Pakistan International Airlines (PIA) has uploaded its financial statements for 2017 on its website despite the refusal of its auditors to sign the statements citing missing records.
KPMG Taseer Hadi, Ernst and Young and Ford Rhodes have refused to sign the financial statements for the first half and July-September (third quarter) of 2017, which is the reason why the national flag carrier’s administration is yet to finalize the annual audited reports.
The same is true for 2018 as well.
The state-owned airline hasn’t been meeting regulations set by the Securities and Exchange Commission of Pakistan (SECP) and Pakistan Stock Exchange (PSX). It has been unable to present audited statements, which can lead to certain financial implications and criminal proceedings.
The auditors have declined to sign off on the financial statements because of lack of data, misreporting and the possibility of a fraud, which is why the statutory auditors haven’t signed the statements.
According to the sources, the record was incomplete due to the fact that the company had shifted from the previous system to Oracle Enterprise Resource Planning (ERP) for recording daily business transactions.
PIA now comes under the SECP’s Companies Act of 2017 as the previous government had converted the ailing flag-carrier into a company.
The current government has advised PIA to draft a five-year revival plan, which is now under question due to the absence of audited financial reports.