Irregularities found in medicine purchase

Committee formed by Khyber-Pakhtunkhwa government to probe into alleged irregularities in medicine procurement under the caretaker government has detected irregularities of Rs1.8 billion.

It has completed and submitted its report to chief minister.

Official sources told The Express Tribune that the committee on alleged irregularities in the purchase of medicines in the health department during the caretaker provincial government completed its report and submitted it to the Chief Minister with its recommendations.

The report has revealed various irregularities related to the medicine procurement. As per the report, embezzlement of Rs1.9 billion has been identified in the procurement of medicines worth Rs4.4 billion.

Purchases worth Rs1.86 billion were deemed unnecessary and involved non-emergency items for which no demand existed.

Moreover, medicines and medical supplies worth Rs3.17 billion were distributed to a limited number of centres, with supplies worth Rs1.08 billion being allocated to only six medical facilities.

The report also stated that a huge shipment of medicines and medical items, including gowns, condoms, disposable OT sheets, and gloves, was unnecessarily delivered to the District Health Officer (DHO) in North Waziristan.

In the beginning, 81 firms were shortlisted for procurement, but medicines were finally purchased from only 14 firms. Most of the procurement was made without inspection, which resulted in the distribution of substandard medicines to the public.

Additionally, drug testing reports were ignored prior to delivery and payment. Medicines worth Rs50 million were purchased from a pharmaceutical company known for manufacturing of substandard medicines.

The report further highlighted that the procurement and distribution plans were found to be missing from records, resulting in unnecessary purchases that caused financial losses to the provincial exchequer.

The report also pointed out excessive and unnecessary transportation costs, with unrelated institutions being used for processing bills.

Purchase orders exceeded allocated estimates, further burdening the treasury. Medicines were purchased at rates 10 per cent to 45 per cent higher than their retail prices instead of factory rates.