PKLI project: Forensic report blames Shehbaz for Rs3.2b loss

SC to examine contents of report on next date of hearing

ISLAMABAD: The forensic report on alleged misappropriation of fund for the Pakistan Kidney and Liver Transplant Institute (PKLI) project has identified the political interference by former Punjab chief minister Shehbaz Sharif. The interference resulted in loss of approximately Rs3.2 billion rupees.

A two-judge bench of the Supreme Court, comprising Chief Justice of Pakistan (CJP) Mian Saqib Nisar and Justice Ijazul Ahsan, on June 30 ordered the Digital Forensic Research & Services Director General Kaukab Jamal Zubairi to conduct a forensic audit of the institute.

The 43-page audit report has mainly addressed the SC’s concern about the utilisation of Rs19.5 billion, which later increased to approximately Rs23.5 billion.

It is learnt that though the bench on Thursday constituted an interim committee led by a retired SC judge, Iqbal Hameedur Rehman, to look after affairs of the project, the SC will examine contents of the report on the next date of hearing, which would be fixed after two weeks.

The audit team conducted interviews of 29 individuals including the PKLI president, CEO and head of urology Dr Saeed Akhtar.

Shehbaz, in a reply to queries, said he had no role in the functioning of the PKLI.

However, the report recommended that an investigative agency with experience in probe of white-collar crimes may investigate affairs of stakeholders including Shehbaz, the PKLI, CPG Arcorp, IDAP, SCH&ME, P&D Department, Finance Department, ZKB & Reliable JV and NESPAK.



The report said during the course of forensic examination, it transpired that unauthorised payments, misuse of resources, weak internal controls, illegal practices adopted by Punjab government on the directives of Shebaz and negligence of various government officers in Punjab’s health, planning and development and finance departments resulted in the payment of Rs20.6 billion to the PKLI.

The report reveals that during interviews it had transpired that the then CM decreased the timeline to inaugurate the project before elections to support his political campaign. The project was inaugurated before it was complete. It seems that project will be completed somewhere in 2020.

The report further reveals that Planning & Development (P&D) department has issued advices/instructions to transfer funds worth of Rs. 177 billion in last three years to various projects, including PKLI&RC, without evaluation (PC-1), adding that Planning & Development (P&D) department Punjab may be held responsible for risking billions of rupees worth of public money for various projects

It said the CPG Arcorp JV designed the project to be completed in 36 months, but the then CM interfered with the project and decreased the timeline to 14 month. This resulted in increased overhead expenses by 15% to be included by the CPG Arcorp.

Nespak also received another 5% for the special project vehicle (SPV), a term with no legal explanation.  It was created to pay an allowance to the project management companies for fast-track projects.

“It seems that the then CM used the project to satisfy his political goals and to inaugurate it in his term.  The president of PKLI&RC and its board of governors also approved the revised timeline and thus billions of rupees were lost due to apparently careless actions taken without any planning. There is an estimated loss of approximately Rs3.2 billion rupees due to these actions,” said the report.