PAC gives Rs7bn corruption case in Islamabad airport to new NAB chairman

Sherry Rehman says it will be a test case for newly appointed Justice (retd) Javed Iqbal

ISLAMABAD: Terming it as a test case for the newly appointed National Accountability Bureau (NAB) Chairman Justice (retd) Javed Iqbal, Public Accounts Committee (PAC) on Wednesday sent the issue of corruption of Rs7 billion in under construction New Islamabad International Airport to him.

A meeting of the PAC was held here Wednesday, which was chaired by Committee Chairman Syed Khursheed Ahmed Shah. MNAs Mehmood Achakzai, Sherry Rehman, Shaikh Rasheed, Naveed Qamar, Ashiq Gopang, Hidayatullah, Shafqat Mehmood, Azam Swati, Arif Alvi, Shaikh Rohail Asghar and Dr Azra Palejo, PIA CEO, PEPRRA chairman and Auditor General of Pakistan also attended the meeting.

Civil Aviation Authority Secretary Air Commdr (retd) Irfan Elahi briefed the meeting about corruption worth Rs7 billion in the project. He admitted that massive corruption has been done in the package four of the new airport. Brig (retd) Niazi was the project director of the said project, he said, adding the responsible persons must be held accountable.

The meeting was briefed that misappropriations had been made in the construction of the baggage terminal at the new Islamabad airport.

Khursheed Shah said that the cost of the terminal was mentioned as Rs3.9 billion in the project’s Planning Commission Form 1 (PC-1), but its actual cost had clocked in at Rs6.5 billion.

The PAC directed to hold a special audit of PIA premier service during the Nawaz Sharif rule. It was also revealed in the meeting that Rs36 million were spent on foreign tours of PIA directors during one year, while former CEO, who was a German citizen, paid 22 visits. CAA secretary told the meeting that New York route was inflicting loss of Rs1.50 billion per annum to the national flag courier service as the US has barred PIA from direct landing.

Azam Swati told that company was issued a license in 2016 while the contract of the new Islamabad International Airport was granted in 2013. He said heavy losses were inflicted to the national exchequer by the companies, with the connivance of top officials. He was of the view that if the embezzled money of Rs1.50 billion could have been spent on people of FATA instead, their fate would have been changed.

Sherry Rehman said that massive commission was collected from the project. She asked whether CAA was taking a nap when corruption was being done. She added that it will be a test case for newly appointed NAB chairman, adding investigation process would have to be completed within three months. She also sought action against the facilitators.

Ashiq Gopang said that, with the confession of crime by CAA, it was needed to learn why a Rs3900 million tender was given at Rs4600 million. Upon this, PEPPRA chairman said tender was floated ‘mistakenly’. The representative of Engineering Council alleged that CAA had given it wrong documents to mislead them.

PAC chairman raised a question that who was responsible for this massive corruption? He said two companies were detached from the project, and promises had been made of granting them a lease. He said Rs1.50 billion were invested by the ousted companies. He added that it was PAC’s endeavour that PIA could be saved, but the corrupt mafia has ruined it.

CAA secretary said that PIA board had decided in 2014 to change its policy regarding Boeing 777 seats. He said companies from France, Italy and other countries qualified for the tenders while PIA officials had paid $11.87 million to the said companies without a bank guarantee. Now, he said, this project has been given in $6.87 million, and it would be completed in next year.

PAC chairman instructed the audit officials to give a complete audit report of the previous three years, so that corrupt people could be nabbed. Shafqat Mehmood said PIA has become bankrupt while other companies are being paid in advance.

To a question, officials told that a murder case had been registered against the legal advisor PIA, who is currently drawing Rs1.5 million salary per month. To another query, it was told that PIA was facing a deficit on New York route for the past ten years.

Responding to a query, CAA secretary said that plane service was not possible on all routes due to a lack of sufficient planes. He said Najaf and Saudi Arabia routes were earning profits, whereas Bangkok route was going into deficit.

To another question, the official told that Director Purchase paid 15 visits and Rs 2.4 million were spent on the said tours. Similarly, Aamir Ali paid 13 tours, which cost Rs1.7 million; Nayyar Hayat paid 13 visits; Khurram Mushtaq paid 6 visits; Tabassum Daud spent Rs1.3 million, excluding fare and hotel rent.