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PYPA highlights massive corruption in Federal Health Departments : wants action from PM

Saifur Rehman of Central Drug Testing Laboratories Karachi , Ms Hafsa Karim Elahi of Federal Drug Surveillance Laboratories Islamabad accused of massive corruption

Islamabad : Jan 18 : The Pakistan Young Pharmacists Association (PYPA) has accused two senior officials of huge corruption and demanded of the prime minister to order investigation of the issue. PYPA , secretary general Dr Furqan Ibrahim said Mr Saifur Rehman Khattak, a grade 18 official of Central Drug Testing Laboratories Karachi and Ms Hafsa Karim Elahi a grade 18 officer of Federal Drug Surveillance Laboratories Islamabad are indulged in corruption of millions of rupees. PYPA demanded of the prime minister in its letter , a copy of which is made available to NEWSMAN , to look into this sorry state of affairs of these two key health departments of the federal government.

The following is the copy of PYPA letter
Honourable, Prime Minister
Government of Pakistan
Islamabad

Rs.576.71 million Misappropriation/ Embezzlement by Mr. Saif-ur-Rehman Khatak Director (BS-18) Central Drug Testing Laboratory Karachi; & Mrs. Hafsa Karam Ellahi (BS-18) Embezzled Rs.151.648 million of Federal Drugs Surveillance Laboratory Islamabad

Respected Sir,
Rs.576.71 million was misappropriated/ embezzled by Mr. Saif-ur-Rehman Khatak Director (BS-18) Central Drug Testing Laboratory, Mr. Akhtar Hussain the than CEO DRAP, Mr. Asim Rauf CEO DRAP, Mr. Obaidullah the than Director Admin DRAP, Mr. Sayad Hussain Deputy Director DRAP and others, to purchase equipment, civil work etc; which was revealed in Audit Para No.9, 10, 11, 12, 13, 14, 17, 18 & 27 of audit of Auditor General of Pakistan of Drug Regulatory Authority of Pakistan year 2018-19 & 2019-20.

Dr. Hafsa Karam Ellahi was appointed as In-charge Federal Drugs Surveillance Laboratory Islamabad in 2006 but the entire Laboratory and two vehicles were embezzled by Dr. Hafsa Karam Ellahi. This was highlighted in the Audit Para No.4.1.2 by Auditor General of Pakistan, Government of Pakistan in its Special Audit Report, Drug Regulatory Authority of Pakistan (DRAP), Ministry of National Health Services, Regulation and Coordination, Audit Year 2015-16; and Audit Para No.23 of Audit Report Year 2018-19 & 2019-20.

PC-1 titled “Federal Drug Surveillance Laboratory Islamabad” was approved on 13.05.2006 by CDWP with a cost of Rs.157.82 million for two years. The project objectives are as under.
To ensure availability safer, efficacious, and quality drugs to the general public by establishing a laboratory other CDL with credible testing system which in due course of time may obtain ISO/International Certifications and accreditation by WHO.
To establish a reference laboratory for testing and certifying commodities for exports purpose in post WTO scenario.
To provide centre for research and development in the field of medicines.
To establish an Institute for standardization and distribution of secondary/working reference standards of Active Pharmaceutical Ingredients (APIs) from primary/pharmacopial reference standards for manufacturers to bring harmonization of standards in the pharma industry.
Post marketing surveillance.
All equipment purchased by Dr. Hafsa Karam Ellahi was defective and of no use. That’s why she approached Federal Medical College to get possession of the building of Federal Drugs Surveillance Laboratory. Not only this, she continued to purchase defective equipment, even after shifting from the original building to NCL building. During this period, Dr. Hafsa Karam Ellah purchased properties on her husband’s name and also shifted money (by money laundering) to USA. Then Dr. Hafsa Karam Ellah got her services transferred from Federal Drugs Surveillance Laboratory to Drug Regulatory Authority of Pakistan illegally as Deputy Director, wherein she was appointed only for Federal Drugs Surveillance Laboratory. Audit is of the view that non-functioning of laboratory has resulted in wastage of public funds invested as well as non-achievement of objectives despite the fact that general public remained deprived of the benefits of the Laboratory.

Audit is also of the view that general public and public exchequer has to sustain loss while the management neglected the non-functioning of the Laboratory.

Mr. Saif-ur-Rehman Khatak was illegally appointed in CDL Karachi DRAP in 2016; whereby Federal Government is the appointing authority of Government Analyst under section 16 of Drugs Act 1976. Central Drug Testing Laboratory is not capable of doing even very simple tests of quality of Drugs, it is revealed in Para No.11 of the audit of Auditor General of Pakistan that Three members committee was constituted on 21.05.2019, with ToRs having benchmarks/points in three major areas (i) Installation Qualification (9 benchmarks/points) (ii) Operational Qualification (9 benchmarks/points) and (iii) Performance Qualification (4 benchmarks/points). The Committee only did inspection of Installation Qualification left other two, whereas a Committee member (Quality Manager PDTRC Lahore) through separate note raised observations on all nine (9) benchmarks/points and offered recommendations.

Inspection regarding other two areas, Operational and Performance Qualifications had not been conducted, which had been recommended by the member from PDTRC.

The period of warranty had not been forthcoming from deliveries challans and any other record.

There had been trainings on use of equipment but no list of persons trained by vendors had been forthcoming from the record.

The GST Rs. 12.69 million and income tax Rs.3.92 million (totaling Rs. 16.62 million) exemption had been claimed by 2 firms, through 4 invoices (M/s Technology Links Karachi and M/s Kamstec International Karachi), based on imported of items, the bills of landing had not been provided by the firm to verify the payment of GST and income tax at the time of clearance.
Audit is of the view that in the absence of Operational and Performance Qualification’s inspections, Audit is unable to verify functioning of the equipment.

It is pertinent to mention here that Mr. Saif-ur-Rehman Khatak Director CDL Karachi DRAP and Mr. Ajmal Sohail Officer In-charge Lahore Office DRAP used to transfer the public money (in connivance with Mr. Muhammad Aslam Afghani the than CEO DRAP, Mr. Akhtar Hussain the than CEO DRAP, Mr. Asim Rauf CEO DRAP, Mr. Obaidullah Director Admin DRAP and others) from the account of Drug Regulatory Authority of Pakistan into their own accounts or any private person’s accounts or joint private accounts and payments were done from those accounts, which is a grave financial embezzlement and cognizable offence. This is the main reason that huge financial embezzlement took place in Central Drug Testing Laboratory of DRAP.

It is most respectfully prayed that start criminal proceeding against all above accused, and recover entire looted money.

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