LAHORE: The Punjab Assembly’s Public Accounts Committee-I (PAC-I) has ordered a comprehensive inquiry into alleged irregularities in the award of Rs145.81 million contract for the supply of medicines to a government hospital, citing concerns over the supplier’s eligibility and significant delays in delivery.
The committee directed the Member (Inquiries), Services and General Administration Department (S&GAD), to investigate the procurement process, including the supplier’s prequalification, compliance with prescribed requirements and PPRA rules, and proceedings of the Grievance Redressal Committee (GRC), to determine whether any undue favour or procedural irregularity had occurred and fix responsibility where warranted. The inquiry report is to be submitted to PAC-I within 60 days.
According to the audit report for 2022-23, the contract was irregularly awarded to a local manufacturer allegedly lacking the required production experience. The audit further pointed out that the supply which was required to be completed within 75 days, took approximately 12 months.
The Punjab health department officials informed the committee that the procurement complied with the advertised specifications and prequalification conditions. They also stated that the GRC was competent to decide bidders’ grievances.
Regarding the delay in supply, the department authorities attributed it to shortages of raw materials associated with COVID-19, adding that liquidated damages (LD) had been recovered from the contractor.
However, the committee directed a detailed examination of the procurement process and related proceedings to establish whether the contract had been awarded in accordance with the applicable rules and whether any official or other party had extended undue favour to the supplier. The matter was kept pending for further action following the inquiry.
Copyright Business Recorder, 2026
Comments