The Karnataka government will centralize purchase of drugs for government hospitals to curb irregularities. An estimated Rs.80 crore worth of medicines and equipments are purchased annually by the state government.

The decision comes in the wake of five health officials including BB Tambakur, a retired additional director, government medical store being suspended on December 23, 2003 for irregularities in purchasing IV Fluids, which resulted in Rs.78.85 lakh loss to the government. The health department was purchasing intravenous drugs directly from the Karnataka Pharmaceuticals & Antibiotics Limited (KAPL) and Pooja Pharmaceuticals. The Lok Ayukta has even reportedly suggested the seizure and attachment of property of the additional director who has superannuated.

Kagodu Thimmappa, minister for health and family welfare said that based on the Lok Ayukta's recommendations, the Karnataka Regional Logistics Society headed by the health commissioner, Mohammed Sanulla will hence forth call for indents from all hospitals at the beginning of the year. It will then make the purchases based on the indents.

Hospitals will be given passbooks, which outline their requirements, and they will be allowed to lift the stocks.

He said that the officials would be punished if unnecessary medicines are indented or if the indented medicines are not lifted. "We are in the process of building 14 godowns, such that two adjoining districts are serviced by two godowns", said Muhammed Sanaulla.

"The passbook system is under implementation and will be fully operational in the State by April 2004. With this we are withdrawing the funds given to the Zilla Parishads to purchase the medicines," he said.

Asked how the hospitals will be able to meet the emergencies or the outbreak of epidemics when the indenting of medicines will be an annual exercise, minister for heath and family welfare said that at least 10 per cent of the total funds available for purchase will be reserved for exigencies.