ISLAMABAD: A recently released report by the Auditor General of Pakistan (AGP) identified irregularities worth Rs3.41 billion in various ancillary departments of the Ministry of National Health Services (NHS), officials said on Thursday.
The report, available with Dawn, found fraud, embezzlement and misappropriation amounting to Rs28.41 million, procurement‑related irregularities worth Rs1.779 billion, and irregularities in the management of accounts held with commercial banks involving roughly Rs1.484 billion. Rs127.27 million was recovered after the audit department intervened.
Pakistan Nursing Council
According to the report, the Pakistan Nursing and Midwifery Council (PNMC) declined an audit of its accounts, contravening a Supreme Court order issued on 8 July 2013.
In response to audit notices, the PNMC cited letters dated 31 March 2023, 15 May 2024 and 21 May 2025, stating that it was an autonomous body that generated its own revenue through various activities and received no government grants.
The matter was reported to the secretary of the Ministry of NHS, who directed the PNMC to supply all auditable records. However, the report says the records were not provided by the council’s management.
The audit concluded that “the stance taken by the management is in violation of the orders of the Supreme Court of Pakistan and attracts Section 14(3) of the AGP Ordinance, 2001.” It added that because the PNMC is established and controlled by the federal government, it falls under the audit jurisdiction of the AGP.
The audit recommended that disciplinary action be taken against the officers who obstructed the AGP’s functions and defied the SC’s order, and that the required records be provided.
Federal Directorate of Immunisation
The audit also found that vaccine procurement was carried out at higher rates due to non‑compliance with a federal cabinet decision, resulting in an impact of Rs1.109 billion.
Under Section 21 of the PPRA Ordinance, 2002, the Public Procurement Regulatory Authority (PPRA) granted an exemption for the procurement of EPI vaccines from the Public Procurement Rules, 2004, in line with a cabinet decision dated 23 November 2016, the report noted.
Rule 38 B(2) of the Public Procurement Rules, 2004, states that the procuring agency shall make a decision with due diligence and in compliance with general procurement principles such as economy, efficiency and value for money, the audit said.
It noted that the Islamabad Federal Directorate of Immunisation (FDI) purchased Pentavalent and Tetanus‑Diphtheria (TD) vaccines through open competition, incurring an expenditure of Rs3.233 million during the fiscal years 2022‑23 and 2023‑24.
Human Organ Transplant Authority
The audit further revealed that Islamabad’s Human Organ Transplant Authority (HOTA) retained Rs38.782 million of public funds in a current bank account after the financial year ended.
Clause 37(1) of the Public Financial Management Act, 2019, stipulates that “revenues collected by an autonomous entity, which arise from any Act or statutory instrument of the Federal Government, shall be deposited in the Treasury Single Account (TSA).”
Clause 4(3) of the Cash Management and Treasury Single Account (TSA) Rules, 2024, states that bank accounts opened before the rules took effect were to be jointly reviewed by the finance division and the concerned division, with non‑essential accounts closed and their balances transferred to the Federal Consolidated Fund or the Public Account as prescribed in the Federal Treasury Rules.
The audit observed that HOTA maintained a balance in a current account at the National Bank of Pakistan as of 30 June 2024.
“The account has not been reviewed or closed in accordance with Clause 4(3) of the Cash Management and TSA Rules, 2024, nor has the balance been surrendered to the Federal Consolidated Fund,” the audit pointed out.
The unauthorized retention of public funds outside the TSA “undermines the principles of centralised cash management and fiscal transparency … and violates statutory requirements, and increases the risk of mismanagement or misuse of public money,” it stated.
HOTA replied that the account had been maintained with the Finance Division’s approval since 2013. The audit, however, called the reply “not tenable,” stating that the promulgation of the Public Financial Management Act and the Cash Management and TSA Rules superseded earlier administrative practices.
The audit recommended that HOTA immediately initiate a joint review of the current account with the Finance Division in line with the TSA Rules, and take prompt action to transfer the retained balance to the Federal Consolidated Fund or the Public Account.
Polyclinic Hospital
Irregularities worth Rs508.4 million were also found in the procurement of drugs and medicines by Polyclinic Hospital.
Paragraph 11 of GFR, Vol‑I, states that each head of a department is responsible for enforcing financial order and strict economy at every step. He is responsible for observance of all relevant financial rules and regulations both by his own office and by subordinate disbursing officers, it stated.
During FY24‑25, the hospital’s management incurred expenditure on the procurement of drugs, medicines (including tablets, syrups, injections and surgical consumables) on a “local purchase” basis from an Islamabad pharmacy. The audit observed that there was no government‑approved policy for procuring drugs, medicines and surgical items on a local purchase basis.
The report said that records of requisition and demand slips from different hospital wards for the procurement of these items were not maintained by the FGPC, and that patient‑wise records of receipt and issuance of locally purchased drugs, medicines and surgical consumables were not available with the hospital management.
Other irregularities
The report also identified irregularities worth Rs15.174 million and the unauthorized procurement of MRI software worth $0.35 million at the National Institute of Rehabilitation Medicines.
At Lahore’s Sheikh Zayed Medical Complex, it identified “fraudulent” payment of the consultant’s share amounting to Rs28.41 million and the irregular transfer of Rs1.445 billion from the assignment account to commercial bank accounts.
Health Ministry spokesperson Sajid Shah told Dawn that it was routine for a number of objections to be raised during every audit.
“However, the ministry responds to them and most of the paras are settled. The ministry and its ancillary departments will submit replies at appropriate forums,” he said.
