LAHORE: The Auditor General of Pakistan (AGP) has pointed out financial irregularities, including embezzlement and misappropriation of over Rs1,048 million, in the accounts of the district health authority Lahore during the financial years of 2022-24.

It is stated to be one of the mega irregularities reported so far in the accounts of the health authority, raising questions about the transparency in the public exchequer.

According to the audit report (a copy isalso available with Dawn), there were 32 formations in the authority and the audit was conducted of only 12 formations.

Total expenditure and revenue of the health authority was Rs5,070m and Rs5.8m, respectively, out of which 61p expenditure and 65pc receipt were audited.

During an audit of the chief executive officer (CEO) of the authority for the financial year 2023-24, it was observed that it had purchased bulk medicines for Rs138.2m. The probe revealed that minimum three prequalified bidders did not participate in the bidding process and accordingly purchase order was issued in violation of clarification by the Public Procurement Regulatory Authority (PPRA) and instructions issued by the Directorate General of Health Services Punjab. This resulted in irregular purchase of medicines worth Rs138.2m and irregular purchase occurred due to weak financial controls, the report says.

In the audit of the financial years 2022-24, it was observed that the man-agement had hired different batches of contingent paid staff for polio and dengue activities and paid Rs10.742m.

Scrutiny revealed that the management entered twice the same candidates with same names and CNICs in the same appointment orders/acquaintance rolls to draw double or triple salaries and embezzled the amount mentioned above.

The matter was reported to the Principal Accounting Officer (PAO) in Sep 2024, reads the report.

The management claimed salary discrepancies were due to typographical errors but failed to provide supporting records, making the reply unsatisfactory.

The Special Departmental Accounts Committee (SDAC), in its meeting on Nov 19, 2024 directed an administrative level inquiry along with recovery of overpayment.

`No compliance was shown to the audit till finalization of the report in 2025 and the audit recommends recovery besides fixing responsibility against the person(s)at fault,` reads the audit report.

During an audit of 2022-24, it was observed that the amount of Rs192.7m was drawn from the treasury on account of the salary of contingent-paid staff.

Scrutiny revealed that Rs153.5m was paid and the remaining amount of Rs39.2m was misappropriated. Audit recommends recovery and fixing of responsibility. Under the same head, The audit found that the management had withdrawn Rs451.4m on account of the salary of 6,552 contingent-paid staff hired for 152 days. However, as per attendance register out of 6,552 employees, 3,492 employees remained absent for 16,676 days but payment of Rs15.6m was paid for the absence period. The management misappropriated the overdrawn amount.

The audit found misappropriation of Rs58.5m due to the double hiring of contingent paid staff for the same period in different towns. The matter was reported to the PAO concerned in November 2024. The management replied that the deputy district officers health were concerned only with the staff hired and paid for their towns only.

The reply was not tenable. The Special Departmental Accounts Committee, in its meeting on Nov 19, 2024, directed an inquiry to fix the responsibility. No compliance wasshowntoaudit.

During the audit of deputy district officer health Wahga Town for2022-24, it was observed that Dr Hafiz Naveed, after transfer on Sept 26, 2022 and charge relinquishment on Sept 27, 2022, irregularly sanctioned Rs42.5m on Sept 28, 2022.

The audit says he opened an unauthorised bank account with the Bilal Ganj branch of a private bank without finance department`s approval, while maintaining the existing Baghbanpura account with a public bank. A treasury cheque for Rs42.5m was deposited with the new account and withdrawn through two cheques of Rs20m and Rs 22.5m.

Moreover, the then DDO presented the bogus hiring orders asthe details of CPS hired at Wagah Town and those entered in the bill submitted to the AG Office did not match. This resulted in fraudulent cash withdrawal of staff funds on fake orders of Rs42.5m.

Similarly, the audit report also pointed out irregularities, misappropriation and embezzlement of other funds in the account of the health authority. Some of them included, Rs47.6m against unauthorised engagement of additional staff, Rs487m against non-transparent hiring of the employees, Rs45.8m against overpayment of pay and allowances, etc.