Four years on, LRH parking contractor still owes Rs5.5m

The provincial public account committee has learnt that the contractor who won the bid Rs8.2 million bid to manage the car park and cycling stand of the Lady Reading Hospital (LRH) in the provincial capital for the fiscal year 2015-16, had only paid Rs2.7 million and still owes Rs5.5 million.

The committee has subsequently directed on Wednesday to write to the deputy commissioners of the areas where the owners of the contracting firms either hail from or live to recover the outstanding sub by seizing and auctioning their properties.

This was directed during a meeting of the Khyber-Pakhtunkhwa Assembly Public Accounts Committee (PAC) in the Assembly Secretariat on Wednesday with K-P Assembly Speaker Mushtaq Ghani in the chair.

Examining audit paras from the medical teaching institute LRH for the fiscal year 2015-16, Ghani expressed his reservations over how several government departments - including the provincial health department - were not holding regular meetings of the departmental accounts committee (DAC). As a result, not only does it waste the time of the PAC and its members but has also allowed the administrative and financial irregularities in departments to increase.

He directed regular meetings of DACs. He further expressed his annoyance over the lack of preparation of department officials when appearing before the committee which wastes their time.

If DACs are held on time and the PAC works effectively, the National Accountability Bureau (NAB) or the anti-corruption establishment will not be needed, he said.

Irregularities in procuring chemicals for the laboratories of LRH were reviewed and it was noted that procuring an excessive amount had caused a loss to the exchequer. 

Ghani directed the health department to conduct a transparent probe on the matter within 30 days, affixing responsibility and sharing the report with the audit department and the PAC.

The speaker further directed that all other contracts awarded during that fiscal year and the guarantees submitted should be checked.

It was further disclosed during the meeting that during the fiscal year 2015-16, medicines worth millions were purchased locally but not on the government-approved rate. At this, Ghani again directed the health ministry to conduct a transparent probe, affix responsibility and submit a report to the committee within 30 days.

Another probe was ordered over reports that some of the machines operating at the hospital and some X-ray machines procured were in fact 20 years old.