PHC Grants Interim Stay In Ayub Hospital Financial Irregularities Matter

Khudayar Mohla
Peshawar High Court, Abbottabad Bench, Ayub Teaching Hospital, ATH Abbottabad, financial irregularities case, interim relief, stay order, MTI Abbottabad, Efficiency and Discipline Rules 2025, hospital procurement scam, Justice Abdul Fayyaz, Justice Aurangzeb, Mian Muhibullah Kakakhel, Habibullah Turabi, medical teaching institution, BoG Ayub Medical Teaching Institution, Abbottabad news, legal news Pakistan, Khudayar Mohla

ABBOTTABAD: The Peshawar High Court’s Abbottabad Bench on Thursday granted interim relief to multiple petitioners on identical pleas in the Ayub Teaching Hospital financial irregularities case, restraining authorities from taking any action until further orders while directing respondents to submit their comments in the matter.

Justice Abdul Fayyaz and Justice Aurangzeb issued the interim order while hearing four petitions. The court directed the respondents to submit their comments and fixed April 15 for next hearing into the case. Six officials, including a former hospital director, who faced major penalties, had challenged the show cause notices through petitions.  Advocates Mian Muhibullah Kakakhel, Nouman Muhib Kakakhel, Kiran Ayub Tanoli and Syed Amjid Shah appeared on behalf of Habibullah Turabi and other petitioners.  They contended that the very basis of the inquiry was flawed, as it stemmed from a misunderstanding of the election-period procurement ban.

The counsel argued that while general procurement was restricted during the election period, exceptions were explicitly allowed for emergency medical supplies and essential hospital equipment, rendering the inquiry mala fide from its inception. They contended that authorities had unlawfully applied the Efficiency and Discipline Rules, 2025, retrospectively, despite clear directions from the MTI Tribunal to proceed under the 2023 Regulations.

It was also contended that the petitioners were not provided with a proper statement of allegations or any evidence and that were denied the right to cross-examine witnesses, violating established principles of natural justice as well as binding precedents of the superior courts. A fact-finding inquiry established prima facie evidence of wrongdoing, prompting the board of governors of the Ayub Medical Teaching Institution to initiate formal proceedings under the MTI Disciplinary Regulations, 2025.

A formal inquiry committee, headed by senior academic Prof Irum Sarwar (BPS-21) and comprising senior officials from finance, administration and the health department, was constituted to investigate the matter. Official records revealed that the scope of alleged irregularities expanded to Rs1.37 billion and were linked to procurement-related transactions. In its 117th meeting held on March 15, the BoG approved the findings of the inquiry committee and decided to proceed against those found responsible.  On March 17, the board issued show cause notices to 16 officials. Of them, 10 faced possible dismissal and financial recovery, while six others faced minor penalties, depending on the nature and extent of their alleged involvement.

The ones, who were served notices, included former ATH acting director and principal accounting officer. The notice, issued by BoG chairman Dr Abid, cited allegations of inefficiency, misconduct under disciplinary regulations, unauthorised financial benefits and irregular allowances. The accused were given an opportunity to submit written replies and seek personal hearings before any final decision. Following the high court’s interim relief, disciplinary proceedings against the petitioners were suspended.

Managing Partner at Mohla & Mohla - Advocates and Legal Consultants, Islamabad, Founder of The Law Today Pakistan (TLTP) Newswire Service. Former President Press Association of Supreme Court of Pakistan with over two decades of coverage of defining judicial moments - including the dissolution and restoration of Chief Justice Iftikhar Muhammad Chaudhry, Asif Ali Zardari NAB cases, Syed Yousaf Raza Gillani contempt proceedings, Panama Papers case against Mian Nawaz Sharif, matters involving Imran Khan, and the high treason trial of former Army Chief and President Pervez Musharraf. He now practises law and teaches Jurisprudence, International Law, Civil and Criminal Law. Can be reached at: mohla@lawtoday.com.pk
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