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Forensic audit of PIA to be carried out

  • April 08, 2021

ISLAMABAD – The government on Wednesday has approved to carry out the forensic audit of the Pakistan International Airlines Corporation Ltd (PIACL) through a well-reputed private sector firm after following PPRA rules. 

The decision of carrying out forensic audit was taken in the meeting of Cabinet Committee on State Owned Enterprises (CCOSOEs), which was chaired by Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar. The Secretary Finance further apprised that PIACL has informed that a special audit of the Pakistan International Airlines (including its subsidiaries) was conducted by the Auditor General of Pakistan. Therefore, it was recommended that forensic audit of the PIACL may be carried out through a well-reputed private sector firm after following PPRA rules. The Committee considered and approved the said proposal. 

Meanwhile, the Economic Coordination Committee (ECC) of the Cabinet has recommended the restructuring plan of PIACL for onward submission before the Cabinet, after reconciliation of tax liability figures, with a direction to place a cap on future debt, which PIACL could take against its improved balance sheet, once restructuring plan is implemented. The Aviation Division submitted a summary before the ECC regarding restructuring plan of the Pakistan International Airlines Corporation Ltd (PIACL). The Adviser to the Prime Minister for Institutional Reforms and Austerity made a detailed presentation on human resource and operational restructuring of the PIACL. He drew attention to the various options for restructuring and outlined measures to minimise losses and transform PIACL into a financially viable entity. It included human resource restructuring through Voluntary Separation Scheme (VSS), hiring Aviation experts, fleet modernisation, routes rationalisation, product development, and revenue enhancement measures. 

Finance Division presented a summary before the Committee regarding approval of Terms of Reference (TORs) for forensic audit of the State Owned Enterprises (SOEs) in accordance with the earlier decision of the CCOSOEs  meeting on Jan 20, 2021. 

The Secretary Finance presented revised TORs for forensic audit by the AGP Office and private Audit firm(s) to identify gaps with a clear focus on suggesting improved procedures for quality assurance and cost minimisation. The forensic audit will also identify circumstances leading to losses incurred by SOEs, besides identifying suspicious and fraudulent transactions (if any) for fixing responsibility.

After due deliberations, the Committee approved the revised TORs for forensic audit of the State Owned Enterprises to be followed by the AGP Office as well as private audit firm(s) to be hired as per PPRA rules. 

The Committee stressed to exercise due diligence and complete the process of forensic audit at the earliest to expedite the process of bringing reforms in SOEs. Federal Minister for Privatization Mohammadmian Soomro, Advisor to the Prime Minister on Commerce Abdul Razak Dawood, Advisor to the Prime Minister on Institutional Reforms and Austerity Dr Ishrat Hussain and SAPM on Revenue Dr Waqar Masood also participated in the meeting.

Article source: https://nation.com.pk/08-Apr-2021/forensic-audit-of-pia-to-be-carried-out

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