KARACHI, Nov 28: Pakistan People’s Party’s central information secretary Sherry Rehman has criticised the PIA management for what it called scandalous mismanagement which had been resulting in losses to the national carrier.

Mounting losses have threatened the national carrier with liquidation as its current liabilities have exceeded assets by Rs20billion and monthly losses stood at Rs1billion plus, she claimed at a news conference at Bilawal House on Tuesday.

She further stated that the suspension of Boeing-747 operations to Europe was likely to incur another string of revenue losses.

She also referred to the ban imposed by the EU pointing out that several aircraft have been grounded on international airports over safety issues.

Sherry Rehman also referred to the plane crash at Sharjah on November 26 which led to the closure of Sharjah airport for six hours. She also referred to two more incidents at Multan and Walton in the recent past.

The weak financial position of the airline stood exposed as auditors have quoted a gross loss of Rs 74 million and a net loss of more than Rs 6.1 billion during the half year ending June 30, she claimed, adding there was an accumulated losses of Rs 17.9 billion, and PIA’s current liabilities have exceeded its current assets by Rs 20.326 billion.

According to finance advisor, Salman Shah, PIA’s total losses exceeded its assets by Rs22 billion, and PIAC was making a staggering loss of Rs1billion every month.

“Equally disturbing is the fact that due to lack of an audit trail and mismanagement in the inventory system, the auditors said that they cannot verify valuation of capital spares and consumable stores with a carrying value of more than Rs3.7 billion and over Rs2. 4 billion, respectively,” said Sherry Rehman who was flanked by other PPP leaders.

Referring to delay and cancellation of various domestic and international flights, Ms Rehman said PIA’s Boeing 777s have seen several faults with an aircraft stranded outstation, accompanied by cost of hotel accommodation to passengers.

The fleet of Boeing 777s, she said, had become a victim of PIA’s neglect. The newly inducted ATRs were grounded for days due to lack of spares. It was all due to mismanagement by PIA's politicised executives, she said.