PIA awards Rs 700 m contract to dubious company

[War Historian]

Lut pai hay is mulk vich.

PIA awards Rs700m contract to dubious company

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ISLAMABAD:-In a scandalous deal, the Pakistan International Airlines (PIA) have awarded a contract of Rs700 million for the up-gradation of In Flight Entertainment (IFE) in eight Boeing 777 aircraft to a local company which was registered only two months before the tender was floated.

A retired Pakistan Air Force officer, Group Captain (R) Khawaja Moizuddin, is the owner of that company, M/s Avionic Solutions Private Limited. It was incorporated with a capital share of Rs100,000. He is said to be a close friend of PIA CEO, Air Marshal Arshad Malik. The PIA spokesman termed the allegation “highly unfair and absurd.” Malik is presently under suspension on the order of the Sindh High Court after a petitioner challenged his appointment.

Avionic Solutions, according to PIA spokesman, has extensive commercial and military avionics modifications and technical support experience and are working with local and international players. However, this claim is in contrast with the details mentioned in the documents available with The News. They indicate the company was registered only in March last year, two months before the tender was floated by PIA in which Avionic Solutions participated and won. M/s AAR International Corporations of Singapore, with 70-year experience in the relevant field, was another company that participated in the bid and lost.

Other than Khawaja, his wife and daughter, a student, are Directors of the Avionic Solution. By the time of participation, it had not filed a single tax return, annual report and there was no auditor to look after its accounts. The PIA’s spokesman initially said that Avionic Solutions was not a newly formed company and later said Terms of Reference designed for the purpose didn’t specify how much experience the company should have. When asked that TORs might have been tailor-made to oblige a particular bidder, he said PIA wanted “indigenous solutions” of IFE and there is no local company having relevant experience. He said the service provider will be paid only after its products are certified to be fit for the purpose.

The IFE is a digital entertainment system consisting of audio and visual gaming as well as other material designed to entertain the passengers, especially during flights. It is used as a marketing tool and is considered a need for the modern airline industry. Installation and up-gradation of IFE is a highly technical job and needs certification of the European Union Aviation Safety Agency and Federal Aviation Authority of the US Department of Transportation.

Out of eight aircraft selected for up-gradation, three are 16-year old, two are of 14-year and another two have a life of 11 and 12 years respectively. As per aviation policy, no aircraft can be operated after 20-year life. Major airlines like Emirates have phased out the above series of Boeing 777 aircraft and most airlines have a policy of using aircrafts not older than 12 year as per average as prohibitive maintenance is required on fleet older than 15 years.

In the case under question, tenders were invited in June and two companies participated: AAR International Corporation which was registered in 1951 and Avionic Solutions which was only two-month-old at the time of floating tender. Incidentally, PIA’s Chief Financial Officer Khalilullah who signed this award to Avionic Solution was also hired in the month when a tender was floated. Avionic Solutions, the winner of the Rs700 million project, doesn’t have any experience of carrying out such a project, a fact admitted by PIA spokesman who was initially of the view the winner has “extensive experience.” The company was registered on the same date (March 18, 2019) with the Securities Exchange Commission of Pakistan and the Federal Board of Revenue.

When asked if this is true that it was a family-owned company where a family head has appointed his wife and daughter its directors who don’t have any experience, the spokesman said Avionic Solutions is a private limited company including partners from the family which “is a common practice in Pakistan.” To another question that whether it is true that the company was set up just two months before the floating of tender, the spokesman said “the evaluation criteria required a registered company which it was at the time of bid submission.”

He said TORs required a solutions provider that can provide an indigenous cost-effective solution. The mandatory requirements were of a company that is registered with local companies and taxation regulators and could provide components, services, and support in compliance with FAA Part 21 and PCAA certifications, he said. Asked then why PIA allowed a foreign company to participate in the bid if a local company was required for “indigenous solutions”, he said the foreign company had a local representative.

https://www.thenews.com.pk/print/601878-pia-awards-rs700m-contract-to-dubious-company

 

[niaz]

I have traveled extensively during my business carrier albeit mostly on business. In addition to the safety, what I always looked for during the long haul flights (lasting for three hours or more) was three things:

1. Comfortable seats & efficient service ( meaning punctuality, helpful staff & clean toilets) stocked toilets)

2. Quality of food

3. Inflight entertainment.

My favorites were the Emirates & Singapore Airlines and the Swissair while traveling to Nigeria. I am not alone as despite the inconvenience of changing planes in Dubai & being a bit expensive; Emirates is the most popular airline for Pakistani travelers between London & Pakistan.

PIA has been a burden on the national exchequer for a long time. If we truly want to make PIA a profitable & popular airline, we have to make the product more appealing than it currently is and good inflight entertainment is one of the important components.

I believe that once you appoint someone as the Chief Executive, you should let him get on with the job. Only if fails to deliver then you can criticize and find faults to your heart’s content. Let the Air Marshall do his job, no point in assuming that he is corrupt over his every action.

Regrettably, it is a ‘Norm’ in Pakistan that the losers pay some ‘Lifafa journalists' to write against the winner. Just because this company is unknown does not imply that it is also ‘Dubious’.

 

[Devil Soul]

PIA awards Rs700m contract to dubious company

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ISLAMABAD:-In a scandalous deal, the Pakistan International Airlines (PIA) have awarded a contract of Rs700 million for the up-gradation of In Flight Entertainment (IFE) in eight Boeing 777 aircraft to a local company which was registered only two months before the tender was floated.

A retired Pakistan Air Force officer, Group Captain (R) Khawaja Moizuddin, is the owner of that company, M/s Avionic Solutions Private Limited. It was incorporated with a capital share of Rs100,000. He is said to be a close friend of PIA CEO, Air Marshal Arshad Malik. The PIA spokesman termed the allegation “highly unfair and absurd.” Malik is presently under suspension on the order of the Sindh High Court after a petitioner challenged his appointment.

Avionic Solutions, according to PIA spokesman, has extensive commercial and military avionics modifications and technical support experience and are working with local and international players. However, this claim is in contrast with the details mentioned in the documents available with The News. They indicate the company was registered only in March last year, two months before the tender was floated by PIA in which Avionic Solutions participated and won. M/s AAR International Corporations of Singapore, with 70-year experience in the relevant field, was another company that participated in the bid and lost.

Other than Khawaja, his wife and daughter, a student, are Directors of the Avionic Solution. By the time of participation, it had not filed a single tax return, annual report and there was no auditor to look after its accounts. The PIA’s spokesman initially said that Avionic Solutions was not a newly formed company and later said Terms of Reference designed for the purpose didn’t specify how much experience the company should have. When asked that TORs might have been tailor-made to oblige a particular bidder, he said PIA wanted “indigenous solutions” of IFE and there is no local company having relevant experience. He said the service provider will be paid only after its products are certified to be fit for the purpose.

The IFE is a digital entertainment system consisting of audio and visual gaming as well as other material designed to entertain the passengers, especially during flights. It is used as a marketing tool and is considered a need for the modern airline industry. Installation and up-gradation of IFE is a highly technical job and needs certification of the European Union Aviation Safety Agency and Federal Aviation Authority of the US Department of Transportation.

Out of eight aircraft selected for up-gradation, three are 16-year old, two are of 14-year and another two have a life of 11 and 12 years respectively. As per aviation policy, no aircraft can be operated after 20-year life. Major airlines like Emirates have phased out the above series of Boeing 777 aircraft and most airlines have a policy of using aircrafts not older than 12 year as per average as prohibitive maintenance is required on fleet older than 15 years.

In the case under question, tenders were invited in June and two companies participated: AAR International Corporation which was registered in 1951 and Avionic Solutions which was only two-month-old at the time of floating tender. Incidentally, PIA’s Chief Financial Officer Khalilullah who signed this award to Avionic Solution was also hired in the month when a tender was floated. Avionic Solutions, the winner of the Rs700 million project, doesn’t have any experience of carrying out such a project, a fact admitted by PIA spokesman who was initially of the view the winner has “extensive experience.” The company was registered on the same date (March 18, 2019) with the Securities Exchange Commission of Pakistan and the Federal Board of Revenue.

When asked if this is true that it was a family-owned company where a family head has appointed his wife and daughter its directors who don’t have any experience, the spokesman said Avionic Solutions is a private limited company including partners from the family which “is a common practice in Pakistan.” To another question that whether it is true that the company was set up just two months before the floating of tender, the spokesman said “the evaluation criteria required a registered company which it was at the time of bid submission.”

He said TORs required a solutions provider that can provide an indigenous cost-effective solution. The mandatory requirements were of a company that is registered with local companies and taxation regulators and could provide components, services, and support in compliance with FAA Part 21 and PCAA certifications, he said. Asked then why PIA allowed a foreign company to participate in the bid if a local company was required for “indigenous solutions”, he said the foreign company had a local representative.

https://www.thenews.com.pk/print/601878-pia-awards-rs700m-contract-to-dubious-company

The news regarding awarding of this contract was published in little know media outlet known as BaghiTv in Jul 2019:

EXCLUSIVE: PIA Contract Awarded to Avionics Solution Pvt. Ltd.
PAKISTAN
By Sanniah Hassan Last Updated Jul 18, 2019

221 0


Lahore (18th July, 2019): Pakistan International Airlines (PIA) contract given to Avionics Solution (Private) Limited.
According to Baaghi TV’s sources, contract for PIA has been awarded to a newly registered company, Avionics Solution. Sources confirm, the contract has been given to the private firm for approximately Rs. 700 million on the 18th of March, 2019.

Baaghi’s sources confirm, that Avionics Solution (Private) Limited of CUIN 0131517 came into existence only a few months ago. Moreover, the company’s jurisdiction being in Pakistan, its head office is situated in the Urban Islamabad Capital Territory (I.C.T.) on Main Golra Road.

According to Baaghi’s sources, the evaluation report which has been recently discovered confirms that as per Policy, the International Corporation of Singapore has been rejected in the bid to be granted the contract by Avionics Solution. It is further stated in the evaluation report that principle activities for this private company include:

“749,000 Professional, scientific and technical activities/ Other professional, scientific and technical activities n.e.c./ Other professional, scientific and technical activities n.e.c.”

However, there is no proper explanation as to what these activities may be. What is most alarming, is that the future of Pakistan’s official government airlines, PIA has been handed over to a company with little to no experience. A company which has suddenly come into existence without any prior connections.

How can the public of Pakistan expect any progress to come out of such an agreement from a company that is itself a fledgling? At a time when it is supposed to be taking baby steps towards progress, how can Pakistan International Airlines which is itself rapidly deteriorating be awarded to this newly registered company under the promise of progress?

Stay tuned to Baaghi TV for developing story.
https://en.baaghitv.com/exclusive-pia-contract-awarded-to-avionics-solution-pvt-ltd/

 

[RoadRunner401]

Soooo obviously a massive fraud. But the article and the source has no credibility either. There is no policy that states an aircraft can't fly after 20 years of service and its not an industry standard either

On average, an aircraft is operable for about 30 years before it has to be retired. A Boeing 747 can endure about 35,000 pressurization cycles and flights—roughly 135,000 to 165,000 flight hours—before metal fatigue sets in. 747s are retired after approximately 27 years of service.

Fake news

No its real.

SC rejects PIA CEO’s appeal to continue working, questions appointment of 10 PAF officer.

The Supreme Court rejected on Tuesday Air Marshal Arshad Malik’s appeal to remain the Chief Executive Officer (CEO) of Pakistan International Airlines (PIA) while raising suspicions on increased fares and appointment of ten officers of the Pakistan Air Force (PAF) in the national carrier.


The three-member bench, headed by Chief Justice of Pakistan Gulzar Ahmed, called into question the appointments of four air vice marshals, two air commodores, three wing commanders and one flight lieutenant in the national airline.


"How can Arshad Malik make such appointments when he himself is appointed on deputation?" questioned the top judge.


The bench also noted that another case pertaining to the PIA chief's appointment was already being heard in the Supreme Court.


Malik had filed a petition in the Supreme Court, requesting for a stay order against a Sindh High Court order, which restrained him from working as PIA's CEO.


During the hearing today, Justice Sajjad Ali Shah, who was part of the bench hearing the case, said: "We want to see if the advertisement of PIA CEO's post was designed with Arshad Malik in mind as he does not have the pre-requisite qualification, education or the expertise required for the job."


Justice Shah also raised concerns over reports that a bid worth Rs70 million was awarded to an air commodore and said that the "fares of PIA had increased by 100 per cent" since Malik's appointment.


"You are running the national airline's affairs like those of a family business […] How can you manage PIA when you failed Shaheen Airways miserably?" he remarked.


The Supreme Court rejected Malik's plea and handed the reins of PIA to the board of governors. The bench summoned the record of the case which is currently being heard in the SHC and adjourned the hearing until two weeks.

Contract is worth 70Million not 700 Million.

 

[DESERT FIGHTER]

Thats nominal account. You can even setup a company with 1rs. Its common for new companies to be setup this way.

Even to get a security company you have to show 10 million in account & 1.5 million in each directors.
There should be some rules and regulations.

 

[Imran Khan]

Thats nominal account. You can even setup a company with 1rs. Its common for new companies to be setup this way.

and with in two months you got experience too ?.

 

[WarKa DaNG]

Another day, Another scandal

 

[Zhukov]

Khaya, Pia, Hazam kia.

 

[War Thunder]

because with 100000 capital you can not have contract of 700 millions janab . its fake company . 1 lakh ki to aik seat ka saman nhi aata .

Alright makes sense, I wouldn't waste time reading an article from the news.

Lol itni seedhi sadhi dunya naheen hai.

Depends. Kon kese mind se dunya ko dekh raha hai.

 

[RoadRunner401]

PIA has been a burden on the national exchequer for a long time. If we truly want to make PIA a profitable & popular airline, we have to make the product more appealing than it currently is and good inflight entertainment is one of the important components.

Sir, PIA has been in this condition because of these Questionable appointments, you are saying that the only way it can turn around is continuing to do the same old Same old?

 

[denel]

recently a lot of news about PAF corruption is coming in the media , there is also news about PAF's fazaia housing scheme also making rounds this involves billions of rupees , now we have these ex - paf staff .. wth

It is much like here with SAA; there is needs to be an end for fiefdom and let it work as a private enterprise with no interference.

and with in two months you got experience too ?.

definitely a front company to milk a huge portion of commissions with kickbacks; then outsource the work to another party. Definitely skandaal as we say it here.

 

[Imran Khan]

It is much like here with SAA; there is needs to be an end for fiefdom and let it work as a private enterprise with no interference.


definitely a front company to milk a huge portion of commissions with kickbacks; then outsource the work to another party. Definitely skandaal as we say it here.

yes they are front man of real company whom will work on these b777s .

 

[Cent4]

and with in two months you got experience too ?.

You dont look at how much experience these companies have. Its about the expertise that they bring and if they have capacity to complete the project.

Even to get a security company you have to show 10 million in account & 1.5 million in each directors.
There should be some rules and regulations.

Money in account of company or in the personal accounts of the directors is not the same thing as the share capital with which the company has been opened.
Obviously if there are such terms than the company should be able to provide evidence of that.
You can open a company with share capital of 100,000,000 and still not have to show that money in company account.

 

[Imran Khan]

You dont look at how much experience these companies have. Its about the expertise that they bring and if they have capacity to complete the project.



Money in account of company or in the personal accounts of the directors is not the same thing as the share capital with which the company has been opened.
Obviously if there are such terms than the company should be able to provide evidence of that.
You can open a company with share capital of 100,000,000 and still not have to show that money in company account.

ab hum itny pagal to nhi idher contract nikla idher company ban gai dost ki . idehr contract mil gya . ap itny seedhy ho dunya nhi hai

 

[Syed1.]

I do not think the PIA CEO can be stupid enough to try and do something like and think he will get away with it while IK is PM. Time and again The News has been seen to peddle completely false news, I will wait till we hear something from PIA or some other more credible media house picks this up.