October 09, 2010 - Transparency International has raised serious allegations regarding the Pakistan International Airlines with the defence secretary requesting to probe the bribery issue in procurement of gifts for Hujjaj in 2010 and procurement of two aircraft on lease for 2011 Haj, which have not been used in the operation.
This is also alleged by the complainant that out of total planned 305 Haj flight, PIA had to cancel 42 Haj flights for non availability of planes and 76 flights were delayed.
These allegations, if determined true by MoD, may result in application of Rule No 7, (Integrity Pact on suppliers, and fine of Ten Times of $5.2 million, i.e. $ 52 million from suppliers, in addition to action under NAO 1999 by NAB. This act is also violation of UNCAC Article 16. “Bribery of foreign public officials and officials of public international organizations”. Kindly note that UNAC was ratified by Pakistan on 11 August 2007.
We request the Defence secretary, who is also a PIA director, to check points raised by TI, Pakistan, and if the allegations of violations are correct, take action against the officers responsible for these serious acts, which not only may have caused loss to exchequer of SR337,000 and $5.2 million but also may cause serious diplomatic issues between Pakistan and Saudi Arabia the most friendly country of Pakistan, on issues of PIA, putting allegations of corruption on Saudi Government officials/staff of the General Authority of Civil Aviation (GACA), PPMDC and Immigration and Customs.