The apex court has questioned why new recruitments are taking place in Pakistan International Airline Corporation (PIAC) when it is suffering from losses and is under heavy debt of Rs 406 billion. A three-judge bench, headed by Justice Umar Ata Bandial, was hearing the irregularities in the national flag carrier. The PIAC is like a "titanic" which is sinking day by day, the court observed.
Safdar Anjum, a member of SASA, informed the court that he has filed a contempt petition against the appointment of incumbent Chief Executive Officer Air Marshal Arshad Malik as this was not done as per the rules set by the Supreme Court in its order issued last year for the appointment of PIA chief.
Air Marshal Arshad Malik was elected as acting CEO on October 26, 2018 and was appointed as regular CEO w.e.f. April 26, 2019 as per PSC Guidelines 2015.
Justice Ijazul Ahsan, member of the bench, said they are presently dealing with the mega issues in PIA as they want to protect the national asset. "At this stage we are not inclined to take up the contempt petition if the condition of PIA is improving."
The apex court in September 2018 had declared the appointment of PIA CEO Musharraf Rasool Cyan as null and void because it had not been made in accordance with the law.
Justice Umar Atta Bandial said: "The national asset (PIA) needs to be protected. We are not inclined to interfere in the executive function, but it should be in consonance with the apex court order." He noted that appointment of Air Chief Arshad Malik was temporary position. "Public positions should be filled as per the rules."
Bhukhari contended that Air Marshal Arshad has brought positive changes in PIA as revenue has increased, adding that his focus is to restructure the airline. Justice Bandial remarked that the changes should be such to protect and save the national assets.
The counsel told the court that the new chairman PIA wants to submit a reply on the audit report of PIA, saying revenue situation has become better while pilferage has been stopped. The vice-air chief is not getting salary for the work being performed by him in the PIA, Bukhari said.
Justice Muneeb inquired whether his appointment is in consonance with the judgment of the Supreme Court. Bukhari was asked to submit what he has done so far to revive the national carrier.
The Auditor General of Pakistan (AGP) in October last year had submitted a 10-volume report in the apex court , which said that accumulated losses of Pakistan International Airline Corporation (PIAC) up to December 31, 2017 were Rs 360.117 billion, while on December 31, 2008 it was Rs 72.353 billion. The report said that the main cause of accumulated losses is absence of the professional and experienced leadership. None of them had relevant experience in aviation industry. The majority members were serving/retired civil/military bureaucrats, politicians and businessmen.
At the onset of the hearing, Naeem Bukhari told the court that he wants to recuse himself from the case as the new PIA CEO is his friend. He stated that the new chairman has taken up the task to improve the national flag carrier. The incumbent CEO has turned around the PIA for better future prospects and is trying to remove the operational shortcomings, Bukhari said.
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