After reading the below mentioned case, answer the following two questions?

a.Discuss the statement, The matters would not have reached the gravity that they did, if HFH had a good formal whistle-blowing procedure.

b.Keeping in view the above scenario, discuss the importance of internal controls in an organization?

Dr. Saima Mumtax was finally reinstated on her past position, along with a financial reward and recognition of her positive role by the Chief Minister. She was encouraged and supported a gang of criminals involved in the general public and 'cicerolie unedia, hailed for her bravery in blowing the whistle to embezzlement of huge amounts of zakat money disbursed to Holy Family Hospital (HFH) for treatment of poor patients, leading to the arrest of six persons and recovery of over Rs. 8,316,400. But it had not been easy, particularly for a single woman in a male dominated society. She had to suffer a lot including loss of her job as a part of pressure being brought to bear her to spare the culprits. Meddling into the affairs of this powerful mafia was no mean task but she was determined to make an example of these killers of humanity. But this was not a celebration time for all. Although the culprit were arrested and large sum recovered but parallel criticism was made now a days made on the BAIT-UL-MAAL COUNCIL responsible for the proper handling of funds and delayed detection of fraud due to poor internal control and absence of a whistle blowing pressure. It took five and half months to start investigation since Saima first blew the whistle. There was an increasing pressure from general public and electronic media to dissolve the PBM Council also for poor governance of PB.M. Punjab Bait-ul Maal(PBM) The Government It was created by Pakistan Bait-ul-Maal Act 1991, whose Section 4 provided that: The Government may establish a fund to be known as the Punjab Bait-ul-Maal to which shall be credited. Grants from the Government, the Federal Government, Local Bodies and International Islamic Agencies; and Voluntary donations including Sadqaat, Khairat and Atiat. Objectives and functions of Punjab Bait ul Maal Section 2 of the Act prescribed establishment of a PBM Council to administer PBM and perform the following functions: Relief and rehabilitation of the poor and the needy particularly poor widows and orphans; Educational assistance to the poor and deserving students; Medical assistance to the poor. Charitable purposes. Any other purpose of public utility particularly where the beneficiaries would be the disadvantaged sections of the society; and Any other purpose approved by the Punjab Bait-ul-Maal Council.

Conditions for the Grant for Medical Treatment to Poor Patients Treatment expenses are out of economic reach of the patient. Celling of assistance is fixed at R$. 10,000/- per patient granted by respective District Bait-ul-Mnal Committee. Patients admitted in a Government Hospital or medical institution of a registered NGO are eligible to get one time assistance. Assistance is disbursed to through Patient Welfare Societies functioning in all Tehsil/District HQ Hospitals. Assistance is permitted only for treatment within the country, The Events Sharing details of the 'highly scientific fraud" with the media, Zamurrud Khan Managing Director of Pakistan Bait-ul-Maal, , said "it all started on December 24,2009 when I received an email from Ms Saima Mumtaz furnishing some serious details about the embezzlement of PBM 2009 funds allotted for the needy patients by a particular group of HFH doctor, clerk, account officer and some drug dealers. I started preliminary investigation." The MD of PBM had been tipped about the scam by a former employee of HFH, Ms. Saima Mumtaz. Ms Saima had told him that she had joined the HFH hospital a year ago and had been given the job of assisting the main culprit Dr Syed Abid Hussain Shah. She soon felt that a group of employees of HFH along with some pharmacists was indulging in embezzlement of funds provided by the PBM. Disbursement Procedure As per the prescribed procedure, medical specialist in the OPD or ward signs a case for financial assistance from PBM and submits the case to the MS office for initial verification. This office signs the Performa and sends it to social medical officer (SMO) for recommendation. The SMO sends the case to the relevant section of PBM seeking assistance. This section, after necessary verification, issues the cheque of assistance in the name of MS and SMO who arrange to buy medicines for the said patient from the money granted by the PBM. How the scam worked The scheme of this scientific fraud worked as follows: A clerk would first prepare a fake report of an imaginary Hepatitis patient. It would be approved by Dr Syed Abid Hussain Shah. Farther paper processing work will be done by the accounts clerk, account officer and the dispenser of the same hospital along with a group of pharmacists. The matter will inevitably result in approval for payment of funds which the group will artfully pocket by obtaining fake cash memos for dishonest pharmacies was also involved in the game. This was happening with a fair degree of frequency. When she first suspected that something was wrong and tried to raise the issue with her seniors (namely Dr Abid Shah, she was initially appreciated and later harassed. Ultimately, she had to resign from her job with the HFH. But she decided to take the matter forward. First she wrote a number of detailed letters to the management of HFM. She received no response. Either her letters were not brought to the the relevant officials by their personal assistants, or they chose not to pay any attention to her letters. She then decided to go a notch higher. She approached Mr Zammurd khan, managing director of Punjab Bait ul Maal, and gave him each and every piece of information she had on the matter of this embezzlement. And after carrying out some in-depth investigation, Mr Zamruud Khan discovered that Mohammad Qamar, a dispenser working at HFH, prepared 12 medical cases worth Me 34 million for treatment of hepatitis patients through Bait-ul-Mal funds. Initial investigation these cases, which landed on Zamurrud Khan's table for approval, revealed that all of they were sham. *At this stage, we broadened the scope of our investigation, only to discover that HFH had during 2008-09, obtained approval for another 47 fake cases involving misappropriation of Rs.8,316,400/-*, said Mr Khan. He referred the matter to Federal Investigation Agency (HA)

Investigation Committee On the directives of the provincial government, a high-level inquiry launched a probe into the financial embezzlement at the Holy Family Hospital (HFH) for getting financial assistance from Pakistan Bait-ul-Mal (PBM) in 47 fake cases. Tarn The single-member enquiry committee comprising Member Punjab Board of Revenue Tariq Ayub, a grade-21 officer, initiating the enquiry interviewed medical superintendent and social medical officer of HFH on 21st May, as the most preliminary investigations into the case. The inquiry committee's investigation showed that the accounts clerk at HFH, Shafqat Rafeem, who used to prepare all the fake papers for approval, was the key facilitator in the crime. He was assisted by accounts officer, Ghulam Sayidian Rizvi, who used to get fake cash memos and invoices prepared by the proprietors of a mafia that supplies drug to all the three allied hospitals in Rawalpindi through its four pharmacies and drug stores registered under different names. According to the FIR filed by PBM, the HFH staff, in gross violation of its agreement with PBM, made payments on fake cash memos and invoices to the said medical stores and embezzled theamount. According to the PBM agreement, the hospital can only purchase injections from two pharmaceutical companies namely M/s Schering Plough and M/s Roche as these companies specially manufacture and supply hepatitis injections to PBM at subsidized the rates. It has also transpired that pharmacies involved in the scam never purchased the said injections from the authorized dealers of these two approved companies. Zamurrud Khan said FIRs had been registered against following culprits: a. Dr Syed Abid Hussain Shah, Doctor b. Mohammad Qamar, Dispenser C. Shafqat Raheem, Accounts Clerk d. Ghulam Sayidian Rizvi, Accounts Officer e. Sardar Asif, owner of three pharmacies involved in the seam. f. Afsar Khan, The master-mind and leader of the Network

Assisted by the staff of HFH, Sardar Asif and Afsar Khan had been involved in embezelment of Zakat funds worth millions of rupees that were being disbursed to the government hospitals for treatment ofpoor patients. "All these criminals have been arrested, he informed the public.

The role of the Medical Superintendent of HFH and the Medical Social Officers of PBM and other involved persons will be examined in greater detail out during the course of inestigations,the FIR states. It is the poor to whom this money rightfully belongs. I will recover every single penny from these corrupt elements,' the PBM chief said. He also appealed to the Chief Minister Punjab to pay special attention to exposing the corruption of similar mafias that may be operating in other hospitals of the province, and to order an investigation within the Punjab government's department of Zakat, which also disburses funds running into millions of rupees for the poor. He thanked the DG, FIA, Zafarullah and his team of investigators for working round the clock to unearth the criminals and urged the media to expose such cases. "I also urge the Chief justice of the Supreme Court of Pakistan to take sou moto notice of the case and to bring the culprits to book," Zamurrud stated in conclusion. Responding to a question, Zamurrud Khan said the FIA has been given a free hand to carry out investigations against any employee of the PBM who may be involved in the heinous crime. * If such black sheep are operating within PBM, let me assure you that their faces will be unveiled sooner than later,* he assured. Mr Khan also informed that PBM is conducting similar investigations in all hospitals receiving Bait-ul Mal funds for treatment of the poor. It has constituted its own investigation teams, and is also working in close collaboration with FIA. As a result of findings so far, Ms Mumtaz was re-instated in her job at HFH. She also received a letter of commendation from the chief minister of Punjab. Court Issues Arrest Orders of PBM Fraud Suspects On orders of court the key suspect of fraud in Pakistan Bait-ul-Maal (PBM) Dr Syed Abid Hussain Shah, MS HFH has been arrested and handed over to Federal Investigation Agency (FIA) for further investigation. Court has also cancelled the bail of second major suspect, HeadDispenser Muhammad Qammar and sent him to Adyala jail.