PHC pauses action in ATH scam

Interim relief granted to accused officials amid high-stakes accountability probe

ABBOTTABAD:

The Peshawar High Court (PHC) has granted interim relief to several petitioners in a high-profile financial irregularities case concerning Ayub Teaching Hospital (ATH), restraining the authorities from taking any adverse action against them until further orders.

The interim order was issued by a bench comprising Justice Abdul Fayaz and Justice Aurangzeb during the hearing of four writ petitions. The court directed the respondents to file their comments and fixed April 15, 2026, as the next date of hearing.

Six officials - including a former hospital director - facing major penalties have challenged show-cause notices through writ petitions (Nos. 513-A, 514-A and 528-A of 2026).

The petitioners argued that the MTI Disciplinary Regulations 2025 could not be applied retrospectively to alleged events of 2023. They further contended that the inquiry committee was improperly constituted and that the proceedings breached established principles of natural justice.

The case stems from alleged financial irregularities initially estimated at Rs930 million during the tenure of the interim administration at ATH. A subsequent fact-finding inquiry found prima facie evidence of wrongdoing, prompting the Board of Governors (BoG) of Ayub Medical Teaching Institution to initiate formal proceedings under the applicable disciplinary regulations.

A formal inquiry committee, headed by senior academic Prof Dr Irum Sarwar (BPS-21), and comprising senior officials from finance, administration and the health department, was constituted to investigate the matter. Official records indicate that the alleged irregularities later expanded to Rs1.37 billion, largely linked to procurement-related transactions.

At its 117th meeting held on March 15, 2026, the BoG approved the findings of the inquiry committee and resolved to proceed against those held responsible.

Subsequently, on March 17, 2026, the BoG issued show-cause notices to 16 officials. Of these, 10 face major penalties - including possible dismissal and financial recovery - while six others may face minor penalties, depending on the extent of their alleged involvement.

Among those served notices is Dr Ather Lodhi, former Acting Director and Principal Accounting Officer of ATH. The notice, issued by BoG Chairman Dr Abid Jameed, cites allegations of inefficiency, misconduct under disciplinary regulations, unauthorised financial benefits and irregular allowances. The accused have been afforded the opportunity to submit written responses and request personal hearings prior to any final determination.

Authorities have rejected the petitioners' claims, maintaining that proceedings were initiated in 2024 under previously applicable rules and were lawfully transitioned to the current regulatory framework. They assert that the inquiry committee was duly constituted and that all accused individuals were provided adequate opportunities to present their defence, including hearings and submission of evidence.

Following the High Court's interim relief, disciplinary proceedings against the petitioners have been temporarily suspended. The case is being regarded as one of the largest accountability actions within the MTI system in Khyber -Pakhtunkhwa.