Massive Corruption by PIA management unveiled…
Pakistan International Airlines (PIA) has been on the decline with massive corruption in fleet induction, procurement of essential spares, denting its balance sheet, etc.
Some unusual transactions came forward after the 10 year special audit report came public.
The book of account (year 2008 – 2009) unveiled some payments made by the management of Pakistan International Airlines Corporation (PIAC). After some further investigation, it was found out that these payments amounting to GPB 307,901 (PKR 38 Million) were made without the board’s approval.
In the first series of payments, the payments were made to M/S Clyde & Co, London and case details from or any reconciliation was not made to available for the review.
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The accumulative amount of these payments was around PKR 22.9 million. Case details were asked to be presented for a review or reconciliation. However, documents never were received. Later it was found out that Ex-Managing Director (MD) PIA, Muhammad Aijaz Haroon, pocketed around GBP 124,351 from the total.
In the second series of payments, the same reference of litigation was proposed and a minute was initiated by the then General Manager (GM) Suhail Mahmood on August 13, 2013. He got funds approved of a total of USD 200,000 which were to be paid to M/S IH Solicitors for providing professional services in the settlement of agreement between PIA and Rolls Royce.
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However, according to the audit report M/S IH Solicitors was engaged in marriage bureau business.
In one day, the Minute Sheet was prepared and signed by the following:
- Maqsood Ahmed (Director Engineering)
- Hanif Phatan (Director HRA&C)
- Arif Majeed (Chief Financial Officer)
- Aizaz Haroon (Managing Director)
At evening, the payment authority was sent to Finance Manager, London to released the funds to M/s IH Solicitors which was done the same day. This has resulted in misappropriation of Corporations Funds amounting to GBP 307, 901 (PKR 38.4 million) causing a loss for the corporation.
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Infested with unions and associations supported by political parties and governments in power, the national carrier is bereaved of its past glory. With a fleet size of just 32, it has one of the highest ratios of employees per seat.
Despite having a relatively small fleet its management is top heavy, drawing fat salaries and enjoying all kinds of perks and privileges.
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