Medicines, medical equipment procurement: Mega scam of billions of rupees comes to light in KP

PESHAWAR: A mega scam involving procurement of medicines and medical equipment worth billions of rupees has come to light in Khyber Pakhtunkhwa.

The scope of the investigation has been widened and the role of Khyber Pakhtunkhwa Public Procurement Regulatory Authority (KP-PPRA), which played a central role in the procurement of medicines, is also being examined. Special Assistant to the Chief Minister on Anti-Corruption Brigadier (R) Musaddiq Abbassi has sent a 29-point questionnaire to the Director of Capacity Building KP-PPRA. It was alleged that he had attended the procurement committee meeting. Health officials are also under inquiry and have been sent questionnaires.

Brigadier (R) Musaddiq Abbassi confirmed that mis-procurement has been identified and a high-level committee has been constituted. The committee will investigate the allegations and submit a report. “The committee will investigate how much damage has been done to the national exchequer by fixing high medicine prices, identify those involved in the process and determine who misused the powers,” he said. He added that the inquiry was still in the initial stage, so it would be premature to say anything as it may affect the investigation.

The complaint received by the provincial government alleged that a non-technical team of the government Medicine Coordination Cell (MCL) Procurement Committees (for F 2023-24) selected items at exorbitant prices with mala fide intentions and received heavy kickbacks.

The complaint stated that these items were chosen through a pre-defined master plan by designing and advertising tailored technical evaluation criteria. This led to the selection of poor-quality items and resulted in approved rates that are extremely exorbitant compared to the approved prices of other procurement entities throughout the country, market prices and the last five years of procurement records. The complaint alleged that the total loss to the government exchequer is Rs44.58 billion, besides putting the lives of poor patients in Khyber Pakhtunkhwa at risk.

The anti-corruption letter stated that fact-finding has revealed that Director of Capacity Building KP-PPRA possesses reasonable information to assist the inquiry committee in reaching its logical conclusions. He is directed to send the replies within five days. The questionnaire asks if the official is working solely independently and free to decide or recommend anything, or if the authority has directed its employees to abstain from doing so and to work under the collective wisdom of the authority. It also asks if he sought permission from the head of the authority while attending the meeting held on April 27, 2023 in the health department and to provide the approval note or letter.

The questionnaire stated, “You have played a decisive role in constituting the technical committee, rate contracting committee and other committees without observing the policy notified by the Chief Minister, which includes the composition and role of the committee.”

The letter also noted that on the one side, he was involved in the constitution of different procurement committees while, on the other side, he is hearing appeals as the registrar of appeals. It asks if he received appeals filed by bidders participating in the tender process against the decision of the procurement entity of the health department in the year 2023-24 and requests details of appeals, selection of technical assistants, note sheets, correspondence and its decisions be provided.

The Technical & Evaluation (T&E) Committee of the Directorate General of Health Services KP had shown serious concern over the tendering and bidding process for procuring medicines and medical devices for 2023-24.