SAHIWAL: Embezzlement of about Rs3 billion during the procurement of equipment for the upgrade of the District Headquarters Hospital (DHQ) to the Sahiwal Teaching Hospital (STH) has been unearthed.

These funds were released under the Annual Development Plan (ADP) schemes from 2016 to 24, Dawn has learnt from reliable sources.

The financial irregularities reportedly pertained to the installation of lifts in the six-storey hospital building, procurement of heavy generators, imported equipment from the UK, Italy and the USA for the pathology lab, mega laundry plant and the Central Sterile Services Department (CSSD) of the Sahiwal Teaching Hospital.

The DHQ Hospital was upgraded to the teaching hospital following the establishment of a Sahiwal Medical College in the city. Under the Punjab government, led by Shehbaz Sharif, substantial development funds were allocated for this transformation.

Alleged corruption occurred during procurement of equipment from 2016 till 2024

The sources revealed that multiple PC-1s were prepared under different ADPs between 2016–17 and 2023–24, increasing the total allocation from Rs3.58bn to Rs9.3bn.

Documents seen by Dawn confirmed that these funds were categorised under the “Missing Facilities” head for the hospital’s upgrade. The hospital was upgraded from 450 beds to around 1,000 beds to cater to the needs of 6.7m population living in Sahiwal division.

A three-member inquiry committee, headed by Additional Secretary (Finance) Ashfaqur Rehman and constituted by the Provincial Secretary of the Specialised Healthcare and Medical Education Department (SHC&ME) last week visited the STH to investigate allegations of financial corruption.

The inquiry focuses on the non-functional laundry plant, which has remained inoperative since its installation nine years ago, and suspected embezzlement in the procurement of equipment.

Speaking to Dawn, Ashfaqur Rehman confirmed that the committee had requested for relevant documents and it was currently reviewing the situation. He added that all former medical superintendents of the STH, principals of Sahiwal Medical College (SMC), and store officials/in-charges linked to hospital departments for purchase and procurement processes would be summoned for statements.

Dr Yaddhullah, the medical superintendent STH, also confirmed that the committee was examining the records under his supervision.

It is learnt that the procurement was done through a procurement cell headed by principals of medical college and all the purchase orders were signed by the principals themselves.

Sources, requesting anonymity, disclosed that high-value equipment worth millions of rupees — including generators, substandard lift installations, and imported machinery for the pathology lab and laundry plant — was missing. The committee has reportedly struggled to locate the equipment and corresponding documentation.

The sources added that following intelligence reports, Chief Minister Maryam Nawaz has formed three separate committees to probe the matter.

A Public Account Committee No 3 is also reviewing the situation on the request of Malik Qasim Nadeem, PML-N MPA from the city.

The CM Monitoring Team is scheduled to visit STH on Aug 13 to gather further documents.

Published in Dawn, August 12th, 2025