Home »Top Stories » SAPS owes Rs 2.5 billion to PCAA?
Shaheen Foundation through its project Shaheen Airport Services (SAPS) is the single handed biggest defaulter of tax payers'' money to Pakistan Civil Aviation Authority (PCAA). Official documents reveal that it is also engaged in different services other than ground handling, listing passengers and baggage handling, aircraft handling, cabin services, ground support equipment, catering services, CUTE (Common Terminal Equipment), security services, cargo and mail handling etc.

While providing the services of CUTE at four major airports, SAPS collects per passenger fee directly from airlines and as per the understanding a certain portion of the fee is paid to PCAA. However, SAPS has failed to pay PCAA from last 17 years and owes over Rs 2.5 billion. This amount includes passengers using CUTE services as well as storages in PCAA assets. SAPS being the project of Shaheen Foundation influence and pressurize PCAA, and does not pay a penny to them of their share and also does not allow them to change their ground handler for the required services.

The sources said, PCA undertook the public procurement process to procure the services from another eligible ground handler, has failed eight times due to the influence put forward by SAPS. The sources said that it is standard practice that SAPS loses a tender exercise provides wrong information. The project was initiated between PCAA and SAPS in August 2010 with the initial grant of licence for five years. SAPS initiated its services from JIAP Karachi and extended it to three other airports. SAPS duly collected the money from the passengers but failed to pay PCAA.

"Time and again PCAA has intimated SAPS to clear its dues and asked them to sign the licence agreement with letters and notices sent from January 1, 2018 till December 28, 12018. PCAA intimated and asked for payment in October 2018, November 2018. SAPS did not just threaten PCAA through its top man who is member of PCAA Board but also misguided the government officials to bring about changes in the management of PCAA, and recruiting personnel of their choice to replace employees.

SAPS and Shaheen Foundation are misusing the power of Air Force by adopting pressure tactics. Current Additional Director General of PCAA has tried to influence the BoD of PCAA by negotiating the price of services on behalf of SAPS, which if agreed will lead all the attached bureaucrats and employees of PCAA to be investigated by NAB.

> Another prime example of these pressure tactics is recent conversation between Executive Director of SAPS and PCAA as the latter gave them notice of non-payment and encashment of guarantee upon which he threatened to change the Director General of PCAA on December 28 and successfully changed the management on January 1, 2019 and COO of PIA after briefing Prime Minister Imran Khan.

"Whoever from PCAA has chased SAPS for the recovery of Rs 2.5 billion has been eradicated from the organization," said an insider.

Copyright Business Recorder, 2019


the author

I did graduation from the Government Murray College Sialkot and MSc in Psychology from the University of Punjab. I am in journalism since 1990. I worked in Daily Nawa-i-Waqt as sub editor and staff reporter in Daily Pakistan and Daily Din prior to joining Daily Business Recorder. I have been associated with this newspaper since 2000 as staff reporter. Energy Sector, Commerce / Trade and Industries are key areas of my interest. I have also the credit of exposing number of scams like Rental Power Plants (RPPs), LNG, sugar import, etc.

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