Within a few days into the anti-rabies vaccine controversy, the Kerala Health department top officials are facing various fresh allegations of corruption, including fund misappropriation in the name of training programmes, and unholy nexus with private companies in deals related to purchase of equipments, medicine and surgical sutures. These irregularities have been detected by the State Auditor General.

According to informed sources, there are irregularities in the Rs.15 crore essential drug local purchases made for this year by the health department. Citing reasons like delay in convening the Central Purchase Committee (CPC) meeting to fix prices, the Health Director himself had ordered for a hasty local purchase to help private players reap huge profits, allege sources.

Orders were given to buy drugs at the maximum quoted price in accordance to the prices offered last year. Further, the companies were offered time extension to carry out orders. The decision was taken in a hurry just before the CPC meet and this was to help the companies, allege sources within the department.

Another allegation pertains to a CPC decision to purchase 80 varieties of surgical sutures worth over Rs.2.5 crore from three private players, ignoring PSUs like Hindustan Latex that manufactures general surgery, gynecology and ortho sutures. In the tender, Hindustan Latex had quoted prices marginally less than the three other companies. However, the expert committee of CPC to inspect samples submitted by the tender participants favored the private players. These companies offer sutures to the nearby states of Tamil Nadu and Karnataka at almost half the prices quoted for Kerala tender, say sources.

Interestingly, the expert committee appointed by CPC consisted of three cardio thoracic surgeons, who never use gynecology, general surgery and ortho sutures in their profession. The committee had 'inspected' about 500 samples within two hours, making a mockery of the whole process. Unlike in other state purchase processes, the sutures samples had labels with brand names, which helped 'experts' to decide upon their favorite choices, allege sources.

They point out the purchase is done at a time when crores worth surgical suture, most unusable, remains idle with various Government hospitals and family planning department stores in the state.

According to Kerala Pharmacists Association, the Government had purchased 20, 230 dozens of catgut chroming 2.2.0. variety sutures in 1998-99 from a company called M.C.O., and had distributed it only by year 2000 to district family planning stores and hospitals. The Health Director had forced his district medical superintends and hospital superintends to purchase the sutures in bulk, despite annual requirement to the state for this was only 230 dozens. Purchase was done at Rs.490 per box, which now costs only less than Rs.300 in the market. Expiry date for the supplied sutures was by September 2003, and now thousands of unusable sutures remain piled up in various hospitals and PHC stores, allege the association.

Meanwhile, in another development, misappropriation of funds worth several lakhs by the health directorate from the state exchequer in the name of training programmes was detected. In 2003-04, the department was allotted Rs.20 lakh for training the medical officers. However, the authorities do not keep any records on how the funds were utilized and whether the programme was done or not.

Similarly, CAG could not find how funds worth over Rs.15 lakh allotted to train Principals of health and family welfare centres in the districts of Eranakulam, Kozhikkode and Thiruvananthapuram were utilized. Funds worth Rs.10.20 lakh were withdrawn to train dental doctors, but the department failed to conduct the programme. Later, these funds, besides Rs.two lakhs drawn to impart computer training to department officials, were remitted back after many months citing reason that the programmes could not be implemented. A detailed enquiry is on to know the details, said sources.