20000214

PIA seeks

annulment of

IAL sale

KARACHI: The PIA is learnt to have approached the Privatisation Commission (PC) requesting that the agreement with the Employees Management Group (EMG), the buyer of International Advertising (Pvt) Limited (IAL), a former subsidiary of PIA, be revoked.

It may be mentioned here that PC had completed the privatisation process of IAL. However, transfer of shares to EMG was held-up due to a dispute regarding settlement of outstanding amount to PIA.

For transfer of ownership, a sale and purchase agreement was to be formulated and the issue concerning liquidation of PIA's aforesaid dues amounting to Rs 11.5 million required resolution prior to the said agreement.

The PC had also agreed that this matter should be settled between PIA and EMG.

According to PIA sources, despite its willingness, the EMG had not been forthcoming in accepting the mode of settlement of the outstanding liability or drawing up a time schedule for payment.

Since the matter has been lingering on and there was reluctance on the part of EMG to settle the issue, the PIA has recommended the PC to protect its interest, revoke the IAL's privatisation and retain the company as a 100 percent owned subsidiary of PIA.ÑAPP