Lokayukta sets sights on eight medical officers

Finds irregularities in tendering process; medicines purchased at 300% of actual cost exerting pointless expense to state exchequer

Eight medical officers are under the Lokayukta scanner for irregularities in connection with the tendering process by Karnataka State Drug Logistics and Warehousing Society (KSDL and WS) for the year 2010-11, and also for procurement of drugs from Karnataka Antibiotics and Pharmaceuticals Limited (KAPL). Although the Lokayukta report mentions involvement of many officers, no big names have emerged so far.


Scrutiny: Although the Lokayukta report mentions involvement of many
officers, no big names have emerged so far. file pic

Commenting on the investigation, Justice N Santhosh Hegde said, "I have gone through the report submitted by the committee of Doctors of Health Foundation. Recommendations include making KSDL more effective and service oriented."

He added, "We have also stressed on appointing a technically qualified person as Additional Director (AD), providing separate staffing pattern, revamping committee members and merit consideration. It is essential that the competent authority takes positive action in that direction."

Three complaints by Marulasiddaiah, Shamanna and Diwakara Reddy were registered with the Lokayukta last year alleging that severe irregularities were present in the call for tender for the purchase of medicines to favour one company. The AD, KSDL and WS has ignored essential medicines and finalised the purchase of 93 medicines out of 700.

A major portion of the Rs 50 crore spent went towards the purchase of IV fluids. The complaint also pointed at that the purchase was made with ulterior motives, since the price paid for the medicines was 200 per cent to 300 per cent more than the actual cost. It also mentioned that some items were only purchased to benefit the supplier.

Report reveals...
The detailed report submitted by the Lokayukta indicated that during December 2009 and March 2010, the KSDL and WS has purchased drugs amounting to Rs 50 crore, of which a substantial amount was spent on IV fluids.

The quantity procured was above the annual requirement of the institution, and several institutions did not even space to accommodate the material. The report also pointed out that there was malafide by the officials concerned in purchasing IV fluids in non PVC self collapsible bags, which costs Rs 43, while its alternative in FFS bags costs Rs 9.

"The purchase of huge quantities of IV fluids was unscientific and caused unnecessary expenses to the state exchequer," Hegde added. Also, irregularities were seen in purchase of syringes, as former commissioner Srinivasachar had given directions to purchase disposable syringes and not AD syringes with fixed needles.

Purchase of the latter has caused a loss of Rs 16 crore. It was also found that some materials like Antesol, Linde Lotion, Citrimide and Calamine lotion, though not necessary, were purchased causing further loss to the government. In addition, essential life saving drugs was cornered to make way for food supplements.