Auditor General of Pakistan (AGP) has pointed out serious discrepancies in the government’s bailout and guarantee loans provided to Pakistan International Airlines (PIA) during the last nine years. On AGP’s complaint regarding the matter, the airline management has taken action against its Chief Financial Officer (CFO).
AGP Director of Commercial Audit South wrote a letter to PIA Chief Executive Officer (CEO) Musharraf Rasool Cyan and raised the issue. AGP is conducting a special Audit of PIA on the orders of Supreme Court of Pakistan (SC) from 2008 to 2017.
In his letter, the AGP said that to fulfill the court’s orders the AGP Audit team requires the details of the financial support from the government to PIA from 2008 to 2017.
“On the account of GOP’s direct financial aid to PIA, airline management stated that Rs 23.565 billion were provided whereas Ministry of Finance stated that Rs. 31.80 billion was funded to support PIA during the same period. Similarly, the airline claimed GOP guarantees stand at Rs. 175.085 billion whereas the Ministry of Finance reports a figure of Rs. 177.230 billion,” the letter said.
After the AGP director’s letter, PIA CEO has taken action and issued a show cause notice to CFO Nayyer Hayat and asked him to clarify his position.
According to the show cause notice, the CFO provided misleading information to the audit team. It shows that he has failed to perform his duties with due diligence in providing information to the audit team despite repeated instructions. This act is tantamount to misconduct under Clauses 75, A,C and D PIA Employees Service and Discipline Regulations 1985.