PIA Board of Directors Should Select a CEO Independently: SC

The Supreme Court has underlined that the Board of Directors (BoD) of Pakistan International Airlines (PIA) should independently select the Chief Executive Officer (CEO) of the national airline.

The top court opined that the Board should be independent, transparent, and impartial while selecting the most suitable candidate for the said position.

“BoD is responsible for the planning, succession, and appointment of CEO of the company and in doing so it has to evaluate the potential candidates on the fit and proper criteria,” said the apex court in its judgment on a case pertaining to the appointment of Musharraf Rasool Cyan as the national flag carrier’s CEO.

The judgment also states that the airline’s Board has the mandate to formulate a ‘code of conduct’ for its functioning and also that of all junior or senior officials of the management.

It stated that strict compliance is required regarding the fundamental principles of propriety, probity, honesty, and integrity to make sure that national assets aren’t plundered and there isn’t a conflict of interest catering to the vested interests of anyone.


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The judgment also required the board to declare their interest in the form of a register. Moreover, it should chalk out policies to minimize identification, corruption, and risks monitoring.

SC Judgment

The SC had issued a short order on September 3, nullifying the appointment of Cyan as the PIA CEO. It further stated that the adopted procedure for his appointment did not follow the prescribed law and rules.

The court further ordered the federal government to appoint a new CEO of the PIA. It stressed that the appointment should be on merit and in accordance with the law.

As per the details, an application was filed in the SC, calling the former Chief Justice’s attention to the issue. It alleged that several top officials of PIA lacked the lawful authority for holding their respective offices.

It further alleged that these officers intended to sell PIA’s assets at a throwaway price. Among others, another allegation was that these officers had closed down the profitable routes and given them to other airlines.

Via: Dawn

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