KP Health Department Directs Medical Institutions to Address External Audit Findings

PESHAWAR: The Khyber Pakhtunkhwa health department has directed chairpersons of medical teaching institutions’ boards of governors, along with hospital and financial directors, to respond to observations from an external financial audit during a meeting scheduled for July 17 at the health secretariat.

A letter issued by the department mandates full preparation for the meeting, including submission of audit reports, financial records, compliance documentation, and proposed corrective action plans to ensure a thorough discussion of the audit’s findings.

Senior officials revealed that the audit was carried out by a private accounting firm, Rafaqat Babar and Co, under the facilitation of the Khyber Pakhtunkhwa Health Care Commission (HCC), which lacks the technical capacity to conduct such audits independently. The HCC, established under the 2015 Health Care Commission Act, oversees healthcare regulation and quality standards but does not handle financial auditing.

Minister to examine audit report in meeting today

Health Minister Khaliqur Rehman will chair the meeting to review the audit outcomes, amid concerns over governance and financial transparency at the institutions. Sources indicate that stakeholders and lawmakers had previously advocated for an audit by the Auditor General of Pakistan, aligning with practices in other departments.

The provincial government implemented the Medical Teaching Institutions Reforms Act, 2015, which applies to 11 hospitals and affiliated colleges. These institutions operate autonomously via their boards of governors, despite receiving government funding, including a budget increase from Rs65 billion in 2025 to Rs80 billion this year. They manage appointments, procurement, and one-line budgets independently, raising questions about adherence to merit and financial accountability.

Allegations of irregularities in senior appointments and fund utilization—through sources like Sehat Card Plus and user fees—have prompted scrutiny. Previous attempts by the health department to audit MTIs reportedly failed due to resistance from the MTI-Policy Board, which insisted on external oversight. In January, Rs10.5 million was allocated for an audit of all 10 provincial MTIs, but the process was not completed as planned.

Officials criticized the recent private audit as ineffective, emphasizing that public fund oversight should mirror procedures in other sectors. Additionally, the chief minister recently directed regular inspections of MTIs amid concerns about declining patient care quality. The MTI-Policy Board chairman did not respond to requests for comment.

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