Sindh govt urged to act on Rs40 billion irregularities at National Institute of Cardiovascular Diseases

Transparency International calls for suspension of officials and forensic audit following damning audit report on Sindh’s key cardiac hospital

In a formal letter to Sindh Chief Minister Syed Murad Ali Shah, Transparency International Pakistan (TIP) has called to take immediate action in response to what it has described as “alarming and deep-rooted financial mismanagement” at the National Institute of Cardiovascular Diseases (NICVD). 

According to a report by The News, the appeal follows the release of an audit report by the Director General of Audit Sindh, which uncovered financial irregularities of nearly Rs40 billion during the fiscal year 2023-24.

TIP referenced the Annual Audit and Inspection Report, which identified 42 irregularities at NICVD, a prominent public-sector healthcare institution offering free cardiac treatment across Sindh. 

Among the major issues highlighted were improper recruitment processes, unauthorised salary disbursements, procurement violations, and weak financial controls. 

The report revealed that NICVD appointed several senior officials without adhering to merit-based procedures. These appointments included positions such as Chief Financial Officer (CFO) and Head of Human Resources, with salaries in some cases exceeding Rs8 million annually—far higher than public sector pay scales. These salary irregularities alone amounted to Rs170 million.

The audit also flagged excessive spending on staff mess and hospitality, totaling over Rs10 million, which was reportedly not subject to competitive bidding or proper approval. 

Procurement violations were also noted, with contracts being awarded without following the Public Procurement Regulatory Authority (PPRA) guidelines. Additionally, the report pointed out large cash withdrawals made without proper documentation, suggesting potential misuse of public funds.

The audit found that NICVD lacked adequate internal financial controls, which left the institution vulnerable to corruption, fraud, and inefficiency. It also revealed that the NICVD management failed to provide essential records, including data on surgeries performed, donations received, and funds related to the NICVD Welfare Trust, despite repeated requests from auditors.

However, a spokesman for NICVD said that the audit observations issued by the Auditor General of Pakistan were preliminary remarks and that relevant institutions, including NICVD, were required to submit explanations. He clarified that the audit’s findings do not necessarily imply misconduct or corruption and cautioned against drawing premature conclusions.

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