Audit points out irregularities in expenses, hiring in NICVD

KARACHI: A recent audit of the National Institute of Cardiovascular Diseases (NICVD) has uncovered significant financial irregularities, amounting to millions of rupees during the fiscal years 2021-22 and 2022-23.

The report, compiled by the director general Audit, Sindh, under the Department of Auditor General of Pakistan, highlights issues such as irregular appointments, excessive expenditures on medical supplies, and questionable financial practices.

The report, available with The News, points out many financial irregularities in various purchases, including the purchase of heart patients ‘stents’ of Rs2.046 billion, supplied from the main store to various sub-stores, cath labs, satellite centers, and operation theaters.

However the acknowledgment receipts showing quantity and description of the supplied stents, consumption account of sub-stores, cath labs, and satellite centers, details of a total number of patients catered and operated and stents used for such operations duly supported by documentary evidence were not provided to the audit team. The same matter was pointed out in the month of March 2024 but no reply was given to the audit department.

Besides, the audit report indicated unjustified payments of high salaries worth Rs14.675 billion to employees without any criteria, irregular purchase of medicines worth Rs547.714 million without drug test laboratory report, payment amounting to Rs1.721 billion made on account of various inadmissible allowance to the employees of the NICVD at exorbitant rates and without the approval of the Finance Department in violation of the NICVD Act, 2014, irregular withdrawal of pay and allowance of Rs14.675 billion without maintaining sanctioned and working strength, and non-observance of government rule for the procurement of Rs19.807 billion through Central Procurement Committee.

As per the details, during the audit of the office of the NICVD executive director (ED), it was found that an amount of Rs8.05 million was disbursed on account of ‘health professional allowance’. The audit observed this amount as an excess payment and the management of the NICVD extended undue favor to the few officials.

Besides, another amount of Rs49.353 million was paid to the officials on account of same ‘health professional allowance’ without admissibility as the said allowance was allowed to doctors who were working on administrative posts; Rs5.960 million were incurred for unjustified re-appointment of manager Satellite, Rs.8.343 million incurred for undue favor on appointment of personal Secretary (PS) to Executive Director, Rs.6.130 million paid to manager accounts who was appointed on contract basis, Rs6.720 million paid for irregular promotion of an Assistant Professor, Rs4.096 million were incurred for undue favor given to a ‘dietitian’, Rs14.22 million in irregular and unjustified promotion of ‘head of accounts’ of grade 19, extension and undue favor of Rs17.89 on appointment of ‘head of Internal Audit’ of grade 19, irregular and unjustified payment of Rs11.67 million in re-appointment of head of stores, Rs615.632 million on account of non-practicing allowance, a ‘full-time allowance was given to various doctors of BPS-18 to BPS-20 at exorbitant rates, an amount of Rs50.615 million was paid to the officials on account of dress (uniform) allowance on the administrative post without any justification and notification from the Finance Department as the said allowance is entitled only for the nursing staff only.

In addition, an amount of Rs16.8 million was disbursed in favour of head of security while original minutes of governing body verification of degrees and experience were not provided to audit team. An amount of Rs12.014 million was disbursed in favour of ‘head of pharmacy’ in grade 18 and his services were hired on the said position as Manager Pharmacy on May, 2017, a date of his retirement of his government job, without any justification, though he has less and irrelevant experience for the position of head of pharmacy.

On the other hand, irregular working of the administrative, non-deduction of benevolent funds and group insurance, irregular promotion without maintaining a seniority list, doubtful approval of governing body’s various meetings, loss of Rs15.157 million to the government, undue favor given to the suppliers on the late delivery, irregular expenditure of Rs96.467 million incurred under the head of the account of hospital equipment, unauthorised withdrawal of cash of Rs31.96 million from assignment account, expenditure of Rs19.381 million incurred on account of advertising expenses, non-maintenance of POL log book of Rs102.512 million, irregular expenditure of Rs34.821 on account of linen and uniform, irregular expenditure of Rs22.288 million on stationary and printing, an amount of Rs0.296 million as ad-hoc allowance to different employees, irregular payment of Rs49.353 million as inadmissible allowances to the admin staff, irregular payment of Rs615.632 in the head of the non-practicing allowance at exorbitant rates, Rs9.062 million for irregular working of project manager at NICVD, Karachi, Rs5.96 million for unjustified re-appointment of manager Satellite, and irregular purchase of Rs101.908 million.

This reporter approached the the ED and NICVD Spokesperson Abdul Nasir, called at their official and cell numbers and sent them detailed messages on their WhatsApp numbers, reminded them twice, besides sending the queries through the courier, and waited for their response for one week. They did not respond. Sources in the ED office, however, deny any wrongdoing on part of the ED, and said the NICVD would address the issue accordingly.