Sindh CM’s intervention sought over Rs40bn NICVD audit ‘irregularities’

ByImdad Soomro | June 17, 2025

KARACHI: The Transparency International Pakistan (TIP) has urged the Chief Minister Sindh, Syed Murad Ali Shah, to take immediate and decisive action over what it termed “alarming and deep-rooted financial mismanagement” at the National Institute of Cardiovascular Diseases (NICVD).

The appeal comes in light of a damning audit report by the Director General Audit Sindh, which outlines financial and administrative irregularities amounting to nearly Rs40 billion during the fiscal year 2023-24

In its formal letter to the CM, Shah, the TIP cited the Annual Audit and Inspection Report, highlighting 42 major irregularities that allegedly took place at NICVD — a key tertiary healthcare institution in the public sector, known for its free-of-cost cardiac treatment and satellite centers across Sindh. According to the audit report, widespread violations occurred in areas such as recruitment, salary disbursements, procurement, and financial controls. The auditors found that NICVD appointed several senior officials without following merit-based processes or conducting transparent recruitment procedures. These included positions such as Chief Financial Officer (CFO), Head of Human Resource, Head of Security, Manager, and Assistant Manager. The irregular salary payments made to these officials alone amounted to Rs170 million, with some individuals receiving as much as Rs 8.4 million annually, far exceeding public sector pay scales.

The auditors also flagged unauthorised expenditures on staff mess and hospitality, which crossed Rs10 million, allegedly without any competitive bidding, documentation, or approval from competent authorities. The TIP noted that procurement violations were rampant and involved the direct awarding of contracts without following Public Procurement Regulatory Authority (PPRA) rules. Further, large cash withdrawals were made without audit trails or justifications, indicating potential misuse of public funds.

The report concluded that NICVD suffered from weak internal financial controls, unverified transactions, and inadequate oversight mechanisms, making it highly vulnerable to corruption, fraud, and inefficiency. Audit report added that during the audit of the office of Executive Director, National Institute of Cardiovascular Diseases, Karachi, the management did not produce the record of total angioplasties, angiographies, bypass surgeries performed, and the number of deaths that occurred during the last three years. Besides, details of total surgeries pending during the last three years; details of NICVD Welfare Trust Account along with detail of collecting funds in the form of cash & non-cash or any form, details of Cardiovascular Foundation Funds and total fund received on behalf of NICVD during the financial year 2023-24, detail of Donations Endowment and Deposits, detail of Income from Investment and Deposits, and list of bank accounts along with bank statement were not provided to audit teams despite many times requests in written till the finalization of audit report.

NICVD, once regarded as a symbol of progressive public healthcare delivery in Pakistan, has been under scrutiny for several years for alleged financial and administrative lapses. The institute, which receives significant budgetary support from the Sindh government, expanded rapidly across the province with satellite centres offering free cardiac care.

This is not the first time NICVD has faced serious audit observations, in earlier audit reports — including those by the Auditor General of Pakistan (AGP), the Director General Audit, Sindh raised red flags over non-provision of auditable documents, misclassification of funds, over-invoicing, and double payments. In some cases, the institution delayed or refused to share complete financial records with auditors, further exacerbating concerns. Despite its high-profile public image, NICVD’s management has consistently been criticized for operating without a formal board of governors, functioning more as an autonomous body with limited external accountability.

In its recent letter, TIP has recommended that the Chief Minister, to immediately suspend those officials found responsible for mismanagement and financial irregularities; order an independent forensic audit of NICVD’s accounts and HR records; and ensure recovery of misappropriated funds through legal action. However, NICVD spokesman told media that Auditor General of Pakistan has issued observations to all government departments as a standard practice and these are preliminary remarks, and relevant institutions including of NICVD are required to submit explanations and justifications in response. The spokesman concluded that audit observations do not imply misconduct or corruption and drawing premature conclusions from these observations without verification is misleading and unjust.