SESSI made 'doubtful' medicine purchases

PAC orders audit into Rs9b annual drug procurements

KARACHI:

The Sindh Assembly's Public Accounts Committee (PAC) has ordered a full audit into the procurement of medicines worth Rs9 billion annually by the Sindh Employees Social Security Institution (SESSI), amid complaints of large-scale irregularities, substandard supplies, and misappropriation of public funds.

The decision came during a PAC meeting held on Wednesday under the chairmanship of Nisar Khuhro. The committee reviewed SESSI's audit reports for the fiscal years 2018 and 2019. Senior officials, including Secretary Labour Rafiq Qureshi and SESSI Commissioner Miandad Rahujo, were in attendance.

During the session, Khuhro expressed concern over the massive annual expenditure on medicines despite persistent complaints from workers and health staff about the supply of low-quality drugs and outdated machinery at SESSI hospitals.

SESSI Commissioner Rahujo informed the committee that the institution operates seven major hospitals and 42 dispensaries across the province, including Walika Hospital, Landhi Hospital, and the Kidney Centre. These facilities serve industrial labourers and SESSI-registered employees.

He stated that out of SESSI's Rs13billion annual budget, 70% — around Rs9billion — is spent on medicine procurement and healthcare services. The remaining Rs4billion is allocated to field directors.

However, the PAC was told that only 70% of the medicine procurement follows formal tendering procedures, while the remaining 30% is purchased locally by directors, where most complaints and irregularities reportedly originate.

Khuhro directed that a comprehensive audit be conducted to examine the entire procurement process, particularly the Rs9billion spent annually on medicines. He stressed the need for transparency and accountability in the use of public funds.

The commissioner added that Hospital Management Committees had been formed to oversee hospital operations, and the SESSI Governing Body had recently approved a Rs1.4billion project to upgrade and reconstruct Walika Hospital. Construction is expected to commence within a year.

Separately, the PAC raised serious concerns about violations of minimum wage laws across the province. The PAC chairman cited disturbing figures that nearly 80% of private industrial units are not paying the government-mandated minimum monthly wage of Rs37,000 to workers.

When asked about compliance, Commissioner Rahujo revealed that out of 67,000 industrial units in Sindh, only 24,000 are registered with SESSI. Of these, 6,000 are non-operational and 18,000 are functional, collectively employing about 800,000 registered workers. He admitted that many units, including private security firms, fail to pay the full minimum wage.

Calling it a "blatant violation of labour laws," Khuhro directed the Labour Department and SESSI to take immediate steps to ensure all workers receive the legal minimum wage, and to launch strict enforcement actions against defaulting units.

The committee also turned its attention to internal issues within SESSI, particularly staffing and fraudulent appointments. Khuhro questioned the number of employees, the legitimacy of their hiring, and the attendance system in place.

Commissioner Rahujo reported that SESSI currently employs 4,200 staff and has implemented a digital attendance system. He confirmed that several people hired on the basis of fake degrees had been dismissed after verification.

In another damning disclosure, it was revealed that Rs50million had been siphoned off through fraudulent billing under the guise of repair works at SESSI facilities. The PAC ordered the Labour Secretary to conduct a detailed inquiry into the matter and submit a comprehensive report on the financial irregularities.

Khuhro stressed that institutional reforms and strict oversight are essential to protect workers' rights and public resources. He reaffirmed that it is SESSI's core responsibility to serve the working class with transparency, efficiency, and integrity.