Karnataka government medical stores (GMS) has been caught by the Lok Ayukta along with Vigilance Cell, which has now confirmed reports on the misuse of funds in drugs purchase in the State.

According to sources in Lok Ayukta, there were around seven drugs and chemicals that did not get the approval from the World Health Organisation (WHO) and the central government which were included in the tender. The drugs are Nimesulide tablets, Cefotaxmine injections, Halozone, Clotrimazole cream and Cisapride tablets The 11 drugs that were approved as essential were not purchased.

It is suspected that B B Tambakad, additional director, Government Medical Stores had placed the orders for the supply of drugs not required in any government hospital or institutions without indents and requisitions from the district and peripheral centres. IV fluids worth Rs. 3 crore were ordered at high rates through the Karnataka Antibiotics and Pharmaceuticals Limited (KAPL).

The Lok Ayukta scrutinised the files pertaining to the purchase of the drugs and the chemicals from September 2000 to March 2001. From these files it has been found that the GMS did not receive indents from all the district health officers and the indents received were not proper. The additional director prepared a packaged indent, including all the essential items for the primary health centres (PHCs) which was approved by the director, health and family welfare services. The therapeutic and expert committee while recommending the drugs list should have recorded the reasons and justifications for the inclusion of any non-approved drugs, but this was not done. Instead of Nimesulide tablets which costs Rs. 45.98, Nimesulide (betacyclodextin) was purchased at Rs. 88. The IV fluids were also bought at very high rates through KAPL.

One of the recommendations of the House Committee chaired by MP Nadagouda is that only primary manufacturers of import licence holders in case of imported formulations shall be eligible to participate in the tenders.

But it was found that in the purchase of IV fluids, orders were placed without calling for tenders. A fax message was sent to the joint director GMS on March 27,2001, to inform KAPL and stop all further supplies of IV fluids. However, two days later, the KAPL responded saying that 50 per cent of the supply of IV fluids ordered had been delivered and the remaining were in transit. The government subsequently allowed the execution of the supply orders.

The investigation notes of Lok Ayukta indicate that the IV fluids could have been bought at a lower rate and that a saving of Rs. 30.23 lakh was denied to the government. It has held Dr. Tambakad of GMS and GV Nagaraj former director of health responsible for the irregularities.

When Pharmabiz.com contacted the health department, comments were withheld and so was the case at KAPL where officials were absolutely tightlipped.