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This is with reference to reports about the visit to the PIA head office by head of Transparency International, chapter of Pakistan. Transparency in procurement deals can only be ensured if the procedures laid down are followed in letter and spirit and a complete audit be done of all transactions in the last financial year.
Mere statements will never achieve any results, which is evident from the national airlines balance sheet and the mind-boggling losses and liabilities to the tune of over Rs 160 billion. The matter of trolley bags procurement for Hajis in the recently concluded Hajj operation is a classic example of the prevalent practices and gross irregularities.
These inferior bags were bought from China through a company registered in the Gulf and UK, owned by Pakistanis and without inviting any quotations or placing any advertisements. Last year, the airline MD went to Paris Air Show, where he, without any prior approval, from the Board of Directors or the Ministry of Defence or Finance, signed a letter of intent to buy 27 new aircrafts, worth $2 billion.
There are also reports that a company with offices in the Gulf has been engaged in procurement of Line Maintenance Units for the PIA fleet at exorbitant rates, instead of procurement from regular channels, which reminds us of similar irregularities conducted during the tenure of Chaudhry Ahmed Saeed and former DMD AVM Niaz.
Issues of transparency also afflict foreign postings of controversial individuals to UK, USA, Canada, Germany, Gulf and Saudi Arabia in total violation of merit and seniority. Similar is the situation with promotions, appointments and fresh unwanted recruitment.
When cronyism and politics dominate an organisation already in a loss, lack of transparency, ad-hocism and corruption is its fate. Can anybody in PIA justify the economics of making a Flight Training Academy in Nawabshah, when the airline has a surplus of pilots and is even sending them to private airlines like Ryan Air on deputation.
The airline management is well aware that the utilisation of its pilots is well below 40 hours per month, while it has recently raised their guaranteed payment from 50 hours to 70 hours. It is these irregularities, which have gone on unchecked, that have led the airline to the brink of economic collapse. Business plans submitted fail to achieve targets.
Yet every year the same cycle is repeated, while salary raises, pilferages and over burdening the salary bill of an overstaffed and top-heavy airline, with declining revenues and shrinking schedules, have become too heavy a burden for the state exchequer.

Copyright Business Recorder, 2010

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