Probe uncovers 'corruption' at ATH
An inquiry into procurement activities at Abbottabad Ayub Teaching Hospital (ATH) has uncovered significant violations of procurement rules, leading to a financial loss of Rs1.355 billion to the national exchequer.
The investigation, conducted by a high-level inquiry committee, has raised serious concerns about systemic corruption, collusion, and fraudulent practices within the hospital's procurement process during the fiscal year 2023-24.
The inquiry, led by Professor Haq Nawaz and a team of experts including Sona Khan, Asad Khan Jadoon (Advocate), and Umer Abbasi, was initiated in response to allegations of widespread fraud and abuse of authority.
As per the report, available with The Express Tribune, multiple senior officials were involved in manipulating procurement processes to benefit specific companies and individuals.
According to the 71-page inquiry report, several discrepancies were identified, including the submission of fake bids, forged documents, and manipulated technical evaluations to award contracts to ineligible firms.
One of the most troubling revelations was the inflated pricing of critical items, such as pharmacy supplies and IT equipment, which were purchased at rates significantly higher than the market value due to the absence of mandatory market surveys.
"Procurement violations include unjustified tender re-advertisements, uneconomical local purchases, fake and forged documents, inflated prices for critical items, inflated payments for surgical items, and interconnected fraud.
The report also revealed that blank contracts were signed by the former hospital director, allowing for arbitrary adjustments that favoured specific firms, further indicating institutional fraud.
The inquiry committee found multiple senior officials, including the former hospital director, pharmacist, IT director, and procurement director, directly responsible for the misuse of authority and fraudulent activities.
It recommended that these officials be removed from service under the MTI Abbottabad Efficiency and Discipline Regulations 2023. Criminal proceedings are also suggested to recover Rs. 208.8 million in identified losses.
The inquiry found that the former hospital director played a central role in bypassing established procurement procedures.
He facilitated the direct procurement of medicines and surgical disposables without the involvement of the procurement department, violating KPPRA rules.
Moreover, Rs180 million was paid to ineligible firms due to their submission of fake documents, which were overlooked by the hospital's administrative staff. The inquiry also criticized the lack of proper supervision and control, stating that the former director's inefficiency contributed significantly to the financial mismanagement.
The inquiry committee has called for several reforms to prevent future fraud and mismanagement, including strengthening procurement oversight through third-party audits, mandatory market surveys, and digitising document verification processes.
It also recommended restricting the re-appropriation of funds without the board of governors' approval and conducting forensic audits by external agencies to quantify the full extent of the embezzlement.