ACE probing large-scale embezzlement in SESSI

KARACHI: The Sindh Anti-Corruption Establishment (ACE) continues its investigation into the alleged embezzlement of public funds, corruption in the purchase of medicines, questionable deal over Benazir Mazdoor Cards against officers of the Sindh Employees Social Security Institution (SESSI) on the direction of the Sessions Court, South, Karachi.

Complainant Nizakat Hussain had filed an application with the Sessions Court, South Karachi complaining about the role of the Sindh Anti-Corruption Establishment (ACE) for not investigating his complaint. He later withdrew his complaint, but the court directed the Sindh ACE to continue its investigation by disposing of the petition of Nizakat.

As per the official record accessed by The News, an investigation of the Sindh ACE was initiated against senior officers of the SESSI including director administration, director procurement, medical advisor, director vigilance and audit, director audit, director finance, deputy director site, social security officer, medical superintendent KVSS Hospital, accounts officer and others in 2015 on different allegations but it remained pending. In 2023, Nizakat Hussain and Muhammad Ahmed provided evidence of corruption and demanded the ACE authorities in writing to finalize the probe.

In the first week of May 2023, Circle Officer (CO) of the ACE Abdul Hafeez Jatoi submitted a detailed report along with documentary evidence of alleged corruption and misuse of authority to the Chairman of the Enquiries and Anti-Corruption Establishment. Later on May 11, 2023, CO Abdul Hafeez Jatoi along with a team of ACE paid a surprise visit to the SESSI head office.

According to the Final Confidential Report (CFR) of the Sindh ACE, an officer of the SESSI Deputy Director Asad Haider Abdi recorded his statement and cooperated with the ACE team and identified the record of the audit and other issues. Haider voluntarily submitted his written statement at the ACE office and revealed several allegations of wrongdoings and corruption of the SESSI officers.

On the contrary, the other staff of the SESSI including the director of administration not only misbehaved with the team but also created hurdles in their official duties. They confined the ACE team and harassed them. Despite this, the ACE team managed to obtain the official record of alleged corruption. The ACE CFR claims embezzlement of millions of rupees in the purchase of medicines, especially cancer medicines in violation of Sindh Public Procurement Regulatory Authority (SPPRA) rules.

The ACE found that one of the accused officers initiated a permission procedure to the head office for purchasing cancer medicines. While he showed the generic names of the medicine against very high rates, he instead imported substandard medicines from Turkey and India against very low rates in the financial year 2020-21.

Besides, the management of SESSI sold important documents of the department with malafide intent by showing them as “waste papers” and did not even deposit the amount in the accounts of the department, the CFR mentions.

The ACE also found that in January 2013, SESSI reached an agreement with NADRA for the Benazir Mazdoor Card in violation of the rules of the institution. An amount of Rs 516 million was paid in advance without any bank securities or bank guarantees against the contract agreement. Also, the management without the approval of the governing body approved the cost of Rs 1,600 per Benazir Mazdoor Card which is very costly. In this regard many times supplementary grants were issued. As many as 65 lakh workers are registered with SESSI all of whom were liable for the Benazir Card, but only 60,000 cards were issued to date. The project which had started on January 1, 2021 was required to be completed within two years. The ACE inquiry report also blamed the purchase of precious properties by a senior officer of the SESSI against his known sources of income.

Since the accused included senior officers, the Sindh ACE recommended an inquiry into large-scale corruption, misuse of authority, and embezzlement of public money against 13 senior officers of SESSI and entrusting the inquiry with Anti-Corruption Committee One. The Anti-Corruption Committee One has now ordered an “open inquiry against the accused and further proceedings if at all would follow its conclusion.”

This reporter approached all 13 officers of the SESSI being investigated by the Sindh ACE including the spokesman of the SESSI Saif Ahmad. All the officials were called at their cell numbers, and they were sent detailed text messages on their WhatsApp numbers but despite passage of over one week they all avoided responding till the filling of the news story.

Commissioner SESSI told The News that he has recently taken charge of his position though he is aware of the court proceedings and ACE investigation. As SESSI itself was not investigating the matter on its own he was not in a position to comment on this, the Commissioner added. The “management of SESSI is waiting for the conclusion of the ACE investigation and on its completion the case will be dealt with as per rules and laws,” the Commissioner concluded.

The ACE Investigation Officer Inspector Sibghatullah Shaikh told The News that ACE is continuing its investigations under the directions of the Court. He said that the case would be dealt with merit and as per law.