CAG Report in Assembly; corroborating evidence that proves 10.23 crore loss in PPE kit transaction

THIRUVANANTHAPURAM: CAG report saying that there are widespread irregularities in the transactions of the Kerala Medical Services Corporation, which was formed to purchase drugs and hospital equipment. The report confirmed the allegation that there is irregularity of 10.23 crores in the purchase of 15000 PPE kits in 2020, the Covid period.

This was mentioned in the report on public health facilities tabled in the Assembly today. When the matter was pointed out two years ago in the interim report and later by the opposition in the assembly, the government had denied it.

CAG rejected the government's contention that the purchase was made without looking at the price during the emergency and that the Centre had sanctioned it. CAG said that rejecting the product knowing that it would be available at a lower cost cannot be justified. The report also accused of wasting crores of rupees by buying equipment in hospitals in bulk.

Transactions are done in a disarrayed manner which include equipment without people to operate, those bought knowing that there is no accoutrement, those bought knowing that they cannot be operated, those bought knowing that they cannot be repaired, and those that are bought without asking the hospitals.

Justification broken down

• The government had fixed Rs 545 per unit for the PPE kit. Anitha Texcot recorded the lowest amount of 550 rupees in the quotation of six companies.
• Excluding them, orders were placed for the purchase of 15000 kits from five companies such as San pharma, A&A, Innov Quotient, BNS Health and Kitex, who demanded a price of Rs 800 to Rs 1550. The amount was paid in advance.
• When it was pointed out as an irregularity, the government gave an explanation that the order was placed for 50000 kits and 29% of the price was paid in advance. However, the records show that the order was placed for 15000 kits. This is a deliberate disorder.

14 crore loss on equipment transaction

• 7.28 crore loss due to purchase of 172 equipments in 21 hospitals that could not be used.
• 4.94 crores loss as 59 equipments had to be bought and kept unused in Thiruvananthapuram, Alappuzha Medical Colleges and Thiruvananthapuram Dental College.
• 89 lakhs loss due to purchase of 20 non-repairable equipment.
• A total loss of 14 crores.

Helped companies in many ways

Helped the companies by not buying the required medicines, by buying unnecessary medicines, by not taking action if the ordered medicines are not delivered in full, and by not charging compensation if the medicines are of poor quality. It is also reported that there is a liability of crores through this.

1.64 crore penalty was not collected in 82 transactions despite not getting the ordered quantity of medicine. 10% of the price may be charged as liquidated damages in case of delay in delivery of the medicine. 9.76 crores loss was incurred without charging penalty on 332 orders. There was a shortage of medicines in hospitals and patients had to buy them from private drugstores at high prices.