ISLAMABAD:The apex court has ruled that Marshal Arshad Malik, the Pakistan International Airlines chief executive officer (CEO) – who is also a serving officer of the Pakistan Air Force – shall choose between his two posts.
“An officer on deputation can’t head a [government] institution. It is illegal. Air Marshal Arshad Malik should either relieve himself as a PAF officer or give up the PIA post,” said Chief Justice of Pakistan Gulzar Ahmed on Thursday.
Gulzar Ahmed was heading a three-judge bench hearing Malik’s plea seeking a stay against a Sindh High Court order. On Dec 31, 2019, the SHC restrained Malik from working as PIA’s CEO on a petition filed by the secretary general of PIA’s Senior Staff Association (Sasa).
Subsequently, the PIA moved the Supreme Court against the SHC order and the top court bench – also comprising Justice Ijazul Ahsan and Justice Sajjad Ali Shah –clubbed Malik’s petition with a suo motu case pertaining to the PIA’s losses.
Chief Justice Gulzar noted that the PIA would be left head-less if the air marshal was called on PAF duty. He noted with concern that nothing has changed as the government is trying to run affairs on an ad-hoc basis.
“The PIA needs a permanent chief, who could run the flag carrier in a professional manner and turn it into a profitable entity. The appointment [of Malik], however, shows the federal government’s lack of seriousness,” he said.
The PIA’s counsel Salman Akram Raja earlier argued that a retired air marshal was locked in his office by the PIA union members.
He also cited example of the PIA former chief Air Marshal Noor Khan, who held two positions simultaneously.
Justice Shah noted that Raja’s argument painted a dismal picture of the state’s writ. “Are you saying the union will not let PIA function if there is no fear of armed forces?” he questioned. The bench also rejected the parallels drawn between Malik and Noor Khan.
The top judge noted that the Pakistan Steel Mills (PSM) was also taken over by an acting army officer but it has shown no signs of improvement. “The PSM is posting losses every year.”
The apex court noted that the national carrier should be run professionally and its facilities should not be misused.
Naeem Bukhari, the counsel for the PIA CEO, sought time from the bench, which adjourned hearing till first week of March.
Illegal sale of aircraft
During the hearing on Thursday, PIA’s counsel Salman Akram Raja said that an earlier decision to sell an aircraft was taken by former CEO Bernd Hildenbrande.“The plane was used for a movie shoot in Malta before being parked at a German airport. We were paid €210,000 for it,” he said.
Justice Gulzar described as “grave” the reports that the plane was lent to an Israel production company. He also noted that the cost of flying and parking the plane in Germany exceeded its selling price.
Raja told the apex court that the PIA board was reviewing why the plane was parked at a German airport for so long.
The chief justice remarked that the national carrier has grounded four aircraft and details of three are still missing. “Should we allow the current management to operate in such a scenario?” he observed and added that the PIA transactions only exist on paper.
The National Accountability Bureau (NAB) informed the bench that the PIA board is concealing details regarding the missing plane and sought time to further probe the matter.
Accepting NAB’s request to seek time, the top judge directed it to continue the investigation.
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