–SC also puts former aviation head’s name on ECL as PIA counsel informs court that airline suffered Rs 260.39bn losses during last 17 years
ISLAMABAD: Chief Justice of Pakistan (CJP) Mian Justice Saqib Nisar on Tuesday ordered an inquiry against the country’s former aviation head, Shujaat Azeem and ordered that his name be placed on the Exit Control List (ECL) over his alleged mismanagement of the Pakistan International Airlines (PIA).
He said this while hearing a suo motu notice on PIA’s reported privatisation and poor financial condition. He also said that all those who damaged PIA will be punished.
Former aviation adviser Shujat Azeem and present aviation adviser Sardar Mehtab Abbasi were also present in court.
While addressing Abbasi, the CJP remarked that the PIA did not suffer in his tenure, but he should review what all has happened to the national carrier. He added that the court is well aware how and why Azeem was made the aviation chief.
Azeem served as the prime minister’s aviation adviser as well as special assistant on aviation but had to resign from both posts after the Supreme Court’s intervention on various illegalities.
As the hearing began, the CJP inquired whether all former managing directors (MD) of the airline were present in court.
Economist Farrukh Saleem, who was appointed amicus curiae by the court earlier, informed the court that PIA’s loss stood at Rs36 billion in 2008.
At the last hearing, the CJP ordered the government to seek the apex court’s approval before proceeding with the privatisation of the Pakistan International Airlines (PIA).
The Supreme Court (SC) on April 1, had taken notice of PIA’s decision to give up profitable routes to other airlines and its intended privatisation by the government.
During the hearing, the CJP first ordered authorities to place the names of all former managing directors (MDs) of the PIA on the Exit Control List (ECL). However, he later withdrew the order but bound the former officials to get the court’s permission before leaving the country.
Giving government’s take on the issue, AG Ashtar Ausaf Ali informed the court that the privatisation was approved by the Council of Common Interests (CCI). However, he added, it was unlikely that the process will be completed during the tenure of the current government.
RS260.39BN LOSSES DURING LAST 17 YEARS:
As directed in the previous hearing, PIA’s counsel presented a 9-year audit record and informed in response to a query that the organisation’s share is being sold at Rs 5 at present.
The PIA counsel further informed the court that the airline suffered Rs 260.39 billion losses during last 17 years. The breakdown of the losses was Rs 44 billion in 2013, Rs 37 billion in 2014, Rs 32 billion in 2015, Rs 45 billion in 2016 and Rs 44 billion in 2017.
“The government of Pakistan owns 96 per cent stakes in the airline. Since April 2016, PIA has been functioning as a public limited company. It is being run as per a corporate model,” he added.
He said that the board of governors of the company consists of 11 members, a majority of whom are appointed by the government.
“Aviation secretary is the chairman and member of the board. Irfan Illahi is the elected member of the board and Economic Affairs Division secretary is also a member of the board,” he said.
Other airlines had taken advantage of reduced petroleum prices but PIA failed to do the same, the lawyer admitted.
The CJP-led three-member bench directed the counsel for the airline to submit a report on the deficit suffered by PIA during the last nine years and to separately state the deficit of each year and highlight who the managing director of the airline was during that year.
The court also ordered submission of a list of all chairmen, advisers, and managing directors of PIA.
Later, the court quashed a petition against the PIA administration that pertained to ‘favouritism in award of internships’. There are no laws regarding internships, the court said.
On March 31, the apex court asked the federal government whether there was any intention to privatise the PIA. Following that, the court had then issued notices to PIA chairman and ministry of defence directing them to submit their respective replies. The court’s order sheet also asked whether certain profitable routes of the national airliner had been given to other airlines, including Airblue.
