PIA audit detects large-scale irregularities
LAHORE: Irregularities worth millions of rupees have been detected in accounts of several international and domestic stations of Pakistan International Airlines (PIA).
According to preliminary observations in the internal audit report for 2011, at Riyadh station PIA incurred a loss of Saudi Riyal 139,500 on account of excessive baggage allowance allowed on tickets for infants, SR43,997 due to short collection of fares by BSP agents, Rs4 million on account of short collection of virtual coupon records (VCRs), SR87,502 due to office renovation without approval by the head office, SR48,760 on account of discrepancies in staff payments, SR111,728 due to defaulting agents and SR32,060 due to fines paid against deportees.
At Jeddah station, short receipt of VCRs was Rs4.1 million and COD charges paid was SR86,714.
At the PIA’s Kathmandu station, outstanding debit memos amounted to $40,530, outstanding against immigration fines to Rs1 million, outstanding against cost incurred on deportees to Rs1.5 million and un-filed refund claims for corporate tax (2002-09) to Rs82 million.
At Beijing station, the receivables amounted to Y509,040. At Kuwait station, short collection of VCRs was Rs3847753 and unsettled debit memos amounted to Rs7.1 million.
At Glasgow station, unsettled debit memos amounted to £16,767.
At London station, outstanding against defaulting agents was £190,929, outstanding debit memos £60,000, outstanding against credit card companies £686936, short collection of passenger service charges £14,679, unsatisfactory credit position at cargo cell £109,551, payment of immigration fines £77,712, exorbitant expense on casual labour hired £74,910, payment of overtime compensation £104,904, irregular payment of entertainment allowance £15,810, wrong charges of supplementary commission by BSP agents £86,898, short collection in respect of no show charges £243,880, excessive charging of 9 per cent agency commission by BSP agents, overdue credit balance £111,471, imposition of immigration fine £88,000 and outstanding double payments in purchase cell amounting to £24,281.
At Tehran station, unnecessary withholding of sale proceeds amounted to Iranian Riyal 50 million on average, underpayment/reporting of sales to IR1.07 million and underselling of fares to IR5.40 million.
At Toronto station, outstanding debit memos amounted to CAD133,956.
At Moscow station, recoverable amount from M/S Westline International was $323,194, short collection due to non-increase of fare $74,896 and unjustified deduction by GSA on account of overcharged fuel surcharge $29,105.
At Rome station, outstanding amount from defaulted agents was 290,280 euros.
At Multan station, outstanding against various parties amounted to Rs8.5 million.
At Sialkot station, amount recoverable from defaulting agents was Rs5.8 million and outstanding against irregular cargo claims Rs1 million.
At Lahore station, improper affairs of Speedex caused outstanding credits to rise to Rs34.9 million, outstanding against defaulting passengers to Rs45.8 million, outstanding against defaulting BSP agents to Rs5.1 million, overdue credits to Rs35.6 million, outstanding debit memos to Rs5.5 million, uncovered charges on deportees and other charges to Rs2.1 million, uncovered immigration fine to Rs3.9 million, and outstanding against M/S Malik Brothers to Rs6.6 million.
In response to queries, PIA spokesman Sultan Hassan told Dawn that the audit observations were not final. “These are mere observations for rectification of accounts. However, if the audit people are not satisfied in this regard then a responsibility is fixed for action,” he said.