PESHAWAR: The Khyber Pakhtunkhwa health department has detected embezzlement of Rs441 million funds at the Dera Ismail Khan’s District Headquarters Hospital and requested the anti-corruption establishment to recover the amount.

Of those funds, over Rs200 million was siphoned off by a pharmacist and director of the hospital, according to a letter of the department written to the ACE.

It revealed that the DHQ hospital, a medical teaching institution, lost the funds, meant for patient care, to illegal contacts for CT scan and installation of solar system as well as unlawful appointments.

The letter, a copy of which is obtained by Dawn, revealed that the funds included the money generated from X-ray and laboratory tests.

The department recommended the booking of pharmacist and storekeeper Anam Saeed and acting hospital director Dr Mohammad Tahir Khan for aRs200.72 million drug-related fraud and the recovery of that amount.

Requests ACE to recover amount, take action against officials

In the letter, copies of which were sent to the health secretary, director-general (health services) and other senior relevant officials, the health department revealed that its Audit Cell Has found that the pharmacist and acting hospital director were involved in “malpractices and embezzlement of government resources, which caused substantial loss to the exchequer, and in violating the rules and regulations governing financial propriety and administrative conduct.”

While sharing all relevant records with the ACE, it recommended registration of an FIR against both officials under the relevant law to ensure accountability and recovery of the embezzled amount.

The health department’s audit report revealed Rs441 million corruption in the hospital in the form of medicine theft, illegal appointments, and irregularities in medical gas supply and award of CT scan contracts.

It reported Rs130.54 million theft of medicines by the pharmacist and their illegal sale on the market in addition to the unauthorised sale of Rs40.31 million medicines as well as the “stealing” of a contingent of Rs20.50 million medicines received from the Mufti Mahmood Memorial Hospital Dera Ismail Khan.

The report also disclosed that a contract for CT scan service was illegally given away to a private lab in Peshawar for which a Rs80.39 million subsidy was granted.

“Under the law, the government’s share of 40pc in the same contract wasn’t deposited in the hospital’s kitty, causing millions of rupees worth of losses,” it said.

The report also said Dr Farrukh Jamil, the hospital director, unlawfully received Rs30 million in lieu of salaries and allowances.

It said that a contract for supplying medical gases was justifiably awarded, endangering human lives.

According to the report, other irregularities found at the Dera Ismail Khan hospital include misappropriation of Rs10.55 million from the income generated from radiological and pathological services, Rs50 million in the installation of solar systems and Rs6.8 million in the local purchase of medicines.

The auditors expressed concern about the massive embezzlement of funds and recommended strict action against culprits as well as recovery of the amount.

They emphasised that the officials involved in financial malpractices should be subjected to disciplinary action for depriving visitors of free and quality healthcare.

The auditors also called for reforms to make the hospital patient-friendly.

Published in Dawn, June 29th, 2025