ISLAMABAD: The recently released Auditor-General of Pakistan’s Audit Report has identified irregularities of Rs3.41 billion in various ancillary departments of the Ministry of National Health Services (NHS).

The report, available with Dawn, found fraud, embezzlement and misappropriation amounting to Rs28.41 million, procurement-related irregularities of Rs1,779.26 million and irregularities related to the management of accounts with commercial banks worth Rs1,483.73 million. However, an amount of Rs127.27 million was recovered following the intervention of the audit department.

Pakistan Nursing Council

According to the report, the Pakistan Nursing and Midwifery Council (PNMC) refused to have its accounts audited in violation of a Supreme Court judgment dated July 8, 2013.

“In response to the audit intimations, PNMC, through letters dated 31.03.2023, 15.05.2024 and 21.05.2025, stated that the council is an autonomous body generating its own revenues through various activities and services and does not receive financial grants from the Government of Pakistan,” it stated.

Procurement violations, unaudited accounts and fund management issues identified in NHS-linked institutions

The matter was reported to the Secretary, Ministry of NHS, and the ministry directed the PNMC to provide all auditable records, but the management did not comply, the report revealed.

“Audit is of the view that the stance taken by the management is in violation of the orders of the Supreme Court of Pakistan and attracts Section 14(3) of the AGP’s Ordinance, 2001. Audit is also of the view that, as the PNMC is established and controlled by the Federal Government, it falls under the audit jurisdiction of the Auditor General of Pakistan,” it stated.

The audit recommended disciplinary action against officers involved in hindering the functions of the Auditor General of Pakistan and defying the Supreme Court’s order, besides directing the provision of auditable records.

Federal Directorate of Immunisation

The audit also identified procurement of vaccines at higher rates due to non-compliance with a federal cabinet decision, resulting in an impact of Rs1,109.441 million.

“The Public Procurement Regulatory Authority notified exemption for procurement of EPI vaccines from the applicability of the Public Procurement Rules, 2004, under Section 21 of the PPRA Ordinance, 2002, in compliance with the decision of the Federal Cabinet dated 23.11.2016. Rule 38 B(2) of the Public Procurement Rules, 2004, states that the procuring agency shall make a decision with due diligence and in compliance with general principles of procurement such as economy, efficiency and value for money,” it stated.

The management of the Federal Directorate of Immunisation (FDI), Islamabad, purchased Pentavalent and Tetanus Diphtheria (TD) vaccines through open competition and incurred expenditure of Rs3,233.084 million during the financial years 2022-23 and 2023-24, it further noted.

Human Organ Transplant Authority

During the audit, it was revealed that the Human Organ Transplant Authority (HOTA), Islamabad, retained public funds amounting to Rs38.782 million in a current bank account after the close of the financial year.

The audit observed that HOTA retained funds in current account No. 4018034732, operated at the NBP G-9/4 Branch, Islamabad, as of June 30, 2024. The account had neither been reviewed nor closed in accordance with Clause 4(3) of the Cash Management and TSA Rules, 2024, nor had the balance been transferred to the Federal Consolidated Fund.

However, the report said HOTA replied that the account had been maintained with the approval of the Finance Division since 2013.

The audit recommended that HOTA immediately initiate a joint review of the account with the Finance Division in line with the TSA Rules and take prompt action to transfer the retained balance to the Federal Consolidated Fund or Public Account in accordance with the Public Financial Management Act, 2019.

Polyclinic Hospital

The audit also found irregularities in the procurement of drugs and medicines worth Rs508.400 million at Polyclinic Hospital.

The management of Polyclinic Hospital incurred expenditure on the procurement of drugs, medicines, including tablets, syrups, injections and surgical consumables, on a local purchase basis from M/s Jahangir Pharmacy, Civic Centre, Islamabad, during the financial year 2024-25.

The audit observed that there was no government-approved policy for procuring drugs, medicines and surgical items on a local purchase basis.

Other irregularities

The report also identified irregularities of Rs15.174 million and unauthorised procurement of MRI software worth $0.350 million at the National Institute of Rehabilitation Medicine.

At Sheikh Zayed Medical Complex, Lahore, it identified “fraudulent” payment of consultants’ share amounting to Rs28.41 million and the irregular transfer of Rs1,444.950 million from an assignment account to commercial bank accounts.

It is worth mentioning that large amounts of irregularities are identified in almost every audit report, but many of them are later settled by the Public Accounts Committee (PAC).

Health Ministry Spokesperson Sajid Shah, while talking to Dawn, said that it was a routine that during every audit a number or objections were raised.

“However ministry responds to them and most of the paras are settled. The ministry and its ancillary departments will submit the replies at appropriate forums,” he said.

Published in Dawn, June 26th, 2026