ISLAMABAD - The Pakistan International Airline Corporation Limited on Monday requested the Supreme Court to initiate a contempt of court proceeding against former chief financial officer Nayyar Hayat for disobeying the orders and submitting false, frivolous and misleading facts.
The national flag carrier also requested the top court for lifting the ban on the fresh recruitments to fill the vacant operational positions.
The former Chief Executive Officer (CEO) Rasool Cyan of national flag carrier also requested the top court to issue orders for removal of his name from Exit Control List (ECL).
Advocate Naeem Bukhari filed three separate applications in Supreme Court in a suo motu case regarding the selling of national assets at throwaway prices including Pakistan International Airline (PIA).
The PIACL stated that Hayat was removed as Chief Financial Officer (CFO) in January 2016 by the Board of Directors (BoD) for a fraudulent transaction of accessing provident fund for ongoing expenses in violation of the rules.
It added that in compliance with the top court’s order of PIA’s special audit for the period 2008-2017, all the chiefs were communicated to provide the required information and records.
Numerous reminders were issued by Director Commercial Audit but provision of records was not speedily forthcoming and also not up to the mark after which specific departments were identified including the Finance Department of PIACL which were submitting partial records.
“Moreover, ‘surety/undertaking’ as required by the audit team was still not submitted & remained pending at the end of the then Chief Financial Officer (Nayyar Hayat), whereas all other chiefs & direct reporting divisional heads had submitted the surety/undertaking on the instructions of the Honourable Supreme Court of Pakistan,” the application stated.
“In order to hide his incompetence and mala fide, delays in submission of requisite data and information to the audit team, an alarming activity was undertaken by the CFO, in the form of an unionised letter from the officers under his supervision was written to the Board Audit Committee.
Reportedly, the officers were coerced to sign this letter,” it added
It has been stated that two requisitions in outstanding records were stated to be still pending which are related to the show cause notice issued to Nayyar Hayat.
“The audit report commissioned by the Supreme Court has identified irregular and illegal expenditures amounting to Rs816 billion under the watch of Nayyar Hayat as CFO. This is a clear indictment of his professional work,” the application added.
Hayat had reassigned as Chief Special Projects on August 16, 2018 and
assured he will continue to provide the information pertaining to finance department to the government auditor in compliance with top court’s order.
He (Hayat) has also not complied with the same instructions of the then President & CEO.”
“The process for the closure of route and its studies were started at the time when Nayyar Hayat was holding the charge of acting CEO. In fact most of the spade work on the route closure, its cost implications and future savings were completed and recommended by CFO PIACL, Nayyar Hayat who himself was a strong advocate for route closure and is on record supporting the notion. The route closure minutes were also routed through the CFO who recommended the same to CLO and CEO for approval.”
In another application regarding lifting of ban on recruitment, the PIACL stated that the operations of the company are suffering due to lack of critical skill set available internally.
It assured that all hiring would be carried out on merit with conforming the approved human resource budget and on market rates. The application also requested the top court for permission of renewal of contractual employees.
Cyan in his application stated that former and current MDs and chairmen have been allowed by this court to travel abroad.
Cyan stated that he has already deposited Rs2.3 million with PIA being the cost of passengers who had been taken by PIA on the inaugural Air Safari Trip to promote the flight for additional revenues despite the passengers were selected by Commercial Department.
Cyan stated that he has to attend his property matter in US further undertaking that he will appear within three days of notice by the top court as required by the auditors.
He requested the top court for deletion of his name from ECL. The top court on September 3, 2018 had directed the federal government for necessary steps to appoint a new CEO of PIA on merit.
SYED SABEEHUL HUSSNAIN