The Inspection Wing (F/Non-Technical) of the Finance Department of Kerala government has recommended suspension of the state Health Director and Drug Controller, 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 report with recommendations for action will be given to the ministry within a few days, it is learnt.

The wing, which recommended suspension of Health Director V.K.Rajan and Drug Controller T.P.Gopinathan, has also recommended the same for Quilon District Superintend of Health, Dr.Rajan, Civil Surgeon Dr.Manilal and Asst.Surgeon Upendran of Government Quilon District Hospital. The department is said to have detected numerous irregularities in the matter and alleges charges including 'criminal conspiracy' against the officials.

The wing has found fault with the swift action of the Director, who is the authority for Central Purchase Committee (CPC) to the state health machinery, in canceling whole orders for IIL's Abhayrab, following an alleged reaction caused to a patient who was administered the vaccine at the Quilon District Hospital. The decision was taken even before a detailed inspection report from the Central Research Institute (RRI), Kasouli. Though the Drug Controller is the authority to recommend a decision after verifying the studies, the Health Director himself hastily issued orders for canceling the order without considering losses to Government. The decision had DC's unofficial approval, suspect the enquiry team, which recommended punishment against the DC as well.

Dr.Upendran and Manilal had sent a detailed complaint to the concerned department officials on October 19,2002, stating adverse allergic reaction had occurred while administering the vaccine on a patient.

The Wing noted the RRI report had not found any fault with the vaccine manufactured by IIL. Allergy was caused by poor storage facilities at the hospital. The primary investigation report of state DC had said the vaccine was stored at room temperature instead of the recommended temperature of 2 to 8 degree C. A vigilance enquiry ordered by the Government is on to probe the alleged allergy reaction and subsequent developments.

The development points fingers at the alleged attempts of Aventis Pharma, the 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 media, last year. IIL, which quoted low in the tender process for Government purchases, was supplying Abhayrab at Rs.146 per dose, marginally low from Rabipur vaccine prices. IIL had issued more than one lakh doses for one year to the Kerala Government until the controversial allergy reaction surfaced, and resulted in subsequent cancellation of orders and shifting to Rabipur.