Vigilance probe into KMSCL medicine purchases; Kerala Kaumudi report prompts action

THIRUVANANTHAPURAM: Vigilance will investigate alleged irregularities in medicine procurement by the Kerala Medical Services Corporation Limited (KMSCL), following reports of medicines being purchased at high prices and concerns about the quality of medicines the corporation procured.

Health Minister K. Muraleedharan ordered the Vigilance investigation after considering a Health Department report that KMSCL had purchased poor-quality medicines at high prices and a Kerala Kaumudi report that the corporation had spent Rs 962 crore on medicines last year, though it could have procured them for Rs 772 crore.

Earlier, a departmental inquiry had been ordered into KMSCL's purchases over the past 10 years. Complaints regarding medicines being left in warehouses and subsequently getting destroyed, as well as allegations of corruption in the purchase of bleaching powder, had also been referred for a Vigilance investigation.

A Kerala Kaumudi report, citing figures, had pointed out that KMSCL purchased medicines at prices higher than the rates at which the In-House Drug Bank (IHDB) at Thiruvananthapuram Medical College procured medicines from branded companies. The price difference was as high as five times in some cases. While the IHDB purchases medicines directly from companies without intermediaries, KMSCL's transactions involved intermediaries. The Health Department has also received information that most of the intermediaries had links with influential political and bureaucratic circles.

IAS officers reluctant to head KMSCL amid allegations

The revelations regarding alleged corruption in KMSCL have increased the possibility of a reshuffle in the Health Department. KMSCL currently has no head.

When the present government came to power, Renuraj was heading KMSCL. After Renuraj moved to the National Health Mission (NHM), Anu S. Nair was given charge, but she did not assume the position. H. Dinesh was subsequently given charge, but he also did not take it up.

The assessment is that IAS officers are reluctant to head the corporation amid the allegations of corruption surrounding KMSCL.

"Legal action will be taken against those found guilty in the Vigilance investigation."

— K. Muraleedharan, Health Minister