The reported submission of a fake audit report and business plan to a Saudi Prince interested to acquire stakes in the crisis-hit Shaheen Airline International (SAI) has compelled the investor to withdraw from the Memorandum of Understanding (MoU) it earlier signed with the owners for the acquisition of stakes.
The owners of Shaheen Air International (SAI) reportedly tried to cheat the Saudi Prince by submitting a fake audit report of the airline and a business plan.
Shaheen Airline has however denied the report by saying that it has clarified in past that nothing has happened with financial deal and that airline is at edge of getting things sorted out in the best interest of an airline.
“It is not very far that shaheen will shine again in much brighter way than ever”, said an email statement from Shaheen shared with ProPakistani.
A close aide of the Saudi Prince, on the Other side, told ProPakistani that the newly-appoint Chief Operating Officer (COO) of the airline presented a new audit report of the airline to the investor. The new audit report is in stark contradiction of the earlier submitted audit report and the business plan.
The source said that after going through the findings of the new audit report, the Saudi Prince decided to withdraw from the MoU signed for acquiring stakes in the SAI.
They said the new report is contradictory to the business plan and assets report presented by SAI owners at the time of the MoU signing.
The new audit report discloses that SAI owners submitted a fake business plan and assets owned by the airline. The report said the SAI has no worthy assets such as aircrafts and ground equipment. At this point of time the airlines has no considerable worth.
“The owners of SAI submitted fake business plan and assets that were already pledged to banks against heavy loans. Even the Head Office building shown as Shaheen Airlines’ asset which is actually on CAA’s leased land and the building is pledged to a local bank,” the source revealed.
The report said that 65 percent shares of the airline were already pledged to ‘Ilahi Group’, a local financer of the airline. Illahi Group is expected to oppose the takeover of the airline as loan amounting millions of dollars were not paid against pledged shares.
The Saudi investor has refused to pay five-month salaries of the employees, saying that the salaries must be paid by the Sebhai management.
On the other hand, employees of the SAI staged a protest demonstration in front of the airline’s head office. They demanded early disbursement of their five months’ pending salaries.
On the default Rs. 1.44 billion, the Civil Aviation Authority (CAA) canceled the Regular Public Transport License (RPTL) earlier this year. The CAA has also served a final notice for the recovery of leased land and office rent. The airline has no aircraft in its fleet at present.