PIA boss detained in Pakistan over SriLankan lease deal

Monday, 20 March 2017 00:05 - - {{hitsCtrl.values.hits}}

Pakistan International Airlines (PIA) interim CEO Bernd Hildenbrand has been placed on an Exit Control List (ECL), according to sources quoted in Pakistan’s The News.

Federal Investigation Agency (FIA) Deputy Director Khawaja Hammadur Rehman issued the notification on 15 March, according to the report.

The FIA is investigating Hildenbrand and other PIA executives over alleged kickbacks, embezzlement and mismanagement in the lease of aircraft, namely A330-300 - 4R-ALN (cn 1604) from SriLankan Airlines.

The wet-leased A330 was recently returned after a six-month contract. Local newspapers had quoted SriLankan Airlines CEO Captain Suren Ratwatte as saying the deal was the most profitable one the airline had made in recent history.

PIA reportedly paid $19 million for the six month deal. The aircraft was deployed on the Premier London Heathrow-Islamabad service, which allegedly lost PKR1.5 billion ($14.3 million) over the course of its operation.

A Senate panel recently released an enquiry into PIA’s finances and management, finding that corruption was a problem in all areas of business.

“Corruption is rampant in purchase of spares parts, allocating of space for freight, purchase of tickets, in enrolments and postings and in catering and engineering departments,” the report says. It recommends the immediate dissolution of the Board of Directors, and the appointment of a permanent CEO.

In Sri Lanka questions have been raised on the non-payment of dues from the lease with reports indicating a commitment to settle the arrears at the end of March.