The Kerala government has decided to call for fresh tenders to source anti-rabies vaccine for government hospitals and to cancel the existing controversial Abhayrab vaccine purchase order of the state health department under the Central Purchase Committee (CPC) procurement scheme.

A decision in this regard was announced by the state health minister Kadavoor Shivadasan after consultations with the chief minister AK Antony and top administration authorities of the health department. The minister has also ordered a vigilance probe against the state health director VK Rajan for his alleged role in various allegations of corruption, including fund misappropriation and unholy nexus with private companies in deals related to purchase of equipments, medicine and surgical sutures.

According to the minister, the decision to call for fresh tenders was necessitated mainly due to the severe shortage of anti-rabies vaccine in the state. The government was likely to notify for fresh tenders soon with details, and the finance department has sanctioned immediate funds for the purchase of requisite medicines, vaccine and surgical equipments which face shortage in the state, elaborated the minister.

It is to be noted Pharmabiz had reported that the Inspection Wing (F/Non-Technical) of the Finance Department of Kerala government had recommended suspension of the state health director and other officials for allegedly causing a loss of over Rs.1 crore to the exchequer in shifting purchase order of anti-rabies vaccine from Indian Immunological Lab (IIL) to Aventis Pharma.

The health director, who is the authority for CPC to the state health machinery, is said to have cancelled the whole orders for IIL's Abhayrab vaccine following an alleged reaction caused to a patient who was administered the vaccine at the Quilon District Hospital, last year. Orders were given immediately to purchase Rabipur vaccine manufactured by Aventis Pharma. The decision was taken even before a detailed inspection report from the Central Research Institute (RRI), Kasouli, the report had observed.

Later, the Assembly Estimates Committee of Kerala government, which studied the anti-rabies vaccine purchase issue, had found irregularities in the actions of the health department officials in its preliminary investigation report, and had felt the CPC had not verified the efficacy and quality of Abhayrab vaccine during its purchase and there was no justification in buying a drug for its cheaper price, rather than assessing its quality and efficacy. Even the Indian Medical Association and various arms of the pharmaceutical and healthcare industry in the state had raised a storm over the issue, supporting and opposing the actions of the officials.

The incidents also pointed fingers at the alleged attempts of Aventis Pharma, market leader for anti-rabies vaccine in the country, to retrieve its Kerala government orders for Rabipur vaccine by pressuring and conspiring with the officials as reported by section of the media, during the 2002-03 period.