HYDERABAD: The management of Liaquat University Hospital (LUH) has cancelled annual tenders 2022-23 worth Rs912.35 million approved for various services in the Hyderabad city and Jamshoro branches of the hospital.

The tenders pertaining to dietary supplements, janitorial works and services rendered etc., were cancelled in view of gross irregularities and over complaints of nepotism.

These were approved by the LUH procurement committee comprising then medical superintendent Dr Mubashir Kolachi (head) and additional MS Dr Shahid Islam Junejo and mukhtiarkar of City (members).

Information gathered by Dawn reveal that lower bids were declined, citing reasons of ‘lesser call deposit’ and ‘unavailable sample’, but the affected contractors dispute LUH’s claim.

In some cases, the reason for rejection was not given in the tender documents updated on the website of the Sindh Public Procurement Regulatory Authority (SPPRA).

Dietary items’ tender alone involves a cost of Rs137.50m; ‘services rendered’ Rs140.06m, consumable items Rs67.17m and instruments involve Rs57.25m etc.

Besides these, Rs1,322.80 m of medicines/surgical items (bulk 85pc) and Rs233.44m were earmarked for local purchase (15pc) of medicines & surgical items.

Huge monetary losses were bound to be borne by the government if tenders were awarded at unusually higher rates and lower rated bids were ignored.

Tender for “security services” was, however, not cancelled for inexplicable reasons despite the fact that these services have been questionable for a long time in the LUH.

Sources said that neither actual number of guards were deputed in the LUH nor approved ‘wages’ reflected in the tender, were paid.

“Suppose, 100 men are to be hired but practically 50 or 60 will be there and even then they don’t get minimum wage of Rs25,000 fixed by the Sindh government,” said an official of the LUH administration.

This year 100 men were to be hired at the rate of Rs28,852 per person (Rs2.88m per month). Last year, the Sindh government gave Rs20.856m – the highest amount for any teaching hospital out of the Rs91.328m – for the services rendered during Covid-19.

The entire tendering process was marred by anomalies/favouritism. For instance, of 25 the ‘services rendered’ contracts, 17 or 68pc went to Junaid Jatoi, younger brother of the LUH’s director administration, accounts and development, Abdul Sattar Jatoi, who being non-cadre officer holds a cadre post. Junaid Jatoi even uses LUH’s premises as his office as the MS turns a blind eye to it.

Contracts were given even to the firms participating without meeting the ‘three years’ condition of experience as per requirement. They include firms of Junaid Jatoi and his friends. Re-tendering was now fixed for Sept 29.

The LUH sources confided that “unless lower scale officials, including a ward servant, Farooq Junejo, and Shoaib Cheepa keep working in the relevant branches, there is a possibility that financial evaluation of bidding will be ‘manoeuvred’ again on Sept 29”.

“Surprisingly, Cheepa is working in the hospital even after retirement in July this year, but the MS remains least concerned about this anomaly,” said a source. “Despite being a BS-5 employee, Jatoi’s brother Abdul Salam works in the general branch where financial evaluation is done,” said one LUH administration source.

Tenders were cancelled after complaints regarding ‘lowest bids’ being ignored and ‘higher bids’ being accepted. “For example wheat flour’s price was approved at an exorbitant rate of Rs179.89 per 1kg for procurement from one M/S Salahuddin while the same flour’s rate of Rs78.9was approved in Sir Cowasjee Institute of Psychiatry in July”. LUH’s last year’s lowest rate was Rs71 per kilo of wheat flour.

The health department has not even sought explanation from procurement committee officers for the anomalies. Rates, say 200pc to 300pc higher, were approved for items like ‘Ensure’ milk and ‘Glucerna’ used for patients in the intensive care unit (ICU). Ensure milk’s rate of Rs2,011 and Glucerna’s Rs2,610 was approved.

“If we buy it from market in bulk, it will not cost more than between Rs1,200 to Rs1,300,” said one official. Last year’s rates for these items were on the higher side. Ensure was procured from the same M/S Salahuddin for Rs1,565 and Glucerna at Rs1,950.

Around 10 family members of Sattar Jatoi were posted in the LUH’s branches dealing with tender or finances of the hospital, said an official.

This reporter sent a message to Jatoi, requesting him to confirm whether his family members were working in the LUH, but he did not reply till filing of this report.

Although Jatoi was not posted in the LUH when the tenders were approved in July, but the contractors insisted it was he who supervised tendering. “Officially or unofficially everything is handled

by Sattar Jatoi in the LUH. He is a planning officer and holding a position in violation of an SC’s order,” said Jalaluddin Lakho, a contractor from Khairpur whose lowest bids for flour of Rs81/1kg and others were rejected.

He told Dawn over phone that his bid of Rs560/1kg for ‘Dalda’ was dropped and that of Rs670 was approved.

“We had decided to approach the high court to question that corruption in tenders, but now tenders are cancelled and we will participate again in the process. But still we fear that transparency will elude the process,” said Lakho.

Lakho’s friend Mohammad Asghar Shaikh and Sikandar Shaikh shared similar details. Bids of Asghar and his colleagues were rejected on the ground that he submitted lesser call deposit. “My call deposit was in fact Rs2,000 up against what was the required amount,” claimed Sikandar Shaikh.

Procurement committee member and additional MS Dr Shahid Junejo also confirmed that “tenders were cancelled over the complaints, but he did reply how the committee of which he was a member approved the bids with exorbitant rates.

“It was typing mistake in atta’s rate of Rs179.89 per kilo,” he said, conceding that “Yes, some firms which didn’t meet three years working experience in tertiary hospitals won the bids “.

MS Dr Hafeez Abro has promised transparency in Sept 29 bidding, saying that previous tenders were cancelled after a hue and cry and reports of nepotism.

“Now a six-member committee, comprising mostly BS-19 officers, will supervise the entire process. I promise things will be different now,” he remarked.

Published in Dawn, September 23rd, 2022