By Aarti Tikoo Singh
New Delhi/Islamabad, June 30 (IANS) In a major setback to Islamabad, the European Union has suspended Pakistan International Airlines (PIA) for six months over its fake pilot licence scandal.
In an official letter, the European Union Aviation Safety Agency (EASA) said that though the PIA claims that it has grounded all pilots that were part of the list of fraudulent licence holders compiled by the Pakistani authorities, it does not mitigate its concern, as there are strong indications that a high number of Pakistani pilot licences are invalid.
"EASA therefore no longer has confidence that Pakistan, as the state of operator, can effectively ensure that operators certified in Pakistan comply at all times with applicable requirement for crew qualification," in particular with the standards laid down in the Chicago convention.
The agency conveyed its decision to the PIA saying that in accordance to the laws of the European Parliament and Council, the EASA suspends the Third Country Operator (TCO) authorization to PIA which had been issued on May 17, 2016. The suspension comes into effect from July 1, 2020 in all the EU member states.
In its list of reasons for the suspension of the airlines, the EASA cited the fact that despite enough time, the PIA was yet to ensure safety data management, risk assessment and analysis including the statistical analysis and the ability to identify repeated or similar hazards/occurrences. The EASA said PIA had provided insufficient evidence about the implementation of safety measures and since December 2019 had not been processing its safety reports.
The PIA, according to the EASA, had failed to develop extended guidance to facilitate the understanding and the application of the management of change and training for the involved staff. The EASA said that the PIA had submitted documents related to the measurement of Safety Performance Indicators (SPI) which revealed that some of the SPIs were controlled by different departments with different target settings.
The letter said the PIA provided evidence of the correction of the calculation errors of the SPIs for the 2018, where EASA found some major inconsistencies, and even illogical, for instance the input for the SPIs are performed in flight hours, but the formula calculates number of landings. The submitted corporate SPIs do not contain all indicators measured by the department themselves," the letter said.
"Following the tragic events that PIA has faced, including flight PK8303 on May 22, 2020 and the initial findings laid down in the preliminary accident report showing successive breaches of multiple layers of safety defenses in the safety management system, EASA is concerned that the safety management system is not achieving its primary objective," the EU agency said.
The PIA has the right to appeal against the decision within two months from now. The EASA also has the right to extend the suspension of the airlines for additional three months after the six month suspension period is over, if it is not satisfied that successful corrective action has been taken by PIA.
Mumbai, July 10 (IANS) State-run Punjab National Bank (PNB) has reported a borrowal fraud of Rs 3,688.58 crore in the NPA account of the now bankrupt Dewan Housing Finance Ltd (DHFL).
In a regulatory filing, the bank said that it has already made provisions amounting to Rs 1,246.58 crore.
"A fraud of Rs 3,688.58 crore is being reported by the bank to RBI in the accounts of the company (DHFL). Bank has already made provisions amounting to Rs 1,246.58 crore, as per prescribed prudential norms," it said.
Several other banks have already declared DHFL as a fraud account.
Last November, the Reserve Bank of India (RBI) superseded the Board of Directors of the company and appointed an administrator and accordingly, the board powers were vested in the firm's administrator.
Further, the Mumbai-bench of the National Company Law Tribunal (NCLT) at Mumbai commenced the CIRP against the company in December, following an application by the RBI.
The company reportedly has debt of around Rs 97,000 crore and has allegedly siphoned off Rs 31,000 crore from the total bank loans.
Its promoters Kapil Wadhawan and Dheeraj Wadhawan were arrested by the Central Bureau of Investigation in April.