PIA issues clarification over the misunderstanding created by CEO’s statement

November 26, 2019 (MLN): Pakistan International Airlines Company Limited has issued a clarification on the ‘inadvertent’ remarks made by its Chief Executive Officer over the recent performance of the company.

In a detailed notification issued to the Pakistan Stock Exchange on Tuesday, the company informed that the ‘PIACL Management regrets any misunderstanding that might have been created by Statement of CEO about the affairs of PIA as quoted in print media on November 9, 2019.’

‘Though the statement was based on management accounts, yet, its non-dissemination to PSX could be termed as an inadvertent overlook and nor an intentional non-compliance’ the notice read.

For the unversed, the CEO of PIA Air Marshal Arshad Mahmood Malik had claimed that the monthly operational losses of the company had been reduced to Rs. 1.5 billion as compared to more than Rs. 3 billion suffered by the airline every month. He accredited this curtailment in losses to the PIA team, who according to him, had put in a tremendous amount of effort to revive the national flag carrier.

As per the media reports, these remarks paved the way for several allegations against the company, with regulatory authorities such as SECP accusing it of ‘attempting to manipulate the stock market’. The reports further claimed that the SECP Board had called for an investigation against these claims, and legal action to be taken lest these claims lacked authenticity.

Taking a serious note of these allegations, the company further went on to say: “PIACL besides being a public sector company, is a public limited, public interest company. It is a law-abiding corporate citizen of Pakistan and has been alive to its social responsibility particularly towards its valued shareholders. About a year back, it underwent an important Management change with a view to revamp and revitalize it. Both the Government of Pakistan as well as the interested public have a lot of expectations from it. The new Management team with untiring and dedicated efforts right from the word ‘go’ has set the airline in the right direction and has started journeying towards success.”

“About the statement of CEO regarding achievements in PIACL brought about by the current Management in the past one year, future plans, and challenges as quoted in some print media, it was made out to the general public in good faith to gain their confidence in their national flag carrier and dispel any negativity and concerns associated with their trusted brand” the statement added.

“It may be mentioned that the non-finalization of our company’s Annual Accounts since FY2017 remained a legacy issue and due to the extra efforts of the current Management, Annual Accounts for FY 2017 have been finalized and Annual General Meeting 2017 was held on August 24, 2019. The Annual Accounts for FY 2018 have been approved by the Board and communicated to PSX through PUCARS on November 22, 2019. Annual General Meeting 2018 has already been scheduled for December 21, 2019” it further added.

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Posted on: 2019-11-26T17:48:00+05:00

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