Irregularities of Rs1804m detected in kidney institute

PESHAWAR: Serious irregularities and misappropriation of Rs 1804 million have been detected in the audit report of the Institute of Kidney Diseases (IKD) Peshawar from 2018 to 2020. The Director Genral Audit Khyber Pakhtunkhwa as prepared 30 advanced audit paras in February 2021 and submitted its report. The lapse occurred due to weak internal controls over the affairs of management of the institution. Audit recommends the matter to be enquired at an appropriate level for fixing responsibility, recovery of the loss sustained to the government along overhauling the record of other procurements. The audit report also revealed illegal recruitments as opposed to merit. According to records, Dr. Nasir Orakzai was the director of the hospital at the time.

A report available with this scribe expenditure to the tune of Rs.35.118 million was incurred under various object heads but the bills/vouchers for Rs.27.490 million were available and the rest are not available, which resulted in missing vouchers valuing Rs.7.27 million.

It was further observed that a sum of Rs.16.900 million was drawn on account of Institutional Performance Allowance (IPA) and shown paid to various employees. In light of the MTI Act 2015, and approval of the government was required to have been obtained which was not done, resulting in an unauthorized drawl of IPA allowance and loss of Rs.16.900 million.

It was noticed that 512,100 OPD Chits were issued, against the same 505,200 chits that were consumed leaving a balance of 6900 OPD chits as evident from the IT wing statements/ registration counters. Accordingly, Rs.10, 104,000/- was required to have been deposited into the hospital’s reserved funds account but the hospital authority deposited Rs.7, 885,070/-, which resulted in a short deposit and loss of Rs.2, 218,930.

During the financial year 2019-20, the accounts record revealed that government residences at Hayatabad Medical Complex Peshawar were allotted to doctors, nursing staff, and other staff of the institution. On verification of record, it was observed that a sum amount of Rs.3,888,014/- was shown paid to the HMC authority on account of electricity charges of the residences occupied by employees of the institution. However, it was noticed that nominal electricity and sui-gas charges at the rate of Rs.200/- and Rs.300/- respectively per month amounting to Rs.562,000/- was deducted from 36 employees without installation of separate meters or actual recovery from the concerned occupants resulted in a loss of Rs.3,888,014/-

Similarly, Rs 59.677 million has lost to the government due to ignoring Euro converted rates for the purchase of equipment. Non-recovery of liquidated damages caused Rs 16.694 million to the exchequer. IKD ignored the lowest bidding by adopting a single stage two envelope system in the purchase of OTs, Radiology, Anesthesia, and equipment and paid to various suppliers as per the detail attached. Another irregularity was found in the delayed purchase of equipment for the hospital has caused a loss of Rs.52.784 million. Interestingly, hospital management has not deposited an amount of RS 10.390 fair pharmacy shop into institution funds. Furthermore, from 2018 to 2020 an amount of Rs 11.516 was not deposited of the canteen, car parking, and tuck-shop by management.

The audit report further revealed that wasteful expenditure on non-operationalization of modular OTs causes Rs.193.412 million losses to the institution. An amount of Rs 34.412 million was incurred due to the non-acceptance of rates in Pak rupees. The audit report further detected that management has purchased equipment of Rs 301.914 million out of ADP but could not install it and be lying in store. IKD management procured equipment at uneconomical rates and caused Rs 70.273 million to the exchequer. Similarly, management has purchase unnecessary equipment out of regular budget causing a loss of RS 22.150 million.

From 2018 to 2020, dialysis disposables were purchased at higher rates causing a loss of Rs 3.707 million to the institution. Another irregularity was found in the procurement of equipment in percentage mode of payment causing a loss of RS 5.799 million. IKD did not transfer the share of Rs 3.602 million to the government from the Sehat Sahulat program.

Similarly, non-deduction of 50% receipts from the total user charges for repair of machinery and equipment causing a loss of Rs.28.836 million. An unauthorized expenditure on account of purchase of modular operation theaters of Rs211.784 million and Rs.41.997 million incurred due to the purchase of equipment on a C&F basis. A sum of Rs.16, 468,671/- was incurred on the purchase of Tab. certain 0.25 mg and 0.75 mg from M/S.Novartis Pharma Karachi directly instead of to be purchased after adopting the open tender system for obtaining economical and lowest rates. Similarly, misuse of dialysis items causes an amount of RS 34.319 million losses to institutions. An unauthorized expenditure to the tune of Rs.459.062 million and an excess expenditure of 292.416 million was incurred under various objects. IKD caused a loss of an amount of Rs 13.950 due to less recovery of income tax, stamp duty, and other heads.