Corona Relief Funds: Auditors find fictitious purchases of items worth Rs881 million by KP govt

Investigative reporter Zahid Gishkori has revealed that the country’s top auditors have pointed out fictitious purchases, huge irregularities, wasteful expenditures, and losses to public funds of more than Rs3 billion by the health department of the Government of Khyber Pakhtunkhwa (KP). According to a report published in The News, a special audit team of the Auditor General of Pakistan (AGP) found “fictitious purchases of items worth Rs881 million by the KP government”.

“The auditors scrutinised the allocation of Rs8.8 billion made for the fiscal year 2019-20, including Rs7.8 billion released by the finance department KP government. Furthermore, auditors also audited an amount of Rs1.7 billion allocated by the finance department to the health department, home & TA department, and the Pandemic Response Effectiveness in Pakistan (PREP), KP, for fighting the Covid-19 pandemic,” read the report.

“The auditors pointed to doubtful purchases of equipment worth Rs14.358 million, which included stockpiling and logistics, noticing irregularities in an amount of Rs1 billion, which was allocated for provision of death compensation under the relief package for frontline workers dealing with Covid-19.”

The report also features irregularities in funds of Rs140 million, which were released to the Home and Tribal Affairs Department for screening of prisoners.

“The audit team also pointed out that the management of PDMA incurred an expenditure of Rs62 million on the purchase of PPEs without any market survey. The audit team pointed to losses of Rs117 million public funds in the purchase of some specification cardiac monitors recommending a high-level inquiry for fixing responsibility and making good the loss sustained by the government,” stated the report.

“The AGP also questioned non-supply of ICU ventilators despite payment of Rs43.425 million and non-supply of medical equipment worth Rs150 million. Auditors also recommended a doubtful award of contract and payment of Rs11 million to M/s Dawazai & Company, pointing out a supply of 400,000 substandard masks by M/s Protech Solutions to the PDMA accordingly.”

Meanwhile, Finance & Health Minister of Khyber Pakhtunkhwa, Taimur Khan Jhagra tweeted, “[The report is] confusing, misleading & irresponsible; this article is based on an on-going audit process in the province.”

However, as per The News, the complete audit report has been sent to President Arif Alvi.