PESHAWAR: An audit report has revealed financial irregularities at the Khyber Pakhtunkhwa directorate-general (health services) during the period of the caretaker government in 2023-24 and recommended recovery of the money from the responsible people as well as action against them.

It also disclosed that unauthorised expenses of Rs200.8 million were made from the specific account of the directorate for Covid-19 and implementation of the Dengue Action Plan 2023-24 but the amount wasn’t used for the same purpose and spent on other activities.

The report said the health services directorate hadn’t deposited Rs7.89 million profits earned from its bank account in the government treasury in addition to unauthorised expenditure from the time of the caretaker government in violation of the relevant financial laws.

It said that it was mandatory to put earnings from that account in the government treasury within one week of arrival.

Audit report recommends recovery of money, action against responsible people

The 16-page report revealed that in a few cases, payments for the purchase of papers and repair of vehicles were made without any proper documents, raising doubts about misuse of funds.

It also said yhe directorate failed to deduct taxes at source in taxable affairs, including stamp duty, income tax and sales tax, causing losses to the tune of Rs3.3 million to the government, while an amount of Rs20.75m was made to repair vehicles that didn’t appear in records.

According to the report, the money incurred on repair of vehicles were neither recorded nor verified by any responsible officer, showing misuse of funds.

Also, officials during the caretaker government paid Rs79. 99 million to procure papers but it emerged during the audit that there were no proper documents in this regard.

Enlisting further irregularities, the report said that payments were made without the approval of the committee formed for the purchase, which raises suspicion of misuse of funds.

“The directorate committed irregularities in the tendering process as well as it ignored the pre-approved contractors, and awarded contracts to those who hadn’t qualified the bidding process. The directorate which was supposed to return the funds to the government but it retained an amount of Rs306.89m, which had been collected from grants and donations. These unspent funds were kept illegally,” said the report.

The audit team recommended action against those involved in unlawful matters and said instructions should be issued to the people who were at the helm of affairs during that period to return profits on bank account, taxes and unused funds to the government treasury.

It also suggested action against those responsible for abetting major lapses in the financial management of the directorate.

“Shortcomings have been found due to which the government has suffered a large-scale financial loss. There is a need for an immediate investigation into this matter and action against those responsible so that such incidents can be prevented in the future,” said the report.

Meanwhile, the health department has constituted an inquiry committee to further investigate the matter and pave the way for action in light of its recommendations, officials told Dawn.

They said that many inquiries were under way to bring to justice the people who committed financial and administrative irregularities during the caretaker government in the province.

Published in Dawn, February 25th, 2025