NAB starts probe into Rs2.9bn alleged embezzlement in KP Covid fund

The National Accountability Bureau (NAB) Khyber Pakhtunkhwa launched probe into  alleged corruption and irregularities of Rs2.9 billion in the KP Coronavirus Fund.
The NAB has already seized details and records of funds from the Health Department. According to sources, it has been decided to summon members of National Assembly on the allegations of million of rupees benefits to their companies during the pandemic. Statements of some members of Khyber Pakhtunkhwa Assembly, government officials and health department officials will also be recorded. The NAB investigation team has also visited Peshawar, Mardan, Charsadda, Nowshera, Dera Ismail Khan, Swat, Abbottabad and other districts to collect details of funds spent by the administration on quarantine facilities.
Earlier, the Auditor General of Pakistan special audit report had identified  financial irregularities of over Rs 2.9 billion in the Khyber Pakhtunkhwa Coronavirus Fund. The report said that by misusing administrative powers, billions of rupees have been contracted out to favored individuals and a loss of billions of rupees have been incurred to the exchequer.
Despite the first position of world class Shaukat Khanum Memorial Hospital and Research Center, a local laboratory, Islamabad Diagnostic Center (IDC) was awarded contract of PCR tess for Rs449 million. According to the audit report, there were irregularities of more than Rs373 million in the rapid antigen test while Rs368 million was illegally paid to the rapid response team. The Auditor General identified irregularities of more than Rs2.9 billion in Coronavirus Fund.
According to the audit the report,  purchase of oxygen cylinders at a higher price caused a loss of Rs 44 million to the exchequer. The special audit report also revealed a suspicious purchase of a cardiac monitor worth Rs45 million.
During the technical review, the management preferred a local laboratory MS Islamabad Diagnostic Center and downgraded the world class Shaukat Khan Memorial Hospital and Research Center which had offered to give 4,000 test results daily while MS Islamabad Dynastic center does not even have the capacity to even conduct 200 tests daily.
According to the audit report, there have been irregularities of more than Rs373 million in the rapid antigen test. The Director General of Health Services had sought quotation for rapid antigen test on 26 April 2021 and MS Ijaz Enterprises was selected on the basis of fair bid.
The report said that Rs368 million was paid to Rapid Response Team One and Rapid Response Team Two as per the records of the Director General of Health Services. The team member was paid Rs3,500 and Rs4,500 per day respectively but the payments were not approved by any forum. People who have been paid on a daily basis are already receiving monthly salaries from the state exchequer. Moreover, the list of members of Rapid Response Team was provided by the District Health Officer without mentioning their positions. According to the audit, all the expenditure incurred in this regard has been incurred in a dubious manner.
The Additional Deputy Commissioner in each district was asked to provide a list of taxi drivers who facilitated the Rapid Response Teams. Each taxi driver was paid Rs3,000 for daily but only the record of January 2021 was available.
The report said that an unauthorized payment of Rs127 million has been made to the contractor for disposal of Coronavirus waste. The Directorate General of Health Services had informed all District Health Officers through a letter on July 3, 2020 that each hospital administration should appoint a focal person so that they remain in contact with the officials of Arar Services for disposal of contagious waste from the hospital used in Coronavirus. But, despite the directives, the amount was paid without the signature of the focal person, which show that suspicious payment has been made to the concerned contractor.
According to the documents submitted to the NCOC by the health department, the price of a small oxygen cylinder was stated to be Rs18,000 to 20,000 while the price of a large cylinder as Rs23,000 to 25,000. The repot said that during 2020-21, a total of Rs149 million was paid to various contractors for the supply of oxygen cylinders and instead of the given price, Rs28,000 to Rs119,000 was paid for a single cylinder which incurred Rs44 million loss to the exchequer.
Aziz Buneri
Aziz Buneri
Aziz Buneri covers financial, social, political and regional issues for Pakistan Today and Profit. He can be reached at [email protected]

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