Rs 90.74 million journalists insurance contract under scrutiny over alleged PPRA rules violations  

Serious financial and administrative irregularities involving Rs 90.74 million have been pointed out in the Press Information Department

Islamabad:  Serious financial and administrative irregularities involving Rs 90.74 million have been pointed out in the Press Information Department (PID), Islamabad, where an official audit found that a health insurance contract for journalists and media workers was awarded without open competitive bidding, contrary to government procurement rules.

According to the audit report of the Information and Broadcasting Division, the Press Information Department spent Rs 90.740 million on the Insurance Programme for Journalists and Media Workers during the financial year 2023 to 2024.

The contract was awarded to the State Life Insurance Corporation without following the open competitive bidding procedure required under the Public Procurement Regulatory Authority (PPRA) Rules, 2004, the audit report stated.

The auditors termed the award of the contract irregular and recommended an investigation to determine responsibility for the violation of procurement rules.

The audit also identified weaknesses in the verification of people receiving benefits under the insurance programme, raising questions about whether the department had properly checked the eligibility of journalists and media workers before providing insurance coverage.

According to the report, Rule 20 of the Public Procurement Rules, 2004, requires government departments to use open competitive bidding as the main method for purchasing goods, services and carrying out works.

The report also referred to Rule 42(c)(ii), which allows direct contracting under specified conditions where only one manufacturer or supplier exists for the required procurement.

However, the audit found that the Press Information Department had awarded the Rs 90.74 million insurance contract without open competition.

The auditors observed that the procedure adopted by the department did not meet the requirements of the relevant procurement rules.

Another important objection concerned the eligibility of beneficiaries under the insurance programme.

The audit revealed that the department’s records did not contain certificates confirming that the spouses or dependents of beneficiaries were not employees of the federal or provincial governments.

The auditors also found that the department had no proper mechanism to determine whether journalists or media workers receiving insurance benefits were already using health services under the federal or provincial governments’ Sehat Card schemes.

According to the report, the Press Information Department had issued Standard Operating Procedures (SOPs) on August 15, 2023, setting out the eligibility requirements for the programme.

Clause IV of these procedures stated that a person should not already be receiving services under a federal or provincial government Sehat Card scheme.

However, the audit observed that the department had failed to establish a system for checking compliance with this condition. The auditors considered this failure a clear violation of the department’s own procedures, as eligibility could not be properly verified without an effective checking mechanism.

The findings raised concerns about weaknesses in the administrative controls of a programme intended to provide health insurance protection to journalists and media workers.

In response to the audit objections, the Press Information Department management maintained that the insurance services had been obtained under Rule 42(f) of the Public Procurement Rules, 2004.

However, the auditors did not accept the department’s explanation. According to the audit report, the response was rejected because State Life Insurance Corporation had hired services from the private sector in a manner that the auditors considered a violation of the applicable rules.

The disagreement over the procurement procedure left important questions concerning the award of the contract and compliance with government regulations unresolved.

The matter was subsequently taken up by the Departmental Accounts Committee (DAC) during its meeting held on December 30, 2025.

The committee directed the department’s management to obtain clarification from the appropriate forum regarding the procurement issue.

The audit report further recommended that an investigation be conducted to identify the officials responsible for any established violations of the Public Procurement Rules.

It also recommended that the Rs 90.74 million expenditure be regularized through the competent authority in accordance with the applicable rules.

Regularization means obtaining the required approval from the authorized government forum to address the irregular expenditure.

The audit observations relate specifically to the procurement process, the department’s failure to verify certain eligibility conditions and its compliance with the prescribed insurance programme procedures.

Although the report identifies irregular expenditure and recommends an investigation, it does not establish that the entire Rs 90.74 million was stolen or misappropriated, nor does it contain a finding of proven corruption against any named official.