Zulfi Bukhari. PHOTO: FILE
The state-owned hotel was situated in a high-security area, due to which construction of extra floors was not allowed, Bukhari told Senate Standing Committee of Cabinet Secretariat.
Regarding the deteriorating condition of the British-era hotel that still has fixtures and furniture from the days of the Raj, the SAPM said its sole solution was commercialisation.
The Senate Standing Committee on Cabinet Secretariat in its meeting held on Tuesday was briefed by the PTDC Management on the deteriorating condition of Flashman Hotel, Rawalpindi.
The Public Petition submitted by Princess Zainab, mother of Jam Kamal was also taken up.
Chaired by Senator Javed Abbasi, the meeting was attended by Senator Semi Ezdi, Senator Mushtaq Ahmed Khan, Senator Rubina Khalid, Senator Naseebullah Bazai and senior officers of the Cabinet Division, Ministry of Parliamentary Affairs, the Ministry of Law and Justice, NEPRA, National Task Force on Tourism, National Tourism Coordination Board (NTCB), Pakistan Tourism Development Corporation (PTDC).
Federal Minister for Parliamentary Affairs, Senator Azam Khan Swati and SAPM Bukhari were also present.
The committee sought details of the ownership of Flashman Hotel and dues of PTDC against the government.
Bukhari said he would release a white paper on nepotism in PTDC and expose people who have brought organisation to the brink of destruction.
PTDC Managing Director Intikhab Alam gave a detailed briefing about the numbers of employees and the financial situation of FLashman Hotel. The PTDC MD said that the federal government has 87 per cent share of and state-owned institutions, private organisations and individuals have 13 per cent shares in the hotel.
Alam said privatisation of the hotel could not be materialised due to ownership issue.
He said that except one or two years, the hotel has remained in a loss for last 10 years.
The state of the financial crisis is such that the hotel management could not renew the contracts of daily wage employees. He said that currently 74 people were employed at Flashman Hotel.
Besides being on prime location real estate, Flashman Hotel has Excise Department license to sell liquor to minorities, PTDC MD Alam said. However, he added, liquor was not served on tables at Flashman Hotel. The only other hotel having licenced liquor shop was Pearl Continental, he said.
Senator Javed Abbasi said the organisation should generate its own resources rather than depending on the government.
“It seems that the government has no capacity to run Flashman Hotel, so it should find solution of the issue,” Senator Abbasi said.
Regarding PTDC dues, Alam said, government has to pay Rs680 million to the corporation.
While discussing the way forward the Committee recommended that for fixing the liabilities of Flashman Hotel, the forensic audit may be carried out and a detailed report may be submitted to the Committee within a month. The Committee, showed concerns on the dilapidating financial and management conditions of the Flashman Hotel. The Chairman National Task Force on Tourism, Sayed Zulfiqar Abbas Bukhari assured the Committee that the government is in the process of commercialising the Flashman Hotel and in this regard professional consultants are being hired for formulating a framework.
The National Task Force on Tourism Chairman assured that a detailed report will be submitted to the Committee within three months period.
The Committee Chairman Senator Muhammad Javed Abbasi directed that the case of private shareholders must be taken up and a component regarding this must be included in the terms of reference (TORs)of the proposed commercialisation of Flashman Hotel. The management of PTDC assured that the component for the private shareholders will be included in the TORs.
Published in The Express Tribune, November 6th, 2019.
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