ISLAMABAD: The federal cabinet is said to have set aside the reservations of Secretary Cabinet on appointment of Air Marshal Arshad Malik, as consultation process was completed prior to the cabinet meeting, well-informed sources told Business Recorder.
Aviation Division, sources said, informed the cabinet on July 7, 2020 that Air Marshal Arshad Malik, Vice Chief of Air Staff was appointed as Chief Executive Officer, Pakistan International Airlines Corporation from April 26, 2019 on secondment/deputation basis under JSI 4/85 for a period of three years with the approval of Federal Cabinet.
Air Marshal Arshad Malik retired, on July 12 2020, upon attaining the age of 58 years under the provisions of the PAF Act Rules, 1957.
PIACL advertised the position of CEO in the newspapers on January 8, 2019 to fill the vacancy on regular basis as per Schedule 1 of the Public Sector Companies (Appointment of Chief Executive) Guidelines, 2015. In response, total 34 applications were received.
Selection Committee comprising five Board members constituted by PIACL Board of Directors was assigned to scrutinize the applications. The Committee interviewed 23 out of 24 eligible candidates on February 8, 2019 and finalized five candidates with highest score for consideration of the Board. After thorough evaluation, the Board recommended following three candidates to the Aviation Division in the following order of merit: (i) Air Marshal Arshad Mahmood Malik; (ii) Dr. Aamer Ahmed and; (iii) Syed Faisal Ilyas Siddiqui. Accordingly, a summary of March 21, 2019 was submitted to the Cabinet with following proposal:
"Approval of the Cabinet is solicited to appoint any one of the recommended candidates as Chief Executive Officer, PIACL for a period of three years, in terms of Rule 5(2) of the Public Sector Companies (Corporate Governance) Rules, 2013. In case Air Marshal Arshad Malik is appointed as CEO, his appointment will be on secondment basis, on standard terms and conditions as contained in JSI 4/85 being a serving Armed Forces Officer."
The Cabinet decided as follows: "The Cabinet considered the summary of March 21, 2019 submitted by Aviation Division and in accordance with proposal granted approval for appointment of Air Marshal Arshad Malik as Chief Executive Officer, Pakistan International Airline, Corporation Limited. His appointment was made on deputation basis, on standard terms and conditions as contained in JSI 4/85 being a serving Armed Forces Officer."
Establishment Division vide Notification issued on April 26, 2019 appointed Air Marshal Arshad Malik as Chief Executive Officer, Pakistan International Airlines Corporation Limited, under Aviation Division on secondment/deputation basis, for a period of three years, on standard terms and conditions as contained in JSI 4/85 being a serving Armed Forces Officer with immediate effect.
Aviation Division was of the view that Air Marshal Arshad Malik was appointed as CEO PIACL, under the provisions of Companies Act, 2017 and Public Sector Companies (Corporate Governance) Rules, 2013, through a competitive process, for a period of three years and since he was a serving Air Force Officer, his appointment was approved by the Federal Cabinet on Secondment basis.
Aviation Division further contended that since the officer was retiring on 12th July 2020, Aviation Division proposed that for the remaining period of his tenure (from 13th July 2020 till 25th April, 2022), after his retirement from Air Force, the terms and conditions of his employment may be amended from Secondment basis, on standard terms and conditions as contained in JSI 4/85, to contract basis till April 25, 2020 on terms and conditions to be determined by the Board of PIACL in terms of section 188 of the Companies Act, 2017 read with section 7(1) of the Public Sector Companies (appointment of Chief Executive) Guidelines, 2015.
Owning to paucity of time, Establishment Division and Law and Justice Division had been requested separately to share views/comments on the proposal during the cabinet meeting.
During discussion, the Cabinet Secretary said that the representative of Law & Justice Division was present in the meeting whereas Secretary Establishment Division had requested for more time to examine the case. The Cabinet Secretary further informed that the summary was submitted after the stipulated timeframe and lacked necessary stakeholder consultation, taking a decision on the summary in its present shape might lead to future complications.
It was clarified by the sponsoring Division that the summary was just a change in terms of employment of the incumbent, who was appointed by the Cabinet for three years after a competitive process. After discussion, the Cabinet approved the appointment of Arshad Malik as CEO PIACL despite opposition by the Secretary Cabinet.
Copyright Business Recorder, 2020