SC dismisses PIA CEO’s plea for reinstatement

ISLAMABAD: The Supreme Court (SC) on Tuesday upheld the decision of the Sindh High Court (SHC) restraining Air Marshal Arshad Mahmood Malik from discharging his duties as the chief executive officer (CEO) of the Pakistan International Airlines (PIA).

A three-member SC bench, headed by Chief Justice Gulzar Ahmed, and comprising Justice Ijazul Ahsen and Justice Sajjad Ali Shah, dismissed the petition, filed by Malik, challenging the SHC verdict.

The Sindh High Court, while hearing the petition filed by one Safdar Anjum, had restrained Arshad Mahmood Malik from working as the PIA CEO. The petitioner submitted that Air Marshal Malik did not have the academic qualifications required for the post, adding that he did not have any experience with regard to airlines either.

The CEO, however, moved the SC while challenging the SHC verdict. On Tuesday, the court upheld the SHC verdict and assigned the task to the PIA board of governors (BoGs) to run the national flag carrier affairs with the ruling that it would exercise the powers of CEO and chairman of the PIA.

The court also summoned the record of the instant case pending before the SHC, and held that the appeal filed against the SHC as well as other connected matters would be clubbed and heard jointly.

During the course of hearing, CJP Gulzar Ahmed observed that the PIA was a national asset, and not personal property of anyone, adding that a case was pending before the apex court pertaining to determining the procedure for appointment of chairman of the national flag carrier.

The court also expressed grave concerns over Rs700 million contract given by the PIA to a retired Pakistan Air Force officer. The chief justice said a news item was published in a newspaper regarding the award of a Rs700 million contract to a retired PAF officer.

“We will not set aside the verdict of the Sindh HighCourt, which had restrained Air Marshal Arshad Mahmood Malik from functioning as the PIA CEO,” the CJ remarked.

Justice Sajjad Ali Shah, another member of the bench, observed that a three-column news published in Daily Jang stating that the PIA awarded a contract of Rs700 million to a company which was registered only two months back. He said that since the CEO had taken the charge, the fares of the national flag carrier had increased 100 per cent.

Daily The News and Jang had published a news story, filed by senior correspondent Umar Cheema wherein it was revealed that the PIA had awarded a contract of Rs700 million for up-gradation of In-Flight Entertainment (IFE) in eight Boeing 777 aircrafts to a local company, which was registered only two months before the tender was floated.

According to the news item, a retired PAF officer, Group Captain (retd) Khwaja Moizuddin is owner of the M/s Avionic Solutions (Pvt) Limited, who is said to be a close friend of PIA CEO Air Marshal Arshad Malik.

The CJ remarked that the CEO himself came on deputation and brought along a team of 10. “I do not know how the air marshal will operate the airline,” the chief justice questioned and said it is better that he packs up.

The CJ asked Attorney General Anwar Mansoor to travel by the PIA and witness its condition. The AG submitted that an advertisement was given for the appointment of chief executive officer and Arshad Mahmood was confirmed as the CEO of PIA as per the procedure.

Justice Sajjad Ali Shah, however, observed that the advertisement had to be reviewed whether it was issued with a “particular design”, adding that the court would look at old advertisements also. Meanwhile, the court adjourned the hearing for two weeks.

Agencies add: The Supreme Court bench also called into question the appointment of four air vice marshals, two air commodores, three wing commanders, and one flight lieutenant to the national airline.

How can Arshad Malik make such appointments when he himself was appointed on deputation, questioned the top judge.

The bench also noted that another case pertaining to the PIA chief’s appointment was already being heard in the Supreme Court. Justice Sajjad Ali Shah remarked: “You are running the national airline’s affairs like those of a family business. How can you manage the PIA when you failed Shaheen Airways miserably?”

The bench observed that the PIA chairman should be appointed according to the law. The government should appoint new CEO of the PIA under the set procedure, directed the apex court. The bench remarked that why the government was running the national flag-career. “Hand over the PIA to the Air Force,” remarked the apex court bench (angrily).