Punjab Assembly Orders Inquiry Into Rs. 145 Million Medicine Contract Irregularities

The Punjab Assembly's Public Accounts Committee-I (PAC-I) has launched an investigation into suspected financial irregularities amounting to Rs. 145 million related to a medicine supply contract awarded to a local pharmaceutical firm for a government hospital under the former administration. An audit report indicated that the contract was granted without the necessary experience and the company delayed supplying medicines by a full year despite a contractual deadline of just three months.

The committee found fault with the Health Department's claim that the delay was due to the COVID-19 pandemic. PAC-I instructed the inquiry officer to probe how a company without the required expertise managed to secure the contract and whether they met the necessary eligibility standards. Additionally, the committee is examining allegations of special favors given to the company and is tasked with identifying those responsible for any breach of procurement rules.

The inquiry will scrutinize the entire contract award process, the company's eligibility, the cause of the delayed supply, and the lack of action once the deadline was missed. The committee's conclusions will determine whether procurement rules were breached and who is accountable for any confirmed irregularities. At present, no misconduct has been proven on the part of the company or any individual.