PIA makes a scandalous deal worth Rs 700 million with a dubious IT company
ISLAMABAD - Pakistan International Airline has made a scandalous deal in which the company had awarded Rs. 700 million worth contract for the up-gradation of the In-Flight Entertainment system to a ghost IT company. The company that won the tender had been registered only two months ago. The IFE system is needed for 8 Boeing 777 aircraft.
The IT Company is owned by Khawaja Moizuddin a retired Air Force officer. The company had been designated as Avionic Solutions Private limited. According to various reports, the owner of the corporation is said to be in great acquaintance with the current CEO of PIA Air Marshal Arshad Malik.
A spokesperson of PIA condemned allegation stating that it is *“highly absurd and unfair.”* Arshad Malik the CEO is under the suspension as per the Sindh High Court order.
According to the PIA representative, Avionic Solutions has extensive military and commercial avionics expertise along with experience in the technical support area. According to him, the company has been in collaboration with many local and international aviation organizations.
Avionics Solutions is directed by Khwaja Moizuddin, his daughter, and his wife. At the time of participation, Avionics did not even file for a single tax return, had no auditor for its accounts, and also did not publish an annual report.
The spokesperson of PIA initially quoted that the tender winning IT Company has a great experience in the field and later changed the statement saying Terms of Reference did not specify how much experience an applying company should have. According to the representative, the amount will only be paid after the product is certified to be fit for the purpose
The three out of eight selected aircraft for up-gradation are 16-years old, two are 14-years old and the rest of the two are 11 and 12 years old link. According to the rules submitted by the Aviation Authority, no aircraft can be used after crossing 20-years of life. For example, Emirates had phased out on Boeing 777 a long time ago as the company had a policy of not using the aircraft when it reaches 12 years mark.
IFE is a digital entertainment system that is designed to entertain the passengers during flights. The system contains visual gaming and audio clips along with other features. Up-gradation and Installation of the IFE system is very technical and can only be done under the certification of European Union Aviation Safety Agency and Federal Aviation Authority of the US.