Pharmabiz
 

CAG finds irregularities in purchase of drugs under NRHM

Joseph Alexander, New DelhiThursday, May 20, 2010, 08:00 Hrs  [IST]

The Comptroller and Auditor General of India (CAG) has unearthed many irregularities such as absence of standard tender process, ignoring of lowest rates, and procurement from blacklisted suppliers involving a total of Rs 36.07 crore loss to the exchequer in many states. The performance audit by CAG on the procurement of drugs under the National Rural Health Mission (NRHM) also noted that while the Union Health Ministry had set up an Empowered Procurement Wing (EPW) and developed a comprehensive procurement manual centrally, in 26 States/UTs, no such procurement manual had been prepared. “Neither was a formulary list of drugs available nor was standard bid documents adopted in 13 States. Inadequate procurement planning also effected equipment utilisation in the States with Rs 3.96 crore of equipment lying unutilised in six States. Cold chain equipment worth Rs 10.43 crore and telemedicine facility equipped mobile medical units on which Rs 10.72 crore had been spent, remaining non-functional due to lack of supporting infrastructure in Jharkhand. In nine States, the stock of essential drugs, contraceptives and vaccines adequate for two months consumption as required under norms were not available in any of the test checked PHCs and CHCs,” according to the report. In Uttar Pradesh, standard bidding process such as invitation of open tenders was not followed to avail the benefit of competitive rates in purchase of medicines and result was the loss of Rs 25.66 crore. In Jharkhand, drugs were purchased by SHS from a company blacklisted by Gujarat, Rajasthan and Maharashtra due to supply of sub-standard drugs. Quality test was also not conducted before payment and the loss was Rs 6.20 crore. The State RCH Society purchased medicine/syringe without floating tender worth Rs 2.66 crore in Jharkhand. Chattisgarh accepted tender of a firm after due date and placed supply order, and thus caused a damage of Rs 1.20 crore while Manipur procured generators worth Rs 35 lakh without any tenders, as per the report. The CAG also found that the health ministry had violated the norms in the purchase of vaccines. The Ministry had placed supply orders of Rs 22.37 crore for 1440 lakh doses of DPT vaccines in three agencies (at the rate Rs 13.40 per vial for 340 lakh doses from one company, at the rate Rs 14.37 per vial for 300 lakh doses from another firm and at the rate Rs 16.88 per vial for 800 lakh doses from a third firm) by adopting the process of limited tender inquiry in July 2008. The limited tender inquiry involving bids from four agencies was in contravention to the stipulated norms which required open tendering for procurement of goods above Rs 25 lakh. In seven States medical equipment worth Rs 24.69 crore were lying unutilised, resulting in non-achievement of scheme objective and blocking of funds, the report found. These include diagnostic equipments in Orissa, 26 laparoscopes and 40 anaesthesia machines in Maharashtra, and glass syringes purchased without requirement in Karnataka.

 
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