as MD PIAIL.
Transparency International Pakistan has also raised serious concerns over the lack of accounts of PIAIL. The corruption watchdog alleges that Mr Najib Sami has ordered his staff not to make any website of PIAIL to avoid showing their accounts but argues that since PIAIL is a subsidiary of PIA, it is bound by the same rules. No accounts for PIAIL exist on PIA’s website or elsewhere.
Earlier, a $500 million contract for the leasing of Roosevelt Hotel in New York and Scribe Hotel in Paris was signed by PIAIL but no details have been provided regarding this multi-million dollar deal. The letter states that the leasing of these hotels without open bidding is in violation PPRA Rules 2004, which under PPRA Regulation Rule No. 50, is misprocurement.
According to Transparency International Pakistan, “The Audit of Accounts of Pakistan International Airlines Investment Limited, which owns Roosevelt Hotel NY and Scribe Hotel Paris, were never performed by the Auditor General of Pakistan, which is mandatory according to Articles 169 and 170 of Constitution. Not only this, even PIA’s internal auditors have not been allowed by Najib Sami to check the books of accounts of PIAIL, and PIA Board behaved as silent spectators.”
Pakistani authorities have been requested to investigate the breach of rules in this matter by Transparency International Pakistan which has also asked the government to conduct a 10 years audit of PIAL on the free rooms given to personal relations of Mr Najib Sami.
“Incase any or all allegations proves to be correct, actions against all officers and beneficiaries shall be taken to get the exchequers money refunded and measures for the proven irregularities as per violation of SECP, PPRA and Federal Govt Laws, shall also be initiated.” The letter reads.
The letter which has been signed by, Justice (R) Ghous Mohammad has been forwarded to the Secretary to the Prime Minister, Chairman Public Accounts Committee, Islamabad, DG NAB – Karachi, DG FIA, Secretary Aviation, and the registrar of the Supreme Court of Pakistan.
