Serious anomalies are present in the KP health project: audit report
According to an audit study, the Human Capital Investment Project (HCIP) of the Khyber Pakhtunkhwa Health Department is in danger of failing because of financial irregularities, needless expenses, hiring ghost workers, and administrative incompetence.
The World Bank-backed project, which was started in March 2021, has failed because of financial violations of Rs16 billion out of a Rs24 billion investment.
The officer who brought attention to the wrongdoing and irregularities had his contract revoked.
Under the banner of “investing in people instead of roads,” the initiative was launched in March 2021 after receiving permission from the World Bank Board.
The initiative’s goal was to improve primary healthcare services in four districts: Peshawar, Nowshera, Swabi, and Haripur.
However, a formal audit of the initiative was prompted by allegations about financial mismanagement, needless spending, ghost appointments, and inadequate control.
The audit and monitoring reports revealed widespread infractions of financial and procurement restrictions.
Two favored businesses were purportedly given contracts for the reconstruction of 158 structures damaged in the 2022 floods, in breach of regulations that forbid giving a single company multiple contracts.
An estimated Rs7.8 billion was lost by the national exchequer as a result of overpricing in construction and repair projects.
Rs1 billion was spent on family planning medications and supplies without competitive bidding, even though this was outside the project’s purview.
An estimated Rs2 billion was lost as a result of hospital furniture, medical equipment, and solar energy systems being purchased from the open market for up to ten times the authorized pricing.
The audit also found that, without any supporting documentation, about 700 ghost workers were hired at wages below government-approved thresholds. Ghost employment was allegedly used to make payments totaling more than Rs510 million.
Another significant irregularity, according to the investigation, was the payment of Rs 200 million to a chosen firm that was hired through a rigged procedure.
Records for OPD receipts totaling Rs7.8 million were not available.
More than Rs570 million worth of medications were bought for hospitals with no official request and no proof of use.
Despite extensive procurement, inadequate storage facilities were set up; it has been stated that medications were kept in parking lots and even in the dorms for girls.
Furthermore, it is reported that over Rs30 million was embezzled under the fuel and miscellaneous expense headings, and some officers were given additional allowances totaling crores of rupees.
Losses from improper hiring practices and non-deduction of sales tax from consulting businesses and individuals were also noted in the report.
Authorities allegedly fired the Monitoring and Evaluation Expert who pointed out the anomalies in a contentious decision rather than following the audit’s recommendations.
Although no action has been taken against the officers found to be in fault in the audit findings, his contract was terminated without warning.
Serious concerns regarding accountability, transparency, and governance in the provincial health system have been brought up by the revelations, especially with regard to donor-funded initiatives intended to enhance public welfare.
Concerns about institutional oversight and misappropriation of public monies are heightened by the fact that officials listed in the audit report have not yet been subject to disciplinary or legal action, despite the seriousness of the findings.