Shaheen Foundation (Urdu: شاہین فاؤنڈیشن) is a welfare foundation of the Pakistan Air Force. Shaheen Foundation works in different sectors ranging from education to aviation.[1]
History
Shaheen Foundation was founded in 1977 by the Pakistan Air Force under the Charitable Endowments Act of 1889, with an initial investment of Rs 5 million, about half of which was provided by the Government of Pakistan.[2]
In 1995, Shaheen Foundation founded Shaheen Insurance in a joint venture with a South African insurance company, Hollard Group.[4] Later, Hollard's management was dissatisfied with the investment, citing corruption as a major impediment to their investment's success.[4]
Later, Shaheen Foundation established the radio channel FM-100 and the satellite television network SB Pay-TV, with the help of Asif Ali Zardari, and his close aide.[5] In 2000 the foundation filed a legal complaint with the Securities and Exchange Commission of Pakistan under section 263 of the Companies Act, alleging violations of the agreement terms by a major shareholder.[5][6]
^Brömmelhörster, Jörn; Paes, Wolf-Christian (2004). The Military as an Economic Actor: Soldiers in Business. Palgrave Macmillan. pp. 127–128. ISBN9780333999288. The first to respond was the PAF. It established the Shaheen Foundation in 1977 under the Charitable Endowments Act 1889, with an investment of Rs 5 million (half of which was donated by the PAF and the reminder by the Federal Government).
^Brömmelhörster, Jörn; Paes, Wolf-Christian (2004). The Military as an Economic Actor: Soldiers in Business. Palgrave Macmillan. p. 138-139. ISBN9780333999288. From a financial standpoint, the biggest project is the Shaheen International Airline (SAI). However, the venture was mismanaged due to the highly bureaucratic policies of the Shaheen Foundation's management. As a result SAI lost about Rs 60 million from December 1999 to May 2000 alone. This was in addition to the Rs 70 million it owed to the Civil Aviation Authority for the services provided during this period. The situation in the initial days of the airline's operations was even worse. Some sources attributed this to the mismanagement of the 50 per cent fare discount offered to retired and serving military officers. The fact that the aircraft, which were on 'wet' lease, were limited in number added continuously to the company's operating costs.
^ abBrömmelhörster, Jörn; Paes, Wolf-Christian (2004). The Military as an Economic Actor: Soldiers in Business. Palgrave Macmillan. p. 139-140. ISBN9780333999288. The insurance company Shaheen Insurance was founded in 1995 with a view to establishing a partnership with a South African insurance company, Hollard Insurance Ltd. A partnership was finally worked out in 1997, with Hollard owning a 30 per cent share. The South African company was disappointed by the results, however. Its management felt that corruption was a big problem that dampened the prospects of their investment. It is interesting to note that the deal was brokered by an acting Air Force officer who, after retirement, got a job in the company. The South Africans asserted that the deal was negotiated on a one-to-one basis with the officer involved.
^ abBrömmelhörster, Jörn; Paes, Wolf-Christian (2004). The Military as an Economic Actor: Soldiers in Business. Palgrave Macmillan. p. 141. ISBN9780333999288. The most prominent cases pertain to SF's radio channel FM-100, its satellite television, SB Pay-TV and BF's Bahria Housing Scheme. In the first two cases, former prime minister Benazir Bhutto's husband and his close aide were linked with the projects. They were dubious deals that resulted in losses for the SF. The foundation finally took the case to the Securities and Exchange Commission under section 263 of the Companies Act against the major shareholder, accused of violating the basic rules of the agreement (Dawn [Karachi], internet edition, 7 December 2000). The case is still under legal review.
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