Karachi: Pakistan International Airlines (PIA), which has been grappling with significant financial losses, reportedly handed over hotel valued at over Rs 1 billion to Sindh government for free.

Auditor General of Pakistan’s report shed light on these irregularities. According to report, it has been uncovered that transfer of Sambara Inn Hotel to Sindh government was executed outside bounds of established rules and regulations. Hotel, with an estimated value of Rs 1.15 billion, was relinquished by airline’s works department.

Audit for 2021-22 by Auditor General of Pakistan had highlighted that hotel had been transferred to Sindh government without any compensation. Department estimated construction cost of hotel at Rs 60.75 million. In response, management stated that they are pursuing matter through Aviation Division.

Auditor said that after determining responsibility, report should be submitted in audit after inquiry. Aviation Ministry should take up matter in Council of Common Interests.

Auditor said that appraiser approved by State Bank had given market value of hotel at Rs 1.15 in December 2020, whereas, possession of hotel was given to Sindh government against interest of airline on verbal instructions of senior officer to ignore commercial interests of airline.

Management replied to auditor saying that PIA is legal owner of property and has all relevant property documents, adding that possible procedures should be made possible.

Published in The Daily National Courier, October, 07 2023

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