All PALPA Members السلام عليكم
As President of PALPA, I wish to inform the membership that the re-audit of accounts has been successfully completed. This communication is particularly intended for those members who were unable to attend the briefing session held on 17th February 2026 at the PALPA Auditorium. I sincerely appreciate the members who attended the detailed presentation by Mr. Altaf Noor Ali, Chartered Accountant, briefed the house on the re-audit report for the year ended 30 June 2023.
The Auditor has reaffirmed the limitations in the financial statements as of 30 June 2023, which had previously been audited by another firm. In addition, the re-audit has identified several material matters that were not addressed in the earlier audit.
To highlight one of the matters identified, the report reviews the funds collected from pilots for the acquisition of land in Islamabad, as approved at the AGM held on 4th November 2013. Members contributed PKR 2 crore 23 lacs 60 thousand under a clear AGM resolution that the amount be maintained in a separate bank account and utilized exclusively for the purchase of land in Islamabad. It has been observed that, during a meeting held on 9th December 2020, the then Executive Committee utilized this fund in violation of the AGM mandate.
Similar observations have been recorded in relation to the Pilot Welfare Fund. Furthermore, payments amounting to Rs. 8.510 million have been identified for which no supporting documentation is available.
The re-audit also indicates a strong likelihood that cash collected from events held at PALPA Lawns and guests residing at PALPA House was not properly accounted for, this concern is further compounded by an incident involving the diversion of official funds into a personal bank account by a former employee. Serious concerns/objections have also been raised by the Government functionaries for not conducting the audit periods ending 30 June 2024 and 30 June 2025.
The report concludes that the financial affairs of PALPA were not managed in accordance with the accepted governance and accounting standards. Fiduciary responsibilities were not effectively discharged during the relevant period. Instances of incorrect accounting practices have also been highlighted.
In compliance with the resolution adopted at the AGM dated 15th November 2025, directing a re-audit of the accounts for July 2022 to June 2023, the present Executive Committee took timely corrective action by commissioning the re-audit, we now have documented evidence enabling us to proceed appropriately in addressing the identified irregularities. It is essential that the general membership is taken into confidence.
The forensic audit covering the five-year period from July 2021 to June 2025 remains pending and will be concluded upon completion of the statutory audits for the years ending 30 June 2024 and 30 June 2025.
The report points to institutional weaknesses, lack of transparency in the management of PALPA affairs, and instances of preferential treatment in financial matters. The delay in conducting statutory audits for the years ending 30 June 2024 and 30 June 2025, and the non-holding of AGMs over the past two years, despite this being mandatory requirement, reflect serious governance deficiencies that must not recur.
Misuse of authority, discriminatory practices, and arbitrary decision-making undermine institutional harmony and foster conditions conducive to corruption. When legal, moral, and organizational norms are routinely disregarded, the Association risks becoming dysfunctional. The absence of effective enforcement and accountability mechanisms inevitably cultivates a culture of impunity, arrogance, and institutional decline.
Those who assume office under oath bear a fiduciary and constitutional responsibility to uphold the Constitution as a sacred trust, to faithfully discharge their assigned duties, and to refrain from acting beyond the constitutional framework. No unlawful act becomes legitimate merely through repetition, nor can irregular practices be normalized as standard operating procedure. Our collective obligation is to act objectively, transparently, and at all times in the best interest of the Association.
With Best Regards,
Capt (Retd) Haroon Abdullah
PRESIDENT