Latest news with #Rs1.355
Express Tribune
24-02-2025
- Business
- Express Tribune
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.
Express Tribune
05-02-2025
- Health
- Express Tribune
Committee uncovers Rs1.35b scam at ATH
ABBOTTABAD: An inquiry committee constituted by the Board of Governors (BoGs) of Ayub Medical Teaching Institute (AMTI) has uncovered widespread financial mismanagement and irregularities to the tune of Rs1.355 billion at Ayub Teaching Hospital (ATH), recommending the termination of five senior officials including a former hospital director from their service and recovering Rs 208.8 million from responsible officials. The inquiry, initiated in response to allegations of systemic fraud and misuse of authority, also unearthed severe violations of procurement laws, collusion among officials, and substantial losses to the public exchequer. It also uncovered procurement violations, including fake bids and forged documents, misuse of authority by senior officials, overpayments for surgical items and medicines during the interim government period, and misuse of authority during the 2023-24 fiscal year. When contacted, BoG Secretary Professor Hamid Khan confirmed that long-awaited inquiry findings have been received, which will be discussed and followed in the next BoG meeting for further process and implementation. The committee headed by Prof Dr Haq Nawaz comprises pharmacist Sona Khan, senior lawyer and former BoG member Asad Khan Jadoon Advocate and financial expert Umer Abbasi finalised the report after a meticulous investigation, categorised involved officials into three groups based on their roles and recommended stringent administrative and legal actions, including terminations, recoveries, and criminal probes. The probe report urges the BoG to act swiftly on recommendations, recover losses, and initiate criminal probes to restore public trust. It warns that failure to address these systemic issues could lead to recurring institutional decay. The inquiry paints a grim picture of institutional malpractice at ATH, demanding accountability for those implicated and systemic reforms to prevent future abuses. The BoG faces mounting pressure to implement the committee's roadmap for transparency and discipline. Key findings of the inquiry include procurement violations, inflated pricing, misuse of authority, unjustified reappropriation and financial mismanagement. They pointed out that PPRA Rules 2014 were breached by giving favours to companies on forged documents without having NTN and bank statements while manipulating technical evaluations and awarding contracts to ineligible firms. Similarly, the inquiry report stated that pharmacy supplies and IT equipment were purchased at rates exceeding market prices due to the absence of mandatory market surveys. It further stated that Rs930m worth of purchases were illegally approved during a government-imposed ban, bypassing BoG authorisation.
