ISLAMABAD, Dec 20: The Public Accounts Committee (PAC) of the National Assembly on Thursday directed the defence secretary, who is also chairman of the Pakistan International Airlines (PIA), to review the policy of offering free tickets to senior officials and serving and retired managing directors of the airlines.

“Had they (MDs) managed the PIA well, the committee wouldn’t have issued this directive, but considering perilous financial health of the national carrier, we cannot afford such provisions,” PAC chairman Nadeem Afzal Gondal said. The PAC met at the parliament house to take up audit paragraphs concerning the ministry of defence for the year 2004-2005.

Mr Gondal asked the defence secretary, Lt-Gen (retd) Asif Yasin Malik, to review the performance of the airline’s heavily paid managers. “Since the PIA continues to suffer heavy losses, there is no fun in keeping an army of professionals.”

The PAC chairman said the new PIA management had to be tough in enforcing discipline otherwise the organisation would keep sinking. “If somebody is not performing well, show him the door,” Mr Gondal said.

The secretary assured the committee that he would carry out ‘performance audit’ of the PIA’s top bosses followed by strict disciplinary action.

He agreed with Mr Gondal that the free ticket policy needed to be reviewed.

The life-time free ticket facility is available to its serving chairman and managing directors and also to their families. The retired managing directors and chairmen may avail up to eight such tickets every year.

In reply to a question, the secretary said that besides placing an order for five new Boeing 777s, the PIA was phasing out its old aircraft.

On Wednesday, Defence Minister Syed Naveed Qamar told the Senate that the PIA losses, which stood at Rs42.4 billion in 2008 had now gone up to Rs141.4bn. The minister also confirmed cases of embezzlement in the organisation which over the last four years had cost the PIA a loss of Rs127.41 million. The cases included acceptance of bogus cheques and non-receipt of cargo sale.

Similarly, he said, the PIA suffered another loss of Rs46.218m because of “irregular and unjustified payments” to Muhammad Saleem Sayani, the deputy managing director, whose services had been terminated and an investigation was in process.

The PIA, the minister said, had suffered a loss of Rs16.200m because of “irregular retention of a pilot appointed on bogus certificates”.

US PAYMENT: The PAC was also informed that the US had refused to pay Rs72m which the American government owed to Pakistan for using its airspace.

According to an audit para for the year 2004-2005, the US air force planes used Pakistani airspace, which in accordance with the Civil Aviation Rules resulted in charges of Rs72m.

However, the US government has refused to make the payment.

A-I MILITARY LANDS: The PAC was informed that ministry of defence was yet to issue detailed procedures of a policy which had been approved by the government in April 2008.

According to Auditor General of Pakistan, Bulund Akhtar Rana, although the ministry of defence had regularised use of A-I military lands under the new policy, it is yet to settle controversial transactions which had been made prior to the introduction of the new policy.

For example, the ministry is yet to reconcile nearly Rs2bn which it had earned from the commercial use of the military land in Lahore.

The secretary of defence told the PAC that under the new policy, A-I military lands had been categorised into three types — one for agriculture, second for commercial use and the third for setting up small shops for the welfare of troops. The PAC directed the ministry to reconcile all these transactions with the audit within 20 days.

In reply to a question about Okara military farms which involved 16,000 acres of land, the secretary of defence said the court had ruled in favour of the government, but tenets tilling the land for decades had refused to vacate. The PAC chairman said the issue had been politicised and could only be resolved by politicians.

“I don’t think anybody would touch this issue before upcoming general elections, hence let the new government handle it,” Mr Gondal said.