They reportedly hired an executive despite a ‘clear violation’ of the company’s HR rules
The former managing director and HR director at Pakistan International Airlines (PIA) were arrested this week on the charge of ‘illegal hiring’.
Pakistan’s Federal Investigation Agency (FIA) have accused both of a “clear violation of PIA HR rules” after appointing a deputy managing director in 2009 on a fat pay packet and perks. The deputy has also been arrested.
The deputy’s exorbitant salary and benefits had allegedly led to huge losses at the airline.
According to an investigating officer, the deputy received a monthly pay of US$20,000, instead of the local currency. Upon his hire, they paid for his stay at a five-star hotel for three months, reported Dawn news.
His family’s accommodation in Dubai was also expensed to the airline.
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The ‘illegal appointment’ caused the airline to lose between $3.7million to $4.6million, said FIA Deputy Director Abdur Rauf Shaikh.
The execs were arrested after an inquiry that discovered violations against a formal PIA Act made upon the deputy’s appointment. Reports found that the executives did not conduct due process to hire the deputy, such as job advertisements or the consideration of other candidates.
It was also found that HR had failed to conduct a proper process or research into a fair market-based salary for the role.
Pakistan International Airlines is the country’s national flag carrier under the government’s administrative control, and it has been protected under the legally-binding PIA Act since 1956.
