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PIA: Pakistan International Airlines

PIA Boeing 777
PIA on verge of fiscal death.....!!
Airlines accumulative financial losses cross to Rs 142 billion; Inefficient & unprofessional Managing Director, Captain Ejaz Haroon is responsible for pushing Airlines  further into deep crisis
General (Retired)  Musharraf's 09-year long tenure also proved unfortunate & disastrous to PIA. A brief 'White Paper' on PIA's loot. More reports to be added soon

NOTE: Please write to us if you have any comments on PIA. We are impartial as we want to see PIA's national & international image to be restored. We have no political, financial or personal interests whatsoever may be, in the national airlines. Please cooperate with us to expose "big fishes" who are still looting PIA with both hands. Kindly send us e-mail. If you want to keep your name and email secret, we promise to do so in your interest. Our email address is: sindhweek@ymail.com In subject, please write write: "PIA". Since we are updating this page from time to time, please visit us frequently and also inform about this website to your friends and well wishers - ed. Last Update: January 02, 2010
Corruption in PIA rampant: Director HR
& Admin Hanif Pathan daringly selling various posts;PSO post sold at Rs 5 lakhs
KARACHI, SINDH: [SindhWeek.Com Report] It is reported PIA's HR & Administration chief M. Hanif Pathan is looting financially sick national airlines, PIA with both ends and reportedly selling different vacancies
being occurred in PIA from time to time including PSO at the rate of
Rs 5 lakhs each.
Sources closed to civil aviation revealed Mr Pathan who is known as an inefficient officer and
was side-lined by previous chairman Tariq Kermani as he (Mr Pathan) was rated adverse confidential report in 2005 like "Need Improvement" (the lowest rating) as such he was not eligible for promotion for next five years but present Managing Director, Captain Ejaz Haroon
has illegally promoted him to the post of Director Administration backdated (since 1999) and
also paid him arrears of Rs 41 lakhs.


It is further reported Mr Pathan is posing himself as Sindhi as they have already low representation in PIA whereas he was a 'fake Sindhi'. However, he had remained associated
with Mir Ali Ahmed Talpur, ex-defence minister in army dictator General Zia regime and used to claim he (Mr Pathan) was his "adopted son".

Mr Pathan has also worked as General Manager, Flight Services where he sold vacancies of Airhostess at the rate of Rs 2.5 million. An inquiry was already ordered against him but he, later, got matter hushed up.

After, PPP coming into power, Hanif Pathan changed colour like chameleon and succeeded in assuring PPP Govt that he was pro-PPP & Sindhi whereas facts speak otherwise. After
becoming Director HR & Administration, Mr Pathan is openly selling different vacancies
through his cousin R. A. Pathan who is a junior officer working at PIA Flight Kitchen and
also acting his "Agent", He was so important when Hanif Pathan met Sindh chief minister
Syed Qaim Ali Shah as news-item printed in Urdu daily Jang sometime back, he
(R. A. Pathan) was with him.

It is learnt Mr Amanullah Soomro, ex-officer of PIA has sent various applications to higher authorities and chief justice of the Supreme Court of Pakistan giving details of the corruption being committed by Hanif Pathan.

A high-level impartial inquiry would reveal Mr Hanif Pathan's financial irregularities, bungling
& misappropriation, sources added
(09l0491)d
 

Dunyaa Eik Taraf, Joroo Kaa Bhaii Dosri Taraf
This is PIA: Inefficient 'Saalaa Sahib'
G R Pathan now becomes Manager
after getting out of way promotion
PIA sincere workers' appeal to chief justice, supreme court of
Pakistan to take sou moto action into corruption of M. Hanif Pathan
ISLAMABAD, PAK: [SindhWeek.Com Report] No doubt, PIA has been turned into
"Loot-Daa-Maal" not only by Managing Director, PIA Captain Ejaz Haroon himself but also
his crony M. Hanif Pathan who is currently working as Director HR & Administration.

It is reported that Mr Hanif Pathan is selling various vacant posts through his brother-in-law (Saalaa Sahib) namely Ghulam Rasool Pathan (commonly known as G R Pathan) presently
working in PIA Flight Kitchen for the last two years whereas sincere, honest and
hard-working people are told about prevailing ban on the promotions but for "Saalaa Sahib",
there is no such ban as he is above the law.

The latest news is Director HR & Admn, PIA M. Hanif Pathan by showing favourtism and
nepotism has promoted his brother-in-law Ghulam Rasool Pathan alias G R Pathan (generally
known as Saalaa Sahib) as Manager Customer Services in PIA
.

In a short of period of 2 years, highly corrupt & inefficient officer G R Pathan has been
rewarded 3 promotions and he recently reached to lucrative Pay Group VIII post which he
does not deserve at all. This was all due to maneuvering of M. Hanif Pathan, Director HR & Administration who is continuously supporting his "Saalaa Sahib" out of way because he is
also managing his all "dirty works" meant to mint money, in the national airlines.

The hard-working, honest and sincere workers of PIA have appealed to chief justice of the supreme court of Pakistan Justice Iftikhar Chaudhry to take sou moto action into highly
corrupt activities of M. Hanif Pathan, Director HR & Administration who is committing
nepotism and favourtism flagrantly in PIA, resulting in further disheartening the sincere and
honest employees working in financially sick national airlines. Also they demanded impartial
inquiry about the recruitment of airhostesses for the period when M . Hanif Pathan was
General Manager, Flight Services and he reportedly got hushed up the inquiry against him for recommending / appointing airhostesses who did not meet criteria by taking bribe
(09l2091).
More details about misdeeds / irregularities of Hanif Pathan and his "Salaa Sahib" to appear
soon - ed.

PIA needs only 142 years to overcome its deficit..!!
ISLAMABAD, PAK: [SindhWeek.Com Report] A private TV channel disclosed that PIA's accumulative deficit has crossed to Rs 142 billion. If PIA check the ever increasing deficit
and start paying for recovery at the rate of Rs one billion annually, it will take 142 years to recover
(09l0291).

Removal of MD Capt Ejaz Haroon must to save PIA
ISLAMABAD, PAK: [SindhWeek.Com Report] The inefficient and unprofessional Managing Director, PIA Captain Ejaz Haroon has further pushed the national airlines - PIA into deep financial crisis by jeopardizing the very existence of the 56-year old national airlines which was once treated as one of the prestigious airlines of the world.

Captain Ejaz Haroon, sometime back in an interview with GEO TV Urdu program "Kamran Khan Keay Sath" had admitted that "PIA has become technical bankrupt". Strangely, after his clear confession in public about financial sickness of the PIA on TV, he tried to backed out after a few days. According to sources close to civil aviation, the unprofessional approach of Captain Ejaz Haroon has put the national airlines in further deep crisis and their is possibility, if situation remains , the national airlines may pack up its business at any time.

Captain Ejaz Haroon (who claims to be personal friend of President Asif Ali Zardari ) seems not to be much worried about the future of the financially sick national airlines as he has failed to take effective remedial measures on time for the recovery of sick PIA except
issuing mere statements in press, said sources closed to national airlines.

The Pakistan International Airlines (PIA) has suffered accumulated losses of over Rs 40 billion since January 2008, with losses of Rs 5.4 billion in the first six months of 2009 as informed National Assembly House on Oct 16, 2009.

Briefing the National Assembly on Oct 16, 2009, the Defence Ministry said the PIA’s losses in 2008 amounted to Rs 35.88 billion. Defence Minister Ahmed Mukhtar said there were no plans to privatize the national airlines despite the losses.

He said PIA was assessing various aircraft for induction into its fleet and would consider other options for tapping financial resources after finalizing the type of aircraft
(09j17dt)#
 

Misdeeds & irregularities of present inefficient Managing Director, PIA Captain Ejaz Haroon

Haroon
Captain Ejaz Haroon is presently working as Managing Director, PIA. Basically,
he is a serving pilot of Boeing 777 aircraft. Previously, he worked as Director Airport Services in PIA for short time.
As per his repeated claim in public, he is a 'personal friend' of President Asif Ali Zardari
who is also Co-Chairman of ruling Pakistan Peoples Party (PPP).

According to civil aviation analysts, nomination of Captain Ejaz Haroon for heading financially crippled national airlines was totally wrong, bad decision and based on
personal likings as he has no merit to head the national airlines which is already on
verge of financial death as he does not possess such capability to head the airlines which
is facing more than Rs 142 billion accumulated huge deficit.

Captain Ajaz Haroon in "Kamran Khan Kay Sath Programme" on popular GEO TV categorically admitted that PIA was financially dead but after a few days, he surprisingly backed out what he said on GEO TV and witnessed by millions of people in Pakistan as
well as abroad.

Instead of preparing a comprehensive plan to pull out PIA from serious financial crisis, inefficient Captain Ajaz has adopted 'cheap tactics' to show his loyalty with the country's head (Asif Zardari). For example, he placed a big portrait of ex-Prime Minister Shaheed Benazir Bhutto behind his seat in the main office at Karachi and was telling visitors that he was personal friend of President Asif Zardari.

He miserably failed to adopt any extensive and viable plan to pull out the airlines from serious financial crisis. Instead, PIA's huge deficit (Rs 142 billion) is increasing alarmingly every month.

During recent PIA Pilot's strike, he took it personally and handled in very awkward way despite PIA Pilots in the past have gone strike or observing "Go Slow" or "Go by Book"
but the then heads of PIA handled the situation graciously. Here, what Captain Ajaz
Haroon made the promises with Pilots, he after sometime backed out. Therefore, PALPA - Pilot Association has eliminated membership of Captain Ajaz Haroon.

Captain Ejaz Haroon confirmed the services of about 6,000 people working on
daily-wages basis who were recruited during the period of Gen (r) Musharraf. Instead of confirming people on merit, Captain Ajaz Haroon indiscriminatingly confirmed such large number of people pushing PIA into further deep crisis.

Civil aviation analysts say if Govt is serious to pull out PIA from increasing serious financially crisis, inefficient Managing Director has to be kicked out and some efficient and able officer to be appointed for heading the national carrier
(09j1191).
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PIA already bankrupt? Bad show of MD, Captain Ejaz Haroon on TV Program;
Takes somersault after 5 days: The News
KARACHI, SINDH: [SindhWeek.Com Report] A leading English daily "The News" has printed
a story that how MD, PIA is trying to hush up earlier claim of bankruptcy of PIA. The paper writes (Aug 06):

Kamran Khan in the Geo TV talk-show deduced from the PIA balance sheet that the liabilities were more than the assets to which the MD-PIA agreed. This was attributed as bankruptcy.

In these times of global recession, many airlines and businesses are having similar balance sheets and not being interpreted bankrupt, a PIA press release said on Wednesday.

In response to a news report by Kamran Khan published of August 1, 2009 in The News International, the translation of the same was published by daily Jang, the MD-PIA had specifically requested for a live talk-show so that people of Pakistan may hear the facts first hand. Taking refuge behind technical reasons and assuring the MD-PIA that the program will not be edited, some portions of the program were edited and ended abruptly.

Here are the following financial facts:
(1) PIA is meeting all its financial obligations. (2) There is no vendor or supplier where PIA had defaulted in payments. (3) PIA is meeting all its payroll obligations. (4) PIA has a fully funded pension program. (5) PIA is given extended credit by foreign agencies i.e. General Electric manufacturers of aircraft engines, an important supplier of PIA increased credit from dollars 2 million to 6 million on normal terms, previously the same company used to take advance cash for supplies. Had PIA been a defaulter or bankrupt, the GE would not have agreed to this financial engagement. (6) PIA has good standing with all regulator agencies (7) PIA has just attained certification from the International Organization of Safety Audit (IOSA) (without IOSA certification, an airline cannot operate). (8) PIA has sound financial standing with the International Air Transport Association (IATA).

Mr. Kamran Khan should have the sagacity to understand that PIA is a national airline providing livelihood to 18,000 employees and their families about 100,000 people and PIA management is making every effort to get the PIA out of financial crisis that they inherited.

Trumpeting bankruptcy is damaging the image of the national flag carrier and the country and that too by giving incorrect information to general public and media.

About the regularization of 6,000 contract employees, the MD-PIA was misquoted. It was explained at length that the regularization of these employees was no burden on the airline funds as these employees were already employed since many years and were already being paid emoluments through an employment contractors so it was no additional financial burden on PIA.

Kamran Khan adds: It was MD’s personal decision announced through newspapers that he would respond to my story only through Aaj Kamran Khan key Saath. Tens of millions of Geo viewers shockingly saw the PIA chief acknowledging ,without any hesitation , that PIA was a bankrupt company.

Now he’s obviously having second thoughts and he decides to offer a written reply five days after the publication of the story and two days after his interview in AKKKS. This was a minimum to expect from the head of the national airline by its workers and the country to be more cautious in his public confession of bankruptcy of the national insinuations.

The fact remains that any business enterprise that is keeping a cumulative loss of rs 73 billion and liabilities of Rs 71 billion with a running loss of rs 12 billion per year can not be declared solvent by any stretch of imagination.

As for fulfilling its financial obligations MD PIA is reminded that actually people of Pakistan are doing that as the government continue to provide long term and short term loans even for interest payment 
(09h06tn).
TOP
What a reputation of PIA in Arab country?
UAE denies Landing Rights to PIA flights first time causing embarrassment to state-run national carrier
KARACHI, SINDH: [SindhWeek.Com Report] The Dubai Civil Aviation Authority refused to
give landing rights to PIA for operating flights to Dubai from Sialkot international airport,
located 80 km from here, without mentioning any specific reason for the move.

PIA had planned to start direct flights between Sialkot and Dubai from November 30 and
had applied for landing rights a month earlier in line with the agreement between the
governments of Pakistan and the United Arab Emirates. "This is outrageous. It appears to be
a pressure tactic of the Dubai CAA to get more concessions for its airline from the Pakistan government," said a senior official of PIA who did not want to be named.

"The bilateral air services agreement between Pakistan and the UAE allows the designated
airlines of Pakistan to operate unlimited flights from any point in Pakistan to Dubai. Similarly,
the designated airlines of the UAE are entitled to operate unlimited flights between Dubai
and Karachi," the official said.

"Emirates has never been refused permission by Pakistan's Civil Aviation Authority to increase
its flights to Karachi as provided for in the bilateral air services agreement. "Six other
airlines of the UAE have never violated the bilateral air services agreement and have always granted permission for flights to all airlines of Pakistan," the official said.

PIA, which has run up huge losses over the past few years, has registered a protest with the UAE government and decided to take up matter through the Pakistan government
-(PTI09l02ge).
 

PIA accumulated losses Rs72.35 billion by Dec 2008 against Rs37.16 billion registered by Dec 2007; Auditor General's report in National Assembly
ISLAMABAD, PAK: [SindhWeek.Com Report] Losses suffered by the Pakistan International Airlines increased by almost 204 per cent to Rs39.88 billion in the 2008 financial year.

According to a report submitted by the auditor general to the National Assembly’s Public Accounts Committee, PIA’s losses in the financial year 2007 were Rs13.07 billion and its accumulated losses reached Rs72.35 billion by December 2008 against Rs37.16 billion registered by December 2007. It said the magnitude of the loss depicted an alarming
situation which warranted a review of the working of the corporation.

The report said that PIA’s assets as on December 31, 2008 were Rs15.03 billion and the situation portrayed serious doubts over the airline’s ability to meet its short-term debt obligations. Responding to the findings of the AG report, PIA spokesman Syed Sultan Hasan said that the situation would improve in the current financial year because the management had taken measures to address the issue of rising losses.

‘We have initiated a new marketing strategy and measures have been taken to curtail operational expenses without compromising on quality,’ he said, adding that serious financial burden on the corporation was debt servicing and high cost of fuel.

The AG report also said that the net revenues of PIA increased by 26.6 per cent to Rs89.20 billion in 2008 against Rs70.48 billion in 2007, but its operating expenses rose by 58 per cent compared to previous year’s Rs122.41 billion.

The auditors pointed out that the major reason for PIA’s losses was loose internal controls
and ‘not high cost of fuel only’. The report pointed out 29 audit objections causing losses of Rs4.36 billion, including a loss of $23.58 million or Rs1.43 billion because of unauthorized and irregular expenditure on overhaul of engines.

The objections included irregular appointment of principal and chief instructor at the PIA training centre and the auditor general also objected to non-production of auditable record. The AG report also objected to the operations of Skyrooms Pvt Ltd, a subsidiary of PIA.

Skyrooms owns and manages airport hotels in Karachi and its accumulated losses had reached Rs90.99 million by December 2008, whereas the paid-up capital of the company was only
Rs40 million, leaving a negative shareholders equity of Rs50.99 million
(09j0000).


PIA did not spare even Hajj pilgrims? CCP fined
PIA Rs 10 million for over charging Hajj fares in 2008

KARACHI, SINDH: [SindhWeek.Com Report] A committee of the Competition Commission of Pakistan on Nov 20 fined Pakistan International Airlines (PIA) Rs10 million for abusing its dominant position by excessively increasing Haj fares in 2008.

The committee, comprising Ms Maleeha Mimi Bangash and Dr Joseph Wilson, also ordered PIA to make refund within two months to its passengers who had purchased tickets and used them during Haj last year. Calculating the refund on the basis of fares charged by other airlines
on the same or equivalent routes, the CCP observed PIA had charged much higher fares. ‘The PIA shall also work out a mechanism to identify such Haj pilgrims and ensure that refund is available,’ the CCP order said.

The CCP had ordered an inquiry on the basis of media reports that the national carrier had charged exorbitant Haj fares. After the inquiry, the CCP found that PIA had unreasonably increased Haj fares by more than 80 per cent from Rs38,500 to Rs70,000 for southern region and from Rs46,200 to Rs85,000 for northern region. The action against the airline has been taken for violation of Section 3(3)(a) of the Competition Ordinance. After the inquiry report, a show-cause notice was issued to PIA on May 5 this year and two hearings were held in June and September 2009.

The CCP said it had imposed a token penalty of Rs10 million, taking a lenient view in line with its stance of promoting good business practices in the market (09k21dn)k
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PIA losses cross over Rs 40 billion in 2008; NA told

ISLAMABAD, PAK: [SindhWeek.Com Report] The Pakistan International Airlines (PIA) has suffered accumulated losses of over Rs 40 billion since January 2008, with losses of Rs 5.4 billion in the first six months of 2009.

Briefing the National Assembly on Oct 16, 2009, the Defence Ministry said the PIA’s losses in 2008 amounted to Rs 35.88 billion. Defence Minister Ahmed Mukhtar said there were no plans to privatize the national airline despite the losses.

He said PIA was assessing various aircraft for induction into its fleet and would consider other options for tapping financial resources after finalizing the type of aircraft (09j17dt).
TOP


Corruption in PIA; Letter in The Post
SIALKOT, PUNJAB; [SindhWeek.Com Report] A leading English daily The Post (Aug 06) has published letter to the editor headlined; "PIA Corruption" by Shahzad Khalil of Sialkot. He writes:

"The PIA MD has stated on a private TV channel that the national airline is technically bankrupt and this state of affairs started in 2000. He has conveniently forgotten the fact that during 2002, he was appointed briefly as GM Traffic for six months and then Director till his removal in 2003 on instructions of PM Jamali. He was involved in the controversial B777 purchase deal, as a close confidant of MD PIAC. It is also a fact that he was found guilty of financial impropriety during an investigation conducted by AVM Mushaf Mir for his alleged involvement in irregular appointments of pilots during Benazir’s previous tenure, when he served as GM Central Control for 8 months. As for his background, his name is involved in 55 acres Kidney Hill land scam controversy, apart from other alleged scandals.

Despite this background he has been nominated to serve as MD PIAC, at this critical juncture. The airline is in shambles. He has further burdened PIA with over 6000 more employees. As if that was not enough, the MD has recruited another batch of 80 pilots, when almost 66 pilots recruited in 2006 have yet to complete their training and be operational. PIA schedules have been drastically slashed for a variety of reasons and both its fleet and pilots remain under utilized. An airline owned by government of a country, which cannot provide electricity, water, health and education for lack of funds, wants to buy more aircrafts, while its present fleet remains under- utilized. Just does not make sense" 
(09h06tp).
 

"No fond memories of PIA": Letter in Dawn
KARACHI, SINDH: [SindhWeek.Com Report] A leading English daily "Dawn" has printed a letter to the editor headlined: "No fond memories of PIA" (Aug 06, 2009) by Vasseh Ahmed, Karachi. He writes:
"JUST like the incoherent and rather confusing policies of the Pakistan government, the national flag carrier’s service baffles me equally. At a time when customer retention is crucial for the airline, it continues to disappoint on every conceivable front.

My relationship with PIA began 24 years ago, and while I have used the airline many, many times in those days, I can assure you that I have had no fond moments to look back on. During my childhood, I would travel on the airline as a non-revenue passenger, and while the airport staff would mistreat me because of this, I had to live with it because tickets were cheap.

Today, I am a fully paying revenue passenger, and committed the horrendous error of flying PIA from Karachi to London and back. To begin with, I was perplexed to find that while major airlines such as Emirates and Etihad are using Boeing 777 aircraft on this sector (Emirates, in fact, is now using the world’s largest commercial jet, the Airbus A380, on this route), our airline has decided to downgrade it to an Airbus A310.

Travelling for eight hours in a cramped seat for someone who is 6ft 2” is difficult enough at the best of times, but the airline staff managed to, somehow, make it even worse. Despite requesting a seat with extra legroom, and being assured that I would, indeed, be given such a seat by the agent at the check-in desk, I was put in a regular seat. In itself, this is not terrible, but to add insult to injury, the seat was actually broken from one side, and the recliner was also not functioning. Sleeping on the flight was, therefore, out of the question.

Staying painfully awake, I decided to browse through the in-flight entertainment, and to my amusement there was just one channel playing some random Pakistani drama, and the other 20 channels on the flight were inactive. There were no audio channels either. Staring around the cabin, I decided to call the steward to ask for a blanket, because I was feeling cold. As he arrived with a rather grumpy look on his face, he informed me that between the four people sitting in my row, only one quilt would be given, because there was a shortage.

The horror did not end there. Soon after, dinner was served. I had pre-booked a fish meal and instead I was served uncooked rice with chicken. Out of the four bathrooms available in the ‘pleasant’ smelling economy class, only one was functional, and that too without any supply of water. Once fellow passengers had rendered even that one inoperative after throwing tissues down the toilet, the cabin crew decided to open one of the “non-functional” bathrooms. All of a sudden it was working! Similar to the other bathrooms, however, it did not have any supply of water either.

Somehow, the journey drew to a close and the announcement of landing in Karachi was made. The cabin crew continued the announcement by saying that if any passenger wanted to make any comments about the service, the comment card was in the pocket of the seat in front of them. I immediately searched for it and it wasn’t there! I asked the passengers sitting next to me if they could check and they didn’t have one either.

I don’t think I have any way of concluding my story apart from saying that I hope never to make the mistake of flying PIA ever again. I would recommend fellow passengers to do the same. Besides, tickets on the other airlines are far cheaper! -VASSEH AHMED,Karachi" 
(09h06dn).
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Some PIA's officers who burnt candle
 at both ends in national Airlines, PIA

Ex-Chairman, PIA Ahmed Saeed Chaudhry: A most inefficient person, class-mate of Gen. Musharraf who run Airlines like his "shoe-factory"
Former chairman Ahmed Saeed Chaudhry who was known as class fellow of General Musharraf in Army College remained chairman, PIA for the period of 04 years. He was the most unsuitable person for Airlines as he had experience of running shoe-factory. However, he tried unsuccessfully to run the Airlines on the pattern of his shoe-factory. Consequently, he pushed the airlines to disaster.

Once a PIA driver went to the chairman, PIA requesting him to send him on Umrah. (Chairman has his own quota and powers to send any employee on Umrah, this demand was common and nothing was extra-ordinary in it). He asked him being a driver what was his salary, he replied: about Rs 15,000/-pm. Chairman Chaudhry replied: I pay only Rs 1500-2000/- per month to my a driver in my factory (Shoe-factory). The driver replied him: Sir, there was difference between running an Airlines and Shoe-Factory. After a few seconds, driver was out from the Chairman's office.

Ahmed Saeed Chaudhry by favouring his own people, appointed a gang of consultants unnecessarily by paying each at least RS 03 lakhs per month in Public Relations, Cargo, Flight Kitchen and IT (Director with high salary) - all became burden on national carrier.

When PIA acquired Boeing 777 aircraft from USA, no preparations were made by PIA despite having sufficient time. Initially, PIA pilots were not trained in advance for this purpose resulting in  lot of delays and other problems on account of shortage of pilots and other trained technical staff. PIA intended to operate direct flights to USA with the said aircraft and huge amount on such advertisements were spent without checking from USA Govt that they were allowing such direct flights to PIA or not (Karachi to New York and other destinations in USA). But USA Govt refused to give such permission which resulted huge losses to PIA as Boeing 777 Long Range (LR) were purchased only for such flights. This was another example of inefficiency of Ahmed Saeed Chaudhry appointed by general Musharraf.

Before purchasing Boeing 777 aircraft, Board of Directors had decided to purchase modern aircraft Airbus A-340 but next day after the intervention of Islamabad rulers (Gen Musharraf), the decision was changed. According to reliable sources and news reports, high-level "Commission" were obtained on the secret deal with Boeing aircraft for switching over the decision.

Chaudhry Saeed had appointed about 73 MBAs but paid them initially huge amount of Rs 35,000 per month. Later, when one friend of Chaudhry advised him to raise the salary of one MBA, Chaudhry increased salary on the basis of their so-called performance as maxim Rs 10, 000/-per month to all the MBAs. No such increase in salary was ever witnessed before in national airlines. Consequently a new MBA having only one year experience was drawing Rs 45,000/- per month whereas old officers who served the Airlines for about 25 - 30 years, were hardly reached to the said ceiling. This created ill-will among the old officers / staff as the MBAs with lack of experience,  were not as good as the PIA officers with 25/30 years experiences were (performance-wise).

PIA Flight Kitchen, Karachi was in profit for years but Ahmed Saeed privatized it in orders to get kick backs and favor his friends. The projects which are in loss are generally being privatized but this project which was in profit for years, was 'Privatized". This was a unique example of its kind.
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Ex-Chairman Tariq Kermani: 'King of Corruption' -
Personal friend of ex-Prime Minister Shaukat Aziz who was main culprit pushing PIA to 'financial death'

Tariq Karmani: PIA-Loot Thaa Maal
Another example was appointment of Tariq Kermani as chairman, PIA (who took over from Ahmed Saeed Chaudhry) on April 16, 2005. He was later removed much before completing his normal tenure of three years in PIA. However, it has been reported, he got his salary for three years in advance and to save his income tax, he managed
to get total payment in Dubai / London. He

was drawing almost Rs 2.7 million per month as salary in addition to other benefits and thus became highly drawn salary man in Pakistan's history. Showing favoritism & nepotism, he appointed his men at the

exorbitant salary which ranges from 03 lakhs to 2.4 million per month. Please see his own statement (English daily Dawn) which he personally gave to the high-powered
 Public Accounts Committee of National Assembly in which

he admitted to re-appoint a PIA officer (Naim Saadiq) by paying him Rs 07 million for quarter year.

Mr Kermani appointed his friend Usmani in Finance and as admitted by him, he was
paying to Rs 07 lakhs per month to him as he claimed in the Press that PIA Finance Officers were not ready to cooperate with him by providing him correct financial figures / data on time. Just imagine, how can this be possible. This was so-called "Justification" to appoint his one favorite. Another over-age Usmani was appointed by him as Director Commercial
in Marketing by creating new posts with huge salary and other benefits who was more
than 55 years old and also sick man. For the appointment of the said Director, the
maximum age required was 40 in advertisement but he got special relaxation for him as
he came to PIA only to get his treatment.

Therefore, his performance was very poor or in other words almost ZERO. He sent an official email to all PIA sections asking them not to send him emails as he is unable to go through emails due to his weak eyesight. This is on record which can not be denied.

Mr Kermani spent a huge amount of about 32 crores of rupees on renovation of Directors' room. In return, the contractor which he brought from his previous organization PSO, constructed a two-story bungalow for his daughter in Defence, Karachi. It was furnished -
all was free. However, he could not implement his plan to install a lift in PIA Head Office, Karachi which would bring his car to FIRST FLOOR where his office was located. He was doing all this in the name of senior citizens but hue and cry made in press, had prevent
him to implement his project. Thus, he planned to grab more money from PIA by installing heavy lift to lift his car but miserably failed.

Mr Kermani also tried his hard to insult and humiliated all former employees of PIA to discourage them from visiting Head Office in order to show them his "Dab-Dabaa",
whereas such people were already visiting  RARELY in view of their preoccupations
outside. The security passes to such ex-employees were issued after wait of long time at Gate and for a particular Section / Floor. At Head Office Reception (Utility Gate), there was no arrangements to sit for them If any one found in another Section / Floor for any valid reason, he had to face insult and humiliation from the hands of Security people without asking them any clarification who claimed they had such orders from high-ups of PIA.
There were so many such examples. A young man belonging to some Bank was found
on another floor. He was publically & physically mishandled by Security men at the Gate
of Head Office at office-closing time. The story of an eye-witness printed in the shape of Letter to the Editor in a leading national English daily Dawn.

Not only this but Tariq Kermani was so inefficient and careless that 25-member countries
of European Union (EU) imposed ban on PIA's 35 out of 42 aircraft not to enter into their space being unsafe & insecure. This became fatal to PIA's future as PIA's reputation was highly put on stake. Now it is proved, he knew about the ban in advance but he did nothing to save airlines from such disaster. The ban still continues for the last 8-9 months and PIA is suffering high losses, above all "Loss of Reputation" which is must for any international airlines. This was "Criminal Negligence" on part of Tariq Kermani but he left the airlines "Unhurt."

Mr Tariq Kermani was so powerful that when after his removal from PIA, his name was
put on Exit Control List (ECL) - maintained by Interior Ministry, Govt of Pakistan but next day, his name was surprisingly removed from the list as per press reports.

Strangely, Tanvir Ahmed, Defence Secretary of Parliamentary Affairs told Senate (Upper House) that we have "inquired" about alleged irregularities of Tariq Kermani but do not
find any thing against him. It was fact no formal inquiry was conducted against Tariq Kermani but obviously to save his skin, such misleading statement was given in the
Senate. What a shame!!

Chairman Kermani's salary package:

 
ISLAMABAD: [SindhWeek.Com Report] Defence Minister Rao Sikandar Iqbal shared with senators the salary package of PIA chairman Tariq Kirmani, which showed that Kirmani was the most expensive employee of Shaukat Aziz government when PIA was crumbling under Rs 4.1 billion domestic and $ 454 million foreign loans. Defence Minister told the Upper House during the question hour that PIA has also borrowed over $300 million from the Citibank to sustain its operations.
 
 
 
But on the other hand after going through the details of package given to Kirmani, it does not look PIA was running in losses or it owed massive loans to both local and foreign banks.
 
 
 
His basic salary is Rs 322,000 per month and he entitled 26 perks and allowances - including drivers, medical bills, traveling, free utilities, insurance for members of family, two cars and furniture making him one of the most expensive employees of PIA running on borrowed loans.
 
 
 
Kirmani, in addition to salary is getting Rs 155,000 as house rent, 10 percent of basic salary as entertainment allowance, 20 percent of annual basic salary as leave fare assistance, Rs 25 per month as cost of living allowance, Rs 200 as dearness allowance, Rs 200 technical allowance per month, Rs 4,000 servant allowance, two company owned and maintained cars (1600CC, 1300CC).
   
 
He has two official drivers and each is given Rs 6000 per month by PIA. There is no limit on the fuel expenses; PIA also pays the bill of domestic electricity, phone, mobile phone, domestic gas, water and conservancy, reimbursement of entrance fee of a club and monthly subscription for two approved clubs.
   
 
He is entitled to have four air conditioners from PIA account, refrigerator, deep freezer, cooking range and generator and has the right to get them replaced.
   
 
Kirmani is also entitled to performance-based reward equivalent to four basic salaries per annum (Rs 1.3 million). He will also get Rs 25,000 in the name of painting of his house. As far as furnishing of his residence is concerned, he is entitled to fixed amount of Rs 150,000 as residential furnishing; minor repairs and maintenance of residence involving actual expenditures, security cover at all times both while mobile and at residence, medical benefits include full treatment for parents, self, spouse and children. On voluntary retirement before completion of term of service, he will get one month gross salary of Rs 330,000 for each year of service with maximum of 20 months salary. When he attains the age of 60, he will be entitled to 30 days gross salary for each year of service completed. He will also get pension. As he was MD Pakistan State Oil (PSO) before his elevation to PIA chairman, his new contract includes a clause that PSO will transfer all funds accumulated in respect of long term benefits of Tariq Kirmani to PIA, which will continue to maintain and manage these until his appointment at PIA. For the purpose of computation of period in respect of any benefit, his period of employment with PSO shall be added to his employment with PIA.
   
 
Defence Minister Rao Sikandar also told the House that on the other hand, PIA had taken a loan of Rs 4.1 billion from local banks to help PIA operate in the country.
   
 
Source: The News (August 3, 2006)
PIA's ex-Chairman Tariq Kermani was drawing salary more than salary of US ex-President George W. Bush
PARIS, FRANCE: [SindhWeek.Com Report] President George W. Bush of USA is drawing more salary among the presidents of all developed countries. His monthly salary is equivalent to 24,167 Euro per month (equivalent to Pakistani Rupees 17,33,360/-). Comparatively, less salary is of president of France. Other presidents are drawing salaries as under:

Germany 21,262 Euro; France from 8,000 to 9,000 Euro; Slovakia: 2,684 Euro. This was stated by largely circulated French newspaper Le Figaro while referring to the President House sources.

SindhWeek.Com adds: Tariq Kermani ex-chairman of PIA who was appointed by President General (r) Musharraf and was known as personal friend of prime minister Shaukat Aziz, was drawing salary of Rs 2.7 million rupees per month whereas President Bush's salary was Rs 1.7 million per month. Thus, Tariq Kermani despite being head of national airlines
of a poor country, was drawing salary more than salary of US President George W. Bush. What a shame!!
(71/61j3007)~


Highly corrupt Tariq Kermani looted PIA with both hands; Appointed as chairman, BoD, Southern Sui Gas by outgoing Prime Minister Shaukat Aziz...!!
KARACHI, SINDH: [SindhWeek.Com Report] Highly corrupt Tariq Kermani who headed PIA to the verge of death in the capacity of chairman, PIAC, was, again, "rewarded" by his friend - outgoing Prime Minister Shaukat Aziz with new assignment as chairman, Board of Directors, Southern Sui Gas Company - another financially sound organization.

This appointment has resulted shock to the members of civil society and they fear like PIA, Southern Sui Gas Company would also be turned into financially crippled - may be in short time of one or two years.
(51/61k2107)/
Updated: Nov 26, 2007.
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EX-DMD Engineering AVM Niaz: Another corrupt officer
Air Vice Marshal Niaz was appointed as Deputy Managing Director (Engineering) but during his almost three years period, he remained involved in high-level financial corruption. However, from engineering pointed of view, the national airlines, as per press reports, became unreliable & highly unsafe due to his negligence.

Abandoning flights at the time of take off, returning flights from midway and fire in aircraft (during flights) were common incidents. Consequently, he was finally removed. Since, he was very influential person, therefore, despite high-level protest and strike by PIA engineers, no action was taken against him.

 

EX-DMD Khurshid Anwar: 'Ph. D holder' in corruption:
During the regime of General Musharraf three Deputy Managing Directors (DMD) were working, with Chairman Ahmed Saeed. One was; Khurshid Anwar - one of the most corrupt executives, PIA had ever seen in its 59-year long history. He knew his job so he utilized his "ability" to loot the national carrier with both hands, particularly in his last tenure. He played vital role in bringing the Airlines to ruination.

It is undeniable fact, he had financial interests in one of the Travel Agency M/S Bukhari Travels (also one more in Islamabad), everyone knows, he used to go mostly out of way
to help M/S Bukhari Travels particularly in reservations of seats. This created ill-will among other travel agents who started to sell other airlines.

Consequently , PIA became financially crippled as Travel Agents tried to divert the business to other carriers. When he was removed, there was a story in an English daily The Nation (Sept 11) asking the DMD Khurshid Anwar by Ministry of Defence to resign or face high-level charges of financial irregularities / corruption. Consequently, he preferred to resign instead of facing charges because it was safe way for him to go out.

 

Ex-MD Arif Ali Khan Abbasi who observed favourtism on
basis of ethnicity, chauvinism in Pakistan International Airlines
KARACHI, SINDH: [SindhWeek.Com Report] In caretaker set up in Sindh, Arif Ali Khan Abbasi was appointed as minister against the quota of an Ethnic Group of Karachi. Mr Abbasi remained staunch supporter of ideas being propagated by MQM chief Altaf Hussain. When he was Managing Director of PIA - appointed by Ms Benazir Bhutto, the then prime minister. Mr Abbasi had physically attended the procession of Altaf Hussain, chief of MQM when he came from abroad and landed at Terminal One of Karachi Airport in 1990. According to an eye witness, Mr Abbasi despite being head of a very sensitive Govt Organization, PIA, which was controlled not less than by ministry of Defence, attended Altaf's procession and went on foot from Terminal One to Hotel Midway House )now defunct) , Star Gate Road, Karachi along with the procession. A news-item had appeared in Sindhi daily of Karachi Hilal-e-Pakistan in this regard but PIA 'contradicted' the news-item
at that time.

Mr Abbasi is said to be strong believer in ethnicity from the very beginning of his service in PIA. In 1981-82, he became officiating Director Public Affairs of PIA for only 25 days but during this short period, he promoted only juniors belonging to one ethnic group (Urdu speaking) and refused to promote a well known Sindhi writer who was not only senior to all but his qualifications as well as service record both were better compared to the promoted junior officers belonging to the said ethnic group. After a few days, Arif Abbasi was kicked out from PIA for openly supporting an ethnic group and observing discrimination to others.

Unfortunately, Arif Abbasi, any how managed to become Managing Director, PIA in 1990 appointed by ex-Prime Minister (PM) Ms Benazir Bhutto in her first tenure, with full powers when he brought "Sufarish" for Asif Zardari - spouse of PM Benazir Bhutto from his close friend namely Fauzi Ali Kazmi (Duty-Free Shops fame).

After becoming MD, PIA, his first job was to cancel the new appointment orders which were in pipeline relating to lower groups as most of them were Sindhis. However, they (Sindhis) were already a few working in the national airlines. During, his 09 month tenure in PIA, he turned the national airlines as haven for an ethnic group. He frequently promoted inefficient officers to the Directors and General Managers levels belonging to the said ethnic Group, out of turn, and victimized many deserving officers belonging to other ethnic groups.

In those days, prime minister Ms Benazir Bhutto had approved unprecedented high increase in salary of PIA employees. She had to personally announce the increase in a function to be organized in PIA. Since she was busy, therefore, Arif Abbasi was allowed to announce the increase but showing his dishonesty, he announced the salary increase without giving any credit or reference to the then Prime minister Ms Benazir Bhutto. Instead, he tried to take the whole credit to himself. However, knowing his intentions, ex-PM had kicked him out after 09 months of his service in PIA due to his ethnic chauvinism shown in national airlines.

Again, during the tenure of M. Nawaz Sharif, ex-prime minister, Mr Arif Abbasi was made MD, PIA on the demand of some pilots when PIA faced some financial crisis, but he was unsuccessful, therefore, he was again kicked out from PIA.

This time also, PIA employees were expecting so-called 'unprecedented increase' in their salary but Arif Abbasi was helpless as during his previous tenure, he betrayed Ms Benazir Bhutto and had taken credit of salary increased by her to his personal account but this time, he was fully exposed.
Nov 23-29, 2007.(61k2107)/
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Farooq Shah
EX-DMD, PIA: Syed Farooq H. Shah:
A highly corrupt officer who looted PIA mercilessly as Marketing head
Another DMD was Syed Farooq H. Shah who got his promotions, out of way in very important department i.e. Marketing which was not a easy job. As Director Marketing and later as Deputy Managing Director, he showed favoritism and started to send persons on foreign postings and also promoting them on the basis of his personal likings and disliking
instead of merit.

For example, his third wife Ms Malika Wyne was working in PIA who was on No. 60 in seniority list in Pay Group VIII in Marketing but any way he managed her promotion to Group IX whereas earlier she was also promoted from Group VII to Groups VIII with the courtesy of Farooq Shah. For this, he had to play with carriers of other deserving officers in Marketing by tampering their ACRs (Annual Confidential Reports).

Consequently, the officers working in Marketing which were backbone of any Airlines,
were in great distress and disheartening. Such attitude in long run proved detrimental to the financial health of the national airlines. Farooq Shah remained for long period in Karachi Booking Office (KBO) and was dealing with more than 2400 regular Travel Agents. It is reported that he earned millions of rupees by giving undue favor to some Travel Agents in his personal interst. It was an 'Open Secret.' So much so, whenever he was transferred from KBO, he used his influence to stop his transfer for long period. It is said if impartial inquiry
is made, it will prove his high-level financial corruption, may be not less than a billion of rupees.

Syed Farooq H. Shah was so powerful that he managed to send Aftab Solangi - an inefficient officer (generally known his pimp) to Paris on foreign posting for total period of more than 10 years. He was the same person who used to "Co-ordinate" with Travel Agents of Karachi when Farooq Shah was General Manager at Karachi Booking Office (KBO) and later Director Marketing. For this he (Farooq Shah) had to play a game and service of one senior officer in Pay Group VIII in Marketing, Mumtaz Rajpar who was PIA Manager, Paris got terminated on fake allegations by Ahmed Saeed Chaudhry, Chairman, PIAC that he was abusing to the Chairman in informal meetings in order to accommodate Aftab Solangi. This drama he staged to settle Aftab Solangi in Paris where he  (Solangi) had long personal business connections there including one restaurant.

Farooq Shah himself was real son of actress of old time Ms Raagni (originally belonging to Red Light Area of Gujranwala Town in Punjab) who later worked in Pakistani as well as Indian films (before Partition in 1947). She got 'married' multiple times. She died in Gulburg, Lahore in Feb 2007 at the age of 82 in dilapidated conditions but Syed Farooq H. Shah did not attend funeral of his real mother despite he was in Pakistan. What a shame!! The question is a person who is not sincere to his real mother and did not attend her funeral, how could be sincere to the national airlines?

 

Sick Airline, PIA appoints Director MIS with
Rs 6,25,000  pm salary on the 'Sufarish' of President
Financially sick PIA - the national airlines has recently appointed a Director Management Information System (MIS) (Mr Zafar) by paying him exorbitant salary of Rs 6, 25,000/- per month. It is reliably learnt that he has been appointed on the "Sufarish" of President House.

It may be pointed out that PIA's monthly deficit is Rs one billion totaling Rs 33 billions (Sept '07) as per recent press conference of chairman, PIA Mr Zafar A. Khan.
 

PIA flights highly insecure; cost on training compromised; Pilot tells Dawn
KARACHI: After a recent crash of 43-year old of PIA's Fokker Friendship F-27 aircraft on July 10 at Multan immediate after take off killing all 45 persons on board, a source told English daily Dawn (Jul 12, 2006) that 'Recently, PIA's training standard for pilots had been under doubt.'

A pilot who wanted on remain anonymous, said :"What quality of training could be expected when the cost on training is compromised."
(31g1206):
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Top Management of PIA, CAA responsible for
EU ban; Deficit of PIA is Rs 14 million per day...!!

European  Union (EU) ban crippled reputation of PIA, through out world
ISLAMABAD, PAK: [SindhWeek.Com Report] The Civil Aviation Authority (CAA) and Pakistan International Airlines (PIA) on Oct 31 admitted before the Senate Standing Committee on Defence that their top management was responsible for the European Union (EU) ban on PIA flights.

“Yes, it is true that our bosses did not respond to letters of the EU for months regarding their concerns over safety standards and airworthiness of our planes. Several issues could have been resolved at the initial stages had they been handled properly,” said CAA Director General Farooq Rehmatullah while responding to queries of the committee members.
The committee met at Parliament House for a briefing on Civil Aviation Policy and steps taken to remove the EU ban on PIA flights. Nisar A Memon chaired the meeting. The Multan Fokker crash report was also presented before the committee with a request to the senators not to make it public, being a confidential document.

Rehmatullah said the CAA reviewed the situation after the EU ban and removed the then airworthiness director after in-house investigations. The PIA, however, conducted a damage assessment report of the losses suffered because of the ban, but did not fix the responsibility of this failure.

The committee expressed its displeasure over the slack attitude of the PIA management and the Ministry of Defence, and sought a copy of the damage assessment report within a week. “Somebody should be fixed up for this debacle, otherwise this tradition will continue in future,” said Senator Dilawar Abbas. The committee also expressed its displeasure over the lack of coordination between the departments concerned in preparation for the Civil Aviation Policy of 2007 and the delay in presenting it to the Cabinet for approval. The committee sternly directed CAA officials to get the policy approved and adopted by the end of year. “Since it’s the 2007 policy, it must be adopted this year,” said Memon.

The committee also expressed its concern over the ever-increasing fares of PIA and recommended a decrease in economy class fares.

Earlier, Rehmatullah briefing the committee, said the Civil Aviation Policy was in the final stage and being prepared in consultation with all the stakeholders. “We are also encouraging the private sector’s participation in line with the government policy, but at the same time we want to protect our national flag carrier and give a fair chance to all the competitors by pursuing an open sky policy with special focus on passenger safety and facilitation,” he added. He said they were restructuring the organisation to make it more effective and efficient. “We had a Rs 4 billion budget for improvement of facilities last year, but could only utilise Rs 1.2 billion. This year we have a Rs 9 billion budget and are on target. We have utilised Rs 3 billion so far,” he added.

Defence Secretary Kamran Rasool interrupted him at this point and said that they also wanted to protect the PIA but it was incurring losses of Rs 14 million per day, which was a major cause of concern. “We want to protect the PIA, but at the same time we cannot deny a fair chance of competition to foreign airlines. Cash-rich airlines of the Middle East are aggressively pursuing us for rights in Pakistan,” he added. PIA Deputy Managing Director Umer Farooq told the committee that the airlines - in consultation with the CAA and other relevant departments - had prepared a recovery plan and were getting a positive response from the EU on certain issues.

“As far as the issue of refusal of direct flights to the US is concerned, it is more a political issue than technical. We have removed almost all security concerns of the US authorities and have approached our ambassador in the US to take up the issue with the US government,” he added (39k0107).

NOTE: Later, EU lifted the ban after period of about 09/10 months leaving airlines into deep financial crisis as PIA's credibility was internationally ruined - ed.

 

Scandal surfaces in purchase of PIA's Boeing 777 aircraft. Purchase made through newly formed
fake company instead of Boeing direct: Auditor General's raises serious objections in the report
ISLAMABAD, PAK: [SindhWeek.Com Report] Auditor General has submitted a report to the President General Musharraf in which they have confirmed about the suspicious purchase-deal of three Boeing 777 aircraft at the cost of US dollars 479 million.

These aircraft were acquired during the tenure of ex-chairman, PIA, Ahmed Saeed Chaudhry in the year 2003 against the directives of PIA's Board of Directors to purchase aircraft from the Boeing Company direct. Nevertheless, the aircraft were purchased from a company which was formed only 11 days ago and its capital was less than US dollars 250 million. The Auditor General was, obviously not satisfied with the clarifications given by the PIA administration on the subject.

PIA's Board of Directors in its 266th meeting held on 14th October 2002 had decided to purchase the said aircraft from the Boeing Company direct. However, the Board had authorized Managing Director, PIA to negotiate and settle down all related matters. But PIA Management, instead of dealing the matter with the Boeing Co., direct, they had entered into lease for 12 years with M/s Taxila Company on December 15, 2003 which was formed only 11 days ago.

The Auditor's had raised the following points:
01] M/S Taxila Company has not furnished any guarantee to transfer the ownership of aircraft to PIA after completing lease period of 12 years.

02]. If the M/S Taxila Company eliminates before the completing lease period of 12 years, the PIA would face lot of serious problems about the ownership of the aircraft.

03] Why PIA aircraft were leased through M/S Taxila Company instead of Boeing Company direct? If lease was unavoidable, why other leasing companies particularly ILFC, GECAS,
CIT Group and Boeing Capital Corporation were not invited?
(71j3107).
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NOTE: Who will catch above-mentioned 'big fishes' who ruined a well-established
55-year old national airlines? Will some one tell us, how?  If you want to share us reports, please send us information confidentially for publication in next issue of SindhWeek.Com. However, your name will not be disclosed in any case if desired.
Our email address is:
sindhweek@ymail.com - ed.
NOTE: MORE DETAILS TO FOLLOW.
Last Update: January 02, 2010

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