Expressing its displeasure, a parliamentary panel on Tuesday directed the management of Pakistan International Airlines Corporation (PIA) to discard its policy of giving expensive cars on throwaway prices to its executives. A sub-committee of Public Accounts Committee (PAC) examined the audit reports of Aviation Division for the year 2007-08 which was headed by Sardar Sardar Ashiq Hussain Gopang.
In its observation, audit report states that in PIA head office, a total of 19 vehicles having a book value of Rs 5.163 million were transferred to the employees during the year 2005-06, free of cost which included a new Toyota Corolla car valuing Rs 969,000 within its first year of purchase.
The same transfer of cars were made by the management in pursuance of Car Policy dated October 18, 1993, circulated by Policies and Remuneration Division of PIA which provided transfer of cars to the allottee officers twice during service after completion of life span of cars for 6 years and 4 years, respectively.
However, no previous sanction of the federal government was obtained by the management for making such regulation of generous transfer of cars to the officers at the cost of the organisation which is already running with heavy losses. Expressing her utter displeasure, member committee Dr Azra Afzal Pechuho questioned: "Is it appropriate that a loss-making entity is awarding expensive cars to its executives on throwaway prices"?
She said that it is a public money and all the vehicles must be disposed of through auction, adding the cars should be transferred to its employees on market value rather than book value. Secretary Civil Aviation Authority (CAA) Muhammad Ali Gardezi intimated that management revisited the policy of entitlement of cars to GMS and above on May 09, 2008.
As per new policy, life of a car for the purpose of replacement/ transfer has been fixed at five years and if the car is used for less than five years, the transfer of cars to the GM and above, retiring upon superannuation, will be made on the exiting book value.
In a ruling, Convenor Committee said that PAC gave a general directive to all government owned entities that surplus vehicles should be auctioned. The committee observed that same directives were also issued to Oil and Gas Development Company (OGDCL). He further said such policies would be acceptable to PAC which were in the interest of people.
The committee also questioned irregular appointment of retired officers involving remuneration of Rs 2.166 million per annum. The PIA re-employed two retired officers as chief instructor and senior instructor (grooming) after their superannuation on a contract basis for a period of one year during June and September 2007 without approval of prime minister. The present management deems it to be a gross violation of prevalent rules and procedure, so much so that it decided to refer the case to FIA for probe.
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