The Supreme Court was informed on Tuesday that the accumulated losses of national flag carrier, which were Rs 73 billion in 2008, increased to Rs 360 billion in 2018. Chief Justice Mian Saqib Nisar, heading a four-judge bench, noted that all the losses were incurred during the last two governments.
Farrukh Saleem, an economic and financial analyst who was appointed amicus curiae, gave a detailed presentation to the bench on multimedia about the colossal financial losses.
He said in the last four years, from 2013 to 2017, the accumulated losses were Rs 197 billion. The Chief Justice said Shujaat Azim had been in-charge of national airline since 2013. Azeem said that he was Assistant to PM on Civil Aviation for two years and remained advisor for one month. The Chief Justice inquired from him what experience and expertise he had that he was appointed head of Civil Aviation Division.
The court ordered the government to place his (Azim) name on Exit Control List, while maintained his order that all the former managing directors from 2008 to 2018 would not leave the country without the permission of the apex court.
The Chief Justice on April 6 had directed the incumbent managing director PIA to submit audit reports/statements of PIA accounts for the last ten years, while all the PIA MDs who held charge from 2008 to 2018 had been asked to appear before the court.
Farrukh said that the PIA financial losses in 10 years are the result of political interference, leakage and a bad CAA policy. The managing directors, chief executive officers and the advisors were appointed on the basis of political consideration. The political parties have influence in unions of pilots, engineers, technical staff and officers.
The Chief Justice remarked it was reported that the planes were leased for operation. Farrukh replied that 45 planes were taken on lease from 2008-17, while some where grounded which caused Rs 6.67 billion loss.
The Chief Justice inquired from Dr Farrukh about the difference between wet lease and dry lease. The analyst said that in wet lease a plane is taken on lease along with the cabin crew, while in the dry lease only plane is leased.
Dr Farrukh briefed that from 2008 to 2017 spares parts worth Rs 21 billion were purchased. The Chief Justice remarked when the planes were acquired on lease then why spare-parts were purchased. Dr Farrukh said that many spare-parts were not utilized after purchase, besides new ones were bought. He said that 287,000 free air tickets were issued in just one year and that cost to the national exchequer Rs 5 billion, while the medical expenses were Rs 3 billion.
The Chief Justice regretted that taxpayers' money is consumed by PIA. The Chief Justice inquired to whom all free tickets were given. He added that the court will look at this aspect of the case later.
The Chief Justice directed the MDs to submit a reply about the losses of PIA which were incurred during the period. He said after the reply the court would consider whether to constitute a commission or send the matter to NAB.
The Chief Justice hinted that he might head a commission that is formed for this purpose and will chair its meetings in his chambers. The case was adjourned for two weeks.