PESHAWAR: The administration of Mardan Medical Complex (MMC) has found irregularities in award of contract for the hospital’s canteen and held a former acting hospital director responsible for the loss.
The hospital administration conducted an investigation into the alleged scam and submitted its report to the Board of Governors of the institution, The News has obtained the inquiry report.
According to the report, financial losses to the tune of Rs16 million were caused to the institution per year, holding the former acting hospital director responsible for it.
“This discrepancy represents a significant violation of the standard bidding documents and fails to adhere to the principles of financial prudence. The responsibility of this irregularity lies on the shoulders of acting hospital director,” the inquiry committee stated in its report.
It stated that during its Zoom meeting on November 23, 2024, the BoG approved the reconstitution of the inquiry committee to investigate the cafeteria tendering process.
Initially, during the 59th Board of the BoG meeting on November 2, 2024, the committee composed of the Manager Internal Audit and the Procurement Manager.
However, as the procurement manager was involved in the tendering process, therefore the BoG revised the committee’s composition and hospital director was appointed as its chairman and manager internal audit was added as its member.
The committee was tasked with reviewing the tendering process, identifying irregularities, financial losses to the government exchequer or deviations from established protocols, and presenting actionable recommendations to the Board of Governors for further deliberation.
“The inquiry committee convened a meeting on December 2, 2024, following its reconstitution on November 29, 2024, to review the tendering documents and contract related to the Food Corner. During the meeting, the chairman of the inquiry committee directed the manager’s internal audit to develop a questionnaire to be addressed to the former hospital director. The questionnaire, prepared under Letter No. 3954/MTI MMC dated December 12, 2024, was subsequently forwarded to the former Acting Hospital Director for his comments (Annexure 1)
In response, the former hospital director, through Letter No. 906/BKMC dated December 19, 2024, requested access to the complete tendering documents (Annexure 2). Accordingly, the chairman of the inquiry committee provided the requested documents under Letter No. 4209/MTI MMC dated December 20, 2024 (Annexure 3). However, till date, no response has been received from the former acting hospital director regarding his comments,” it was explained in the inquiry committee.
It added that the premises currently occupied by a company, owned by Ms Meena Syed and providing cafeteria services, were previously utilised as a facility for COVID-19 patients.
Afterwards, the report said, the location was renovated to serve as an infectious disease ward, meeting the mandatory requirements set by PM&DC for the recognition of the associated medical college and teaching hospital.
The government invested substantial funds to establish the ward, which included provisions for beds, curtains, washrooms, air-conditioning units, and monitors. Despite this investment, the wand was demolished to accommodate the establishment of the company.
The then acting hospital director (AHD) proceeded with the dismantling of the COVID-19 isolation ward in January 2023. This action was taken without obtaining prior approval from the competent authority, constituting misuse of authority.
The decision adversely impacted public health and patient interests, depriving the community of a critical health care resource.
According to the report, the rental assessment certificate (A mandatory requirement for determining the reserve price or minimum value for the disposal of government assets or property) provided by the Office Of The Sub-Divisional Officer-III CAW building Division Mardan Number As 72/8-A dated 06/02/2023, was valid for a period of only 6 months (Annexure 4), whereas the awarded contract extension for intended for a duration of 3 years, with the possibility of additional five 3 years equal terms (Annexure 5).
“The contractual term has been amended on three occasions, primarily benefiting the company notable discrepancy among others indicating serious irregularities, following table consisting of different terms that have been changed or removed in favour of the food comer. (Annexure 6). The responsibility of these irregularities in contracts falls on the shoulders of Acting Hospital Director who unduly favoured the vendor and harmed the interest of the MTI/MMC. To address potential concerns from the new BoG and government entities such as external audit and anti-corruption, certain terms and conditions have been omitted,” the inquiry report said.
When contacted, Brig (retd) Mussadiq Abbasi, advisor to chief minister Khyber Pakhtunkhwa and head of the Government’s Good Governance Committee, said that they had received the report and will review its findings.
