Irregularities unearthed in healthcare audit

A detailed audit report compiled by the Auditor General of Pakistan (AGP) has recently uncovered alleged staggering misappropriation of Rs161.85 million within the District Health Authority (DHA) Rawalpindi.

The Chief Minister's Inspection Team (CMIT) has taken serious notice of the financial irregularities, which reportedly involve violations of PEPRA regulations, procurement at inflated rates under the guise of local purchases, and the use of fictitious documentation — collectively causing significant loss to the public purse. In response, the Punjab Secretary for Health has been instructed to submit a comprehensive report within 10 days.

Sources reveal that medicines were procured at exorbitant prices without requisite demand across more than 100 Basic Health Units (BHUs), 13 Municipal Medical Centres, 15 Government Rural Health Dispensaries, and 6 Maternal and Child Health Centres. In many instances, deliveries were documented only on paper, with no actual supply taking place.

Furthermore, stationery, printing materials, and other administrative items were allegedly acquired at inflated costs, often in collusion with favoured vendors, with procurement processes bypassing standard regulatory procedures.

The audit further highlights that instead of making economical bulk purchases, medicines and medical equipment were acquired in fragmented quantities at inflated rates through manipulated quotations. In some cases, officials are accused of establishing shell companies to facilitate these transactions.

The report attributes significant responsibility to the former Chief Executive Officer of the DHA. Alarmingly, during the course of the inquiry, no records could be produced for transactions amounting to Rs8.96m.

The matter is currently under review by the Punjab Public Accounts Committee. However, despite the formation of multiple inquiry committees over time, none have completed their investigations, as they were routinely dissolved before reports could be finalised.

An initial inquiry committee in 2023 had recommended the recovery of Rs66.26m and disciplinary action under the PEEDA Act against those found responsible. That committee was subsequently disbanded, with new ones formed in its place - none of which have yet delivered conclusions.

According to sources, the scope of the ongoing investigation covers procurements made between the 2019-20 and 2022-23 financial years, during which serious and systemic irregularities have come to light.