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, 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 the Federal 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”.