Pakistan

AGP report 2011-12: Irregularities worth Rs172.7m detected in PIMS accounts

Only 25% completed work of Quaid-i-Azam Medical College, while management paid Rs 86.201 million to the contractor

June 24, 2012

ISLAMABAD:

An audit report has pointed out Rs172.697 million in financial irregularities in books of the Pakistan Institute of Medical Sciences (Pims) in 2011-12.

Of the total amount, the report said that the Pims management spent Rs23.391 million on repair and maintenance on the Liver Transplant Unit without an open bid. Moreover, the Executive Director also split the contract work into 53 parts, in violation of the rules. The management explained the irregularity by saying that the work was awarded to a prequalified contractor due to unsatisfactory repair work by Pak-PWD.

The auditors also pointed out that Pims made payments of Rs5.043 million to NESPAK in March 2007 for consultancy services for the preparation of a PC-1 and supervision of a medical tower project. Having its PC-1 approved in 2007, the project has still not started. Instead, another project for the upgradation and improvement of facilities at Pims was started and the old project abandoned, resulting in the consultancy fee being wasted.

In another instance, Pims started construction of Quaid-i-Azam Postgraduate Medical College at a cost of Rs87 million. Till 2008, even though the contractor had only completed 25% of the work, the management had paid Rs 86.201 million to the contractor, or 99% of the total cost.

The audit observed that six 1600cc vehicles were in the Pims general transport pool but were actually in the use of individuals. Vehicles listed for standby use had also covered thousands of kilometres, resulting in a loss of Rs658,000.

The audit revealed that the Pims management had opened 33 bank accounts at the National Bank of Pakistan Pims Branch without approval from the Finance Ministry, while 17 of the accounts were listed as inoperative. The audit report said that any funds received in these accounts are not accounted for in the hospital’s books and are susceptible to misappropriation.

Other anomalies detected by the audit are non-recovery of rent, utility charges and fines worth Rs10.103m from different shops and cafeterias.

Published in The Express Tribune, 25^th, 2012.