PESHAWAR: National Accountability Bureau (NAB) arrested former director general health services, Khyber Pakhtunkhwa, Dr Shaukat Ali, after his pre-arrest bail was rejected by an accountability court on Wednesday in a high-profile multi-billion rupees medicines and surgical equipment procurement scam.
Judge Zafar Khan pronounced recalling the interim bail earlier granted to the accused after completion of arguments by both the parties. The court will release detailed order later.
Soon after the court pronounced its order, the accused was taken into custody by officials of NAB, Khyber Pakhtunkhwa. He is likely to be produced before the accountability court today (Thursday) by NAB for getting his physical remand.
NAB has few months ago started an inquiry into the much publicised scam wherein Dr Shaukat and several other officials of health department have been accused of gross violation of procurement processes in purchase of medicines during the last caretaker government in the province.
Dr Shaukat likely to be produced before court today for physical remand
The initial probe by NAB and an earlier inquiry conducted by the provincial government claimed that embezzlement/loss of government exchequer had been established against the purchase of medicines, surgical equipment and other items to the tune of Rs4.4 billion. The present petitioner is suspected to be the central figure in the scam.
Lawyers representing the petitioner contended that their client was wrongly accused of being the central figure in the procurement irregularities. They said that the allegations lacked factual basis and were based on hearsay.
They referred to earlier inquiries conducted by the KP government arguing that those committees had not found any evidence of embezzlement or corruption in the procurement process.
They argued that the petitioner had remained fully cooperative with the investigation and under National Accountability Ordinance he could only be arrested if he had been affecting the investigation process or there were apprehensions about his becoming an absconder.
NAB deputy prosecutor general Mohammad Ali argued that there was incontrovertible evidence against the accused of connecting him with the commission of the offence.
He contended that the petitioner had allegedly embezzled funds during his tenure as director general health services while procuring medicines and surgical items for multiple hospitals and health facilities. He said while billions of rupees were withdrawn under the guise of procurement, the supplies were non-existent on the ground.
Mr Ali alleged that the petitioner was involved as chairman of selection and rate committee and head of procurement process from initiation till completion.
He claimed that payment of Rs3.17 billion were made without physical inspection of procured stocks/goods. He added that majority of the payment was made without obtaining standard test report from Drug Testing Laboratory, which was an essential prerequisite before initiating processing of bills.
It is pertinent to mention that pre-arrest bail petition of another accused in the case, Dr Irshad Ali, a former district health officer, Dir Lower, who was assigned additional charge of director public health, is also pending before the court and is expected to be decided in next few days.
Prior to taking cognisance of the matter by NAB, in 2024, the provincial government had notified a committee consisting of adviser to the then chief minister on anti-corruption retired Brigadier Musaddiq Abbasi, as its convener, additional chief secretary, establishment and finance secretaries, to probe the allegations of misappropriation of funds in procurement of medicines during the last caretaker government in the province.
After completion of probe by the said committee, its report was sent to the then chief minister Ali Amin Khan Gandapur, recommending disciplinary action against Dr Shaukat Ali and several other officials of health department.
The inquiry report had revealed that Dr Shaukat had placed orders with different firms for supply of Rs4.44 billion medicines without seeking demands from hospitals, so medicines were unnecessarily procured. It noted that commonly, procurements took place only after all hospitals furnished demanded lists.
It said that records showed that the drugs kept in the main store valued around Rs800 million but suppliers were paid Rs3.17 billion.
Published in Dawn, April 9th, 2026