Everyone makes mistakes and its common knowledge. However, PIA’s recent mistake has ended up costing the national air carrier millions of Rupees.
According to PIA’s management, the airline paid Rs. 54.5 million to Bugatti Automobiles due to a procedural mistake.
A spokesperson from PIA claims that the payment was made due to an irregularity on its part and not due to corruption. The PIA spokesperson further added that the company wants to keep its policies transparent. Interrogations are underway and the auditor general has been informed about any related objections.
FIA Looking Into The Matter
The Federal Investigation Agency (FIA) is investigating the issue as well due to the violation of Public Procurement Rules 2004. There were irregularities in PIA’s payments made to Bugatti for procuring brakes used in Boeing and Airbus planes.
According to PIA’s Audit Report 2016, the original manufacturer of the brake parts was not revealed. Furthermore, the brake makers were also given the authority to increase prices of these parts after the contract was signed.
This move comes just a day after PIA announced cost cutting operations for its Cabin Crew lobby. The new measures are expected to decrease costs of flight operations by 30%.
Earlier, PML-N Senator Mushahidullah Khan impersonated himself as a PIA employee while travelling to London. He was travelling to London for medical treatment. When he got to London, he stayed in a luxury hotel on PIA’s expenses.