The first case of misappropriation of medicines worth Rs 20.56 million was noticed during the financial year 2010-11 in the office of Medical Superintendent (MS) DHQ Hospital D I Khan wherein the medicines were purchased by the local office, but were either or not taken on stock register or were factiously issued. In some cases stock was not physically available as such medicines were misappropriated by the dealing hands.
The misappropriation of medicines was in violation of paras 148, 149, 151 and 155 of General Finance Rules (GFR) Vol-I, which says that all materials received should be examined, counted, measured, weighed at the time when delivery is taken, and entered in stock by a responsible officer. When materials are issued for departmental use, manufacture, and sale; the store officer in charge should see that an indent in prescribed form has been made by a properly authorized person. According to the details of the case, medicines, cotton roll and disposable syringes valuing Rs 4.02 million were purchased but were neither taken on the relevant stock register/ not available in balance nor were handed over to the new store keeper.
Medicines worth of Rs 9.65 million were provided by Director General (DG) Health/NGO during flood season but documentary evidence was not available. The DMS store physically verified the same on 23.07.2011 and found storage of medicines.
Medicines valuing Rs 5.08 million were issued to units but the expense was either in excess of actual issue or fake issue was shown. The return from sub unit was also not taken on stock. DMS 'Zanana' Hospital stated that no indent to store issued by her or even by the Gynaecologist. Medicines valuing Rs 1.29 million were taken on emergency stock register but neither issued to the sub store nor was physically available.
Gynae medicines valuing Rs 0.50 million were shown issued from store but were neither acknowledged by the unit nor were actually issued. Audit told that medicines were required to have been properly accounted for and issued according to actual demand and consumption of the units. Similarly, the balance was required to have been handed over to the newly posted store keeper which was not done, which resulted into misappropriation of medicines worth Rs 20.557 million.
The misappropriation occurred due to non-adherence to the rules and procedures and financial mismanagement. The matter was pointed out in October 2011 and the management admitted the misappropriation and stated that recovery will be made. But, despite the repeated requests of audit for holding Departmental Accounts Committee (DAC) meeting. However, DAC meeting was not convened till finalization of the report.
Audit has recommended investigation into the matter, fixing of responsibility and recover the misappropriation amount from the responsible persons. The second suspected misappropriation to the tone of Rs 3.27 million was noticed on account of local purchase of medicines.
During the financial year 2013-14, the accounts record of Medical Superintendent Sarhad Hospital for Psychiatric Diseases Peshawar revealed that rates for local purchase of medicines were approved in respect of M/s Nimra Medicos but on further scrutiny of record it was observed that during this period, an amount of Rs 3.27 million was paid to M/s Continental Enterprises on account of local purchase of medicines. The claim pertains for the financial year 2013-14. A huge expenditure on this account was incurred up to 30.06.2013, but due to unknown reasons liability of Rs 3.27 million was shown cleared during 2013-14. It is apprehended that due to lack of internal check/control such irregularities/negligence were made.
The audit has recommended detailed inquiry against the persons responsible for excess expenditure and clearance from the budget allocation for 2013-14. When pointed out in September 2014, the management furnished no reply. DAC also discussed the matter in December 2015 and directed that fact finding inquiry be conducted within one month. No further progress was intimated till finalization of the audit report. So, the audit recommended inquiry and taking action against the persons responsible. The third misappropriation was noticed in medicines worth Rs 2 million received from World Health Organization (WHO) during financial year 2010-11.
The Medical Superintendent, District Headquarters Hospital D I Khan received huge quantity of medicines and cotton rolls amounting to Rs 2 million from WHO. In the stock register the quantity was entered, but was not shown issued to wards nor handed over to newly posted storekeeper. In case of cotton rolls, 5 to 10 rolls were shown issued to the patients directly and stock register page was not signed due to which it is not clear that by whom issued. Non-issuance and non-handing over to new storekeeper shows that the medicines of Rs 2.00 million misappropriated.
The misappropriation was pointed out in October 2011 and the management agreed with audit and replied to recover the same but no recovery reported till finalization of the annual audit report.
The audit has recommended conducting inquiry, fixing responsibility and recovery of the misappropriated medicines. Similar, misappropriation of Rs 1.60 million has also been detected in purchase of equipment and the audit has recommended conducting inquiry, fixing responsibility and recovery of the misappropriated amount from the responsible persons. The fourth misappropriation of Rs 1.38 million was occurred in the Out-Door Patients (OPD) Department and the audit has recommended inquiry, fixing responsibility and recovery of the amount.