Audit General Pakistan (AGP) commercial Audit Department’s has issued a report on irregular appointment of a legal consultant at Pakistan International Airlines (PIA).
According to the AGP report issued on March 16th, PIA management ignored the government’s orders and irregularly appointment a legal consultant Ahmed Rauf at a very high salary of Rs. 1,200,000 per month.
- This appointment was clearly in violation of policy guidelines of Establishment Division Government of Pakistan for the appointment of a consultant – circulated by Ministry of Defense.
- The range of compensation package, including various facilities depending on the nature of work involved also needed to be published but it was not done.
- Financial quotations were not mentioned.
- There was no mention of panel of 3 candidates for final selection.
- Management also violated the terms and conditions of advertisement.
- The extension of the contract was made in violation of PPRA.
- Initial appointment was made without the approval of the Board of Directors.
- Airline management allowed Abdul Rauf an additional Rs.200,000 per month for visits to other cities without actual expenditure. He visits these places on PIA’s expanse, free tickets are also allocated for his family. Additionally, none of the expenditure incurred on his salary, perks and privileges has been approved in the budget.
In the view of above-mentioned irregularities, APG recommends,
- Investigate the matter at the highest level and fix the responsibility on the persons at fault.
- The extra benefits must be withdrawn immediately.
- Loss caused to PIA may be recovered from the concerned consultant or the person at fault.
PIA management has taken no action on this report so far. The HR department says they didn’t get any direction from the management. Higher authorities will have to intervene as PIA is already incurring heavy losses and such appointments will only hurt the airline’s finances even more.