PIA Audit Report Makes Interesting Reading

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Abbas Ali
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PIA Audit Report Makes Interesting Reading

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PIA audit report makes interesting reading

By: Irfan Bukhari | Published: November 15, 2010

ISLAMABAD:
The mismanagement of public sector enterprises can be easily ascertained from the fact that PIA, having accumulated losses of Rs 80 billion and incurred liabilities of Rs 144 billion, has failed to recover Rs 75.557 million, by its own admission, from a government organisation despite the passage of six years.

The audit report 2009-10 of PIA makes for interesting reading and reveals that PIA’s Revenue Accounting Department (Cargo) is owed the huge sum of Rs 175.121 million by the Pakistan Post Office since the year 2004, in the account head of Foreign Mail and Cargo Transportation. The report adds that PIA officials denied such heavy losses

They claimed during discussions with audit officials on December 21- 22, 2009, that Pakistan Post Office had honoured the majority of its dues and the outstanding amount in September 2009 was only Rs 48.939 million. The report points out that an amount of Rs 26.618 million, as of December 31, 2008, was also owed by the Ministry of Religious Affairs.

The expense was incurred in the transportation of Hajis since 2006. The Auditor General of Pakistan points out that despite a period of three years elapsing, the management of PIA could not take timely measures to fulfill their dues within the credit limit, which is 60 days. “Despite heavy borrowing from DFIs and Banks at a high markup for smooth running of operations, the management did not take adequate steps to recover its longstanding dues,” says the audit report.

“With regard to recovery from the Ministry of Religious Affairs, the PIA management informed officials that the facility was extended on the instructions of the federal minister for religious affairs at the time; however, they did not receive any payment despite sustained efforts,” tells the audit report.

It is pertinent to mention that PIA in its five-year survival plan requested the government to write-off of its losses of $ 1.7 billion. The plan has blamed ‘bad policies of the past’ for accumulated losses of Rs 80 billion and liabilities of Rs 144 billion.

The audit report 2009-10 also points out PIA suffered losses of Rs 101.405 million while hiring unnecessary staff and violating sanctioned personnel levels. “In PIA, random sampling revealed that there were 147 employees, at two offices and one station, posted in excess of the approved Human Resource Budget (HRB). This resulted in the additional financial burden of Rs 101.405 million from January 2007 to April 2009 on account of salary and allowances,” the audit report indicates.

PIA suffered losses of Rs 93.343 million due to irregular appointments/ promotion of officers on contract and subsequent assignment on a permanent basis. The report also alludes to PIA’s lackluster effort to recover Rs 24.860 million from various sales agents.

The audit officials were also frustrated by PIA’ information technology department, which was reluctant to submit records for examination. “The audit party issued 27 requisitions to the management in July 2009 to August 2009. However, despite written reminders, only partial records were made available,” says the report.

Source: pakistantoday.com.pk
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