SC decides not to place former PIA managing directors on ECL
SC appoints economist Farogh Saleem as amicus curiae to dig out details
Pakistan International Airlines. PHOTO: AFP
ISLAMABAD:
The Supreme Court has decided to find out causes behind the ‘colossal losses’ incurred by the Pakistan International Airlines (PIA) since 2003.
“We want to fix liability. We also want to examine the causes behind the losses,” said Chief Justice of Pakistan Mian Saqib Nisar, who was very upset after hearing that PIA faced Rs350 billion losses since 2003.
Last time the national flag carrier earned a profit was in 2002.
The three-judge bench, headed by the CJP himself, hearing the suo motu case appointed renowned economist Farogh Saleem as amicus curiae.
Airlines not fulfilling legal obligations: report
Saleem sought two weeks’ time to furnish the terms of reference to conduct an inquiry in order to identify the reasons of losses incurred by the PIA.
The bench also asked Saleem to examine the issue, wherein it is alleged that the profitable routes of PIA have been sold out to private airlines.
Further, the bench decided not to place the names of former managing directors of PIA for the last 10 years on the Exit Control List (ECL) after an undertaking by the former officials to stay in the country till the apex court concluded the suo motu case regarding privatisation of the national asset.
The officials will only be able to travel abroad after receiving permission from the Supreme Court.
During the hearing, Attorney General for Pakistan Ashtar Ausaf Ali informed the apex court that privatisation was approved by the Council of Common Interests (CCI) but it was unlikely that the process would be completed during the tenure of the current government.
The AGP said, “Before doing anything in this regard, the court will be taken into confidence.”
Another member of bench, Justice Ijazul Ahsan wondered that who would purchase PIA that registers Rs60 billion loss annually.
The bench also questioned the appointment of Adviser to the Prime Minister on Aviation Mehtab Abbasi.
Earlier, during the hearing, PIA Chief Legal Adviser Ahmad Rauf submitted the airline’s balance sheet for previous years along with the audit reports.
It has been told to the SC that PIA suffered a loss of Rs4.94 billion in 2009, Rs20 billion in 2010 and Rs26 billion in 2011.
Upon inquiry, the court was informed by PIA’s counsel that Aijaz Haroon served as the MD of the national flag carrier during the period.
The bench was further informed by the national carrier’s counsel that Nadeem Khan Yousufzai and Rao Salman served as managing directors from 2011 to 2012 and PIA suffered a loss of Rs30 billion during that year.
Elaborating further, it was revealed in court that loss incurred in 2013 amounted to Rs43 billion, during Junaid Younus’ tenure and Rs37 billion in 2014.
Incompetent domestic airlines
During 2015, Shahnawaz and Nasir Jafri were the managing directors and the flag carrier suffered a loss of Rs32 billion. In 2016, PIA had three different managing directors; Nasir Jafri, Irfan Ilahi and German citizen Bernd Hildenbrand. The loss suffered during the year amounted to Rs45 billion.
The bench lamented that the national carrier had been decimated by those who served in the airline.
The court also sought a reply from CLO Rauf regarding his appointment.
On the query of the bench, Rauf told that he was getting Rs1.5 million per month salary.
He also offered that he might recuse himself from appearing as a counsel in this case, but the bench asked him to submit reply and adjourned the hearing for two weeks.
The Supreme Court has decided to find out causes behind the ‘colossal losses’ incurred by the Pakistan International Airlines (PIA) since 2003.
“We want to fix liability. We also want to examine the causes behind the losses,” said Chief Justice of Pakistan Mian Saqib Nisar, who was very upset after hearing that PIA faced Rs350 billion losses since 2003.
Last time the national flag carrier earned a profit was in 2002.
The three-judge bench, headed by the CJP himself, hearing the suo motu case appointed renowned economist Farogh Saleem as amicus curiae.
Airlines not fulfilling legal obligations: report
Saleem sought two weeks’ time to furnish the terms of reference to conduct an inquiry in order to identify the reasons of losses incurred by the PIA.
The bench also asked Saleem to examine the issue, wherein it is alleged that the profitable routes of PIA have been sold out to private airlines.
Further, the bench decided not to place the names of former managing directors of PIA for the last 10 years on the Exit Control List (ECL) after an undertaking by the former officials to stay in the country till the apex court concluded the suo motu case regarding privatisation of the national asset.
The officials will only be able to travel abroad after receiving permission from the Supreme Court.
During the hearing, Attorney General for Pakistan Ashtar Ausaf Ali informed the apex court that privatisation was approved by the Council of Common Interests (CCI) but it was unlikely that the process would be completed during the tenure of the current government.
The AGP said, “Before doing anything in this regard, the court will be taken into confidence.”
Another member of bench, Justice Ijazul Ahsan wondered that who would purchase PIA that registers Rs60 billion loss annually.
The bench also questioned the appointment of Adviser to the Prime Minister on Aviation Mehtab Abbasi.
Earlier, during the hearing, PIA Chief Legal Adviser Ahmad Rauf submitted the airline’s balance sheet for previous years along with the audit reports.
It has been told to the SC that PIA suffered a loss of Rs4.94 billion in 2009, Rs20 billion in 2010 and Rs26 billion in 2011.
Upon inquiry, the court was informed by PIA’s counsel that Aijaz Haroon served as the MD of the national flag carrier during the period.
The bench was further informed by the national carrier’s counsel that Nadeem Khan Yousufzai and Rao Salman served as managing directors from 2011 to 2012 and PIA suffered a loss of Rs30 billion during that year.
Elaborating further, it was revealed in court that loss incurred in 2013 amounted to Rs43 billion, during Junaid Younus’ tenure and Rs37 billion in 2014.
Incompetent domestic airlines
During 2015, Shahnawaz and Nasir Jafri were the managing directors and the flag carrier suffered a loss of Rs32 billion. In 2016, PIA had three different managing directors; Nasir Jafri, Irfan Ilahi and German citizen Bernd Hildenbrand. The loss suffered during the year amounted to Rs45 billion.
The bench lamented that the national carrier had been decimated by those who served in the airline.
The court also sought a reply from CLO Rauf regarding his appointment.
On the query of the bench, Rauf told that he was getting Rs1.5 million per month salary.
He also offered that he might recuse himself from appearing as a counsel in this case, but the bench asked him to submit reply and adjourned the hearing for two weeks.