National Assembly's Public Accounts Committee on Monday showed serious concerns on irregular appointments in Pakistan International Airlines Corporation (PIAC), which cost the government Rs 1.169 billion. The committee showed dissatisfaction over the performance of PIA during 2008-10 and directed the authorities that merit must be ensured in future appointments.
Nisar Ali Khan chaired the meeting. The committee was informed that in the flying carrier's engineering department, the management appointed 457 technical and 161 non-technical employees, totalling 618, in excess of the approved Human Resource Board, by engineering department involving heavy payment of Rs 1.169 million, from January 2006 to April 30, 2009.
The matter was reported to the management in September 2008. The management in it reply accepted that 452 officers and engineers were shown over and above the approved strength due to promotion of technical pay group III either through time scale promotion or one-time promotion policy. The management had also inducted MBAs/MPAs graduated as trainee officers and deployed to replace employees who were due to retire, or got retirement. Regarding staff groups I &II, it was stated that excess staff of 106 would be inducted against available 174 vacancies.
Reviewing the audit objection, the PAC directed the Managing Director, Captain Ijaz Haroon, not to induct anyone against the recruitment policy of PIA. Committee chairman alleged that present PIA management is again violating the induction rules, hiring Faisal Malik as director, who had no experience as required for the said post. The salary and other perks of the incumbent amounted to more than Rs 2 million.
PIA MD urged the committee that a special audit committee should be established to look into the appointments made during 2008-10 and he would face accountability in case of any irregularity. Responding to MD's suggestion, PIA chairman directed to submit the list of all those employees of PIA who have been appointed during 2008-2010 for scrutinising.
Audit reports also stated that the corporation's current assets as on December 31, 2008 stood at Rs 15.039 billion which were much lower than its current liabilities of Rs 71.708 billion. This adverse position cast serious doubts over the corporation's ability to meet its short-term debt obligations and its continuation as an on-going concern.
Moreover, the long-term debts of the corporation stood at Rs 100.472 billion as on December 31, 2008 which exceeded its total equity of Rs 32.509 billion, which depicted reliance of the corporation over debts. During 2010, the long-term debt obligations reached up to Rs 144.89 billion.
The PAC was further informed that in PIA Logistic Division Karachi, a large number of spare parts (44,241 items) of various aircraft, valuing Rs 574.114 million were lying unused, and the management had declared them as surplus, without following the prescribed procedure of corporation. The aircraft spare parts were purchased unnecessarily. Responding to another query, he replied that the corporation had submitted operational details of all those destinations which cause losses to government entity. "If summary is approved, we could curtail extra losses," he added.