Supreme Court Sends Appointment of CEO PIA Case to NAB

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Supreme Court Sends Appointment of CEO PIA Case to NAB

Post by Abbas Ali »

Supreme Court has sent the case of the appointment of Dr. Musharraf Rasool Cyan as CEO PIA to National Accountability Bureau (NAB).

NAB has been directed to investigate appointment, salary and perks of airline's CEO.

Salary of CEO PIA is PKR 1,400,000/-, the court was informed.

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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

Post by Abbas Ali »

The appointment of CEO PIA was discussed during proceedings at the Supreme Court today. Rules/regulations were not followed in the appointment, says the court.

The court remarked that the CEO misguided the court about his salary. The court was informed that salary is PKR 1,400,000/- but the actual salary is PKR 2,000,000/-











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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

Post by Abbas Ali »

According to news sources, PIA finance department is pressurized to issue 4.4 million rupees check to lawyer representing CEO PIA at the Supreme Court of Pakistan.

Unnamed PIA officers say that the court had told CEO PIA to pay lawyer's fee from his own pocket for case(s) against him.

















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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

Post by uzkt01 »

Looks like staff Mafias have again united against the CEO.
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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

Post by Abbas Ali »

According to PIA clarification, lawyer fee for cases against the airline will be paid by the airline. Lawyer fee for cases against CEO PIA will be paid by CEO.



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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

Post by Abbas Ali »

Today, the Supreme Court remarked:

Possibility of nepotism in appointment of Musharraf Rasool Cyan will be reviewed.

Islamabad High Court has been directed to give judgement on the appointment of CEO PIA within two weeks.

New federal cabinet should review appointment of CEO PIA.

NAB should complete its investigation on appointment of CEO PIA and present report.

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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

Post by Abbas Ali »

NAB probing irregularities in PIA CEO’s appointment

ISLAMABAD:
While the National Accountability Bureau (NAB) is probing the appointment of Pakistan International Airline (PIA) Chief Executive Officer (CEO) Musharraf Rasool Cyan, the Aviation Division has informed the cabinet that the appointment was made as per all applicable laws.

In a summary sent to the Cabinet Division, “a copy of which is available with The News”, the department defended Dr Cyan’s appointment claiming that the US educated economist possessed the requisite qualifications and experience as per the terms of the advertisement, at the time of his appointment.

“Aviation Division is of the view that Musharraf Rasool Cyan was appointed as CEO, PIA after observing the applicable laws, including the Companies Act, 2017, Public Sector Companies (Corporate Governance) Rules 2013 (as amended in 2017),” says the summary.

A spokesman for the NAB Nawazish Ali Khan Asim said the Bureau is probing the case as per the direction of the Supreme Court of Pakistan. He said the case is at the initial stages and details would be submitted in the court once the complaint verification process is complete.

Supreme Court of Pakistan has taken suo motu notice of various issues pertaining to selling of national assets, including Pakistan International Airlines (PIA) in Human Rights Case No11827-S/2018.

After the formation of PTI government, the new cabinet will take up the issue of PIA including the appointment of its CEO as per the orders of the Supreme Court. Despite the PML-N government’s intention to privatise the loss making national flag-career, the current CEO Musharraf Rasool has been openly opposing the privatisation of the airline. He has said that PIA could be made a unique success-story of Pakistan if proper reforms are initiated under his vision.

In its summary sent to the Cabinet, the Aviation Department maintained that PIA had been subject to frequent change of senior management. “This makes things difficult for an organisation facing myriad of challenges on various accounts. During the past ten years, PIA has seen large number of Managing Directors/Chief Executive Officers,” it reads.

Between May 9, 2016 and the appointment of Musharraf Rasool Cyan as CEO PIACL on September 5, 2017, the Company was run by acting CEOs. Describing the appointment process, the summary says that the job of PIA CEO was advertised on May 20, 2017 after which 8 candidates had been shortlisted out of 11 applicants. Preliminary interviews were conducted in Chairman PIACL’s office on June 16, 2017. Subsequently, 3 candidates were further shortlisted and called for second round of interviews on July 3, 2017. However, no minutes of the proceedings of this shortlisting process are available.

A panel comprising Muhammad Irfan Elahi, Secretary Aviation Division/Chairman PIA and Tariq Mahmood Pasha, Secretary Economic Affairs Division/Member PIA Board interviewed the shortlisted candidates.

“Sardar Mehtab Ahmed Khan, Adviser to Prime Minister on Aviation was present during the interviews as observer. Although minutes of the proceedings of the second round of interviews were also not recorded but evaluation sheets signed by both the members are available,” says the summary.

Accordingly, a summary was initiated for approval of theFederal Cabinet for appointment of Musharraf Rasool Cyan as CEO of the PIACL after due authorisation by the Prime Minister.

The appointment was approved by the Cabinet in its meeting on August 22, 2017, on contract basis for a period of two years. Cyan assumed the charge of Chief Executive Officer PIACL on Sept 5, 2017. The advertisement required possession of a “graduate degree from a well reputed institute or such other professional qualification relating to the principal line of aviation business; or be a recognised businessman or professional with a postgraduate degree in business administration or public administration or finance or commerce or marketing or equivalent from any recognised institute”. In addition, the requisite experience was “minimum 25 years of working preferably in international airlines of repute with minimum of 10 years’ experience in a senior professional position in relevant professional areas including inter alia science, technology, finance, law, business, social sciences, etc.

“Musharraf Rasool Cyan possesses PhD in Economics from Georgia State University, USA. In addition he also has Masters Degree in Development Planning and Administration from University College, London, UK,” it reads.

The CEO has the experience of working as the Assistant Commissioner, Deputy Secretary and Chief Economist in Government of Pakistan. He also worked as Financial Management Expert in the Asian Development Bank. He also worked as Research Associate, Project Director and Assistant Professor at International Centre for Public Policy, Georgia State University, USA.

According to Aviation Department Cyan did not possess previous experience of the airlines industry, which was indicated as a preference, and not as a mandatory requirement, for applicants with airlines industry background.

When contacted by The News, Musharraf Rasool Cyan said he had not been contacted by NAB so far in connection with probe into his appointment. He claimed that after his appointment, significant improvements have been observed in PIA’s performance and safety ratings as acknowledged by the Safety Assessment of Foreign Aircraft (SAFA) index.

He claimed that PIA could be restored to its past glory if his vision is implemented and there would not be any need for privatisation of the airlines. Cyan had submitted a strategy paper titled “Reaching Higher Echelons – Revamp Strategy for PIA” outlining his vision for PIA’s turnaround before his appointment.

After taking over PIA, the CEO said he had cancelled expensive wet-leases of planes from other airlines and decreased the number of grounded company aircrafts through better maintenance. The PIA has also increased flight punctuality up to 90.5 percent in 2018 vs. 85 percent in 2017 and its excess baggage revenue went up by 20 percent. In October 2017 PIA was closed to be banned from flying over Europe for poor safety rating of 2.29 under the SAFA index. Had PIA crossed the threshold of 2.50 it would have been banned but now the safety index has improved to 1.33, which is PIA’s lowest SAFA rating since 2012. Also no serious violations have been reported on any PIA aircraft since April 2018.

He said the PIA kitchen has once again been improved and food quality/choice is being enhanced. The financial performance of the incumbent management, despite grave challenges and frequent disruptions from malicious quarters of the company, shows significant improvement in period under review i.e., September 2017 to May 2018 compared with same period last year.

The revenues, despite decrease in capacity available for selling; has increased by 4.5 percent. However, due to massive increase in fuel costs and exchange rate loss (deflation of rupee), the operating cost increased by nearly 20 percent resulting in increase in operating loss by 1.9 percent.

However, for apple-to-apple comparison, if conditions had remained unchanged, consequent to the reforms undertaken by the management, the operating losses would have decreased by approx Rs6 billion and total loss by Rs12 billion. Basic cabin amenities such as pillows, blankets etc., were never to be found on PIA aircraft. Now 100 percent coverage is being ensured.

Source: The News
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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

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ISLAMABAD: A NAB spokesman told The News that the PIA CEO presented documents on his appointment and argued that his appointment was made as per law.

The PIA CEO told the investigation team that he was the 30th CEO of the national flag-career with expertise in management and latest knowledge of the industry. He told the NAB team that out of 29 past CEOs, 19 were from the area of non-commercial aviation.

Source: The News
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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

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NAB summons PIA head in CEO’s perks case

NOKHAIZ SAHI

August 17, 2018

ISLAMABAD/LAHORE -
National Accountability Bureau on Thursday summoned Chairman Pakistan International Airlines Muhammad Irfan Elahi to record his statement in the ongoing inquiry against the PIA CEO and others regarding appointment and validity of drawing salary and perks and privileges by the top boss of the national flag carrier.

On July 22, Chief Justice of Pakistan Justice Mian Saqib Nisar had directed the NAB to probe the PIA CEO Musharraf Rasool Cyan’s appointment and salary during hearing of a suo motu notice about difficulties faced by passengers at Skardu Airport following a special PIA ‘air safari’ that caused a 4-hour delay of a Skardu-Islamabad flight.

Following the top court’s direction, the NAB started investigation into the matter and directed the PIACL chairman to come with all relevant record related to the case.

The NAB summon, copy of which is available with The Nation, reads, “Whereas the competent authority has taken cognisance of the offence under National Accountability Ordinance (NAO) 1999. Whereas the inquiry regarding the appointment, salary and other benefits of the PIA CEO by the airline board has revealed that you are in possession of information whatsoever, which relates to commission of the said offence. In view, thereof, you are called upon to appear on August 17 at NAB Rawalpindi or Islamabad office before the deputy director to record your statement along with relevant record of the PIA Board meeting.” It further read that failing to comply with the notice might entail penal consequences as per the NAO 1999.

Earlier, the NAB had recorded statement of the PIA CEO Mushrraf Rasool Cyan on August 15 in the same case.

The NAB had summoned Rasool on August 9, stating that the inquiry regarding the appointment, salary and other benefits of CEO PIA had revealed that the PIA CEO was in possession of information/evidence whatsoever, which relates to commission of the said offence. “You are hereby called upon to appear on August 15 before the investigation officer at NAB Rawalpindi or Islamabad office to record your plea along with documents related to your profile qualification/experience and appointment as the PIA CEO,” the NAB notice further read.

Sources in the Bureau told The Nation that the NAB investigation team grilled the CEO PIA for around 2 hours and he could not satisfy the team during the investigation.

PIA board members will appear before NAB today to explain the controversial appointment of airline’s CEO in violation of SECP rules. It is worth mentioning here that Supreme Court of Pakistan had directed the NAB to probe into appointment of CEO PIA. The Bureau had started inquiry into the matter and on Friday (today) summoned members board of directors who were basically responsible for this appointment. Sources privy to the development said that four federal secretaries, also members of the board of directors have laid heads together to respond the queries of NAB joint investigation team members. An aviation expert seeking anonymity said that SECP Rules were not followed in the appointment of Musharraf Rasool. He said that Musharraf was awarded contract for three years by the board members whereas it was advertised for two years in newspapers and its approval from the authorities concerned was also for two years but agreement was made for three years. In advertisement 25 years of aviation experience was required for the candidate but he was appointed without any aviation experience. The CEO has experience of 10 years but it is not relevant to the aviation industry nor is experience of working against any senior position. Sources in the airline claimed that it was mentioned in the board meeting minutes Musharraf is a mediocre candidate.

PIA CEO did not appear before airline board of directors for interview and was appointed only on the recommendations of the Human Resource (HR) and Nomination Committee. As per Rules, firstly HR&N committee recommends the names of three candidates which are later approved by board members and then panel of three candidates is sent to prime minister for final approval of a single candidate. There were three names in the panel for the appointment of CEO including Ijaz Haroon (former MD PIA), Junaid Yunis (former MD PIA) and Musharraf Rasool with no aviation experience. But name of Musharraf was finalised for the slot of CEO due to unknown reasons. Sources claimed that former adviser to prime minister on aviation Sardar Mehtab Abbasi used his influence to appoint Musharraf Cyan as CEO PIA since Cyan had served him as PSO when former was Chief Minister KP. AGP has also raised objection on the appointment of Musharraf Rasool in the shape of Audit Para. Services of those PIA board members who had not endorsed Cyan appointment were terminated like Faryal Jooma and Wing Commander Raheel. Faryal had raised objection on the appointment of cyan while Raheel pointed out tempering in CEO documents like his date of birth, CNIC and matriculation certificate.

Source: The Nation
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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

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Discrepancies in PIA CEO’s documents found

Amraiz Khan August 18, 2018

LAHORE -
Commercial Audit Department has revealed clear discrepancies in documents of CEO PIA, as per Personal Policy Manual (PPM) of the airline he is liable to the termination from service.

Audit department in a letter No-OM-09 /PIACL (HRM)/2017-2018 has raised certain objections on the appointment of CEO PIA, Musharraf Rasool Cyan.

Letter speaks, “Application of Musharraf Rasool Cyan was not shortlisted by Board of Directors, the required qualification and experience for the post were not evaluated by the Board of Directors”.

The preliminary interviews of the candidate Cyan were not conducted by board as per Rules, Sardar Mehtab Ahmad Khan, former adviser to Prime Minister on Aviation doubtfully attended the interviewing process of the candidates as Cyan had worked with Mehtab in KP when he was chief minister, which is non compliance of PSC (CG) Rules 2015. According to his academic qualification he does not meet the criteria of the post advertised, as the required qualification of the post as per advertisement was graduation with experience in aviation business or professional or recognized postgraduate, MBA/MPA.

He does not meet the required experience of the advertised post. The letter further said that there are clear discrepancies in his date of birth mentioned in his ID card and matriculation certificate, as per Personal Policy Manual (PPM) of PIACL, hundreds of PIACL employees had already been terminated from service on that ground.

Date of Birth in Musharraf Rasool Cyan national ID card is November 04, 1967 whereas the same in his Matriculation Certificate is March 12 1967, the letter concluded.

As per advertisement published on 20th May 2017 in newspapers, the applications were invited for the post of CEO on contract basis for a period of two years extendable for further period.

The minimum 25 years working experience preferably in international airlines of repute with minimum 10 years experience in a senior professional position in relevant professional areas including inter-alia science, technology, finance, law, business, social sciences having an established worldwide network in airline industry.

Source: The Nation
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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

Post by Vaqar Khan »

According to The Dawn, Auditor General of Pakistan has recommended immediate sacking of PIA's CEO.

https://www.dawn.com/news/1429019/agp-r ... pias-chief
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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

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PIA says CEO appointed as per rules

8/28/2018

KARACHI:
Apropos a news item headlined `AGP recommends immediate sacking of PIA`s chief` appearing in Dawn on Aug 26, the Pakistan International Airlines on Monday said that neither the AGP nor his office had made any observations or conclusive determinations about the appointment of CEO Dr Musharraf Rasool Cyan.

It said the letter alluded to in the news report is speculative and does not count as an audit observation or audit para by the AGP. It may be mentioned that the letter sent by a gov-ernment audit officer to PIA on May 7 with observation about the CEO had already been responded to by the PIA on July 19 to clarif y the matter.

The national flag carrier on Monday said that Dr Cyan`s name was shortlisted and he performed well in both the interviews that followed. He has a PhD in Economics (USA) and an MSc in Development Management (London) and got extensive professional experience by working abroad as well as in the civil service of Pakistan that led to his selection as CEO.

According to PIA, the endre board had endorsed that Mr Cyan possessed theskills set for the CEO, as mentioned in the advertisement. He has been appointed for two years as per the approval granted by the prime minister and that all the SECP guidelines were followed in the appointment process.

Besides, PIA points out, his appointment is a sub judice matter in two quo warrantos which the court of Pakistan shall decide, and before such judgement is made no determination by anyone is valid.

The PIA says that mismatch in the month of birth is a typographical error on part of some individual or elders (and without any objection from the relevant department it is beingamended).

The PIA says that Dr Cyan and his family have not exceeded his entitlement in the use of free tickets. However, the CEO is required to travel as per the business need for official purpose. Perhaps his business travel has been mixed with entitlement for his family`s personal visits.

There is no controversy with CEO of PIACL (a body corporate) being paid above the M1 grade because heis a contractual employee and was offered market-based consolidated salary without benefits of pension and gratuity, medical facilities, post-retirement facilities, tickets etc, adds the PIA version.

Source: DAWN
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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

Post by Abbas Ali »

Former PIA Chief Human Resources Officer Raheel Ahmed has been asked to appear before the National Accountability Bureau (NAB) on December 5 with the record of the appointment of Dr. Musharraf Rasool Cyan as CEO PIA.

Former Chairman PIA Irfan Elahi also has been asked to appear before NAB on this issue.

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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

Post by TAILWIND »

Hope all procedures and pre-requisites were followed for selection and appointment of current CEO/president. It would be too embarrassing if SC finds something wrong !
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Re: Supreme Court Sends Appointment of CEO PIA Case to NAB

Post by Mansoor Mela »

TAILWIND wrote: Sun Dec 02, 2018 5:14 am Hope all procedures and pre-requisites were followed for selection and appointment of current CEO/president. It would be too embarrassing if SC finds something wrong !
Agree with you. The procedure is that job should be advertised. Which was not done. He was initially nominated as Chairman and the job for CEO was to be advertised, but 'someone' later changed his mind and he was appointed CEO/President. I see no difference in Cyan's case and Mr. Malik's. Except the obvious.
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