PIA admits financial irregularity of Rs 5.45 Crore in payment to French company

PIA admits financial irregularity of Rs 5.45 Crore in payment to French company
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The management of Pakistan International Airlines (PIA) has admitted that the payment of five crore and 45 lac rupees, that was given to French company Bugatti, was a procedural mistake, and investigation of the matter is being carried out.

PIA spokesperson told a private TV channel that the money was sent just because of irregularity, not due to any corruption as PIA wants to keep its policies transparent. 
He further said that both internal and external interrogations are underway, and clarification of related objections has also been given to the auditor general.

According to sources, Federal Investigation Agency (FIA) is also probing the matter due to the violation of public procurement rules of 2004. PIA had made irregularities in payments of brakes of Airbus and Boeing planes which were purchased from the French company.

As per PIA’s audit report for the year 2016, the real manufacturer of the parts was not disclosed to benefit Bugatti. The company was also given the authority to increase the prices when the contract was signed.

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