The Comptroller and Auditor General of India (CAG) has recommended inquiry into the procurement of medicines at high rates from non-approved manufacturers by the Directorate of Health Services (Medical Institutions) and fix responsibility on officials (s) concerned for the lapses.
The DHS (MI) was found to procure medicines at higher rates than the approved rates of the Central Purchase Board from non-approved manufacturers, which resulted in avoidable excess expenditure of Rs 0.87 crore.
As per the audit report, the directorate had ordered 2 lakh bottles of dry syrup (Cefpodoxime Proxitil 50 mg + Clavulanic Acid 125 mg 30 ml) at the rate of Rs 70.40 per bottle from Arengh Medical Supplier, Tura and 80,370 strips of tablets (Tab Ofloxacin 200mg + Ornidazole (Ornidazole) 500mg) from Wholesale Pharmaceuticals, Shillong at the rate of Rs 90 per strip during January to May, 2019.
While the directorate stated that the two medicines were included in the Essential Drug List and they were procured on emergency basis due to urgent requisition from districts, the CAG said, this was not acceptable since 1.50 lakh bottles of dry syrup and the tablets ordered on January 31, 2019 were supplied/delivered by the suppliers only in December, 2019 and September 2020 respectively.
“This is after 11 to 19 months from the date of placing the orders. As such, the procurement cannot be termed as emergency purchase which necessitated procurement of these medicines at higher rates,” the CAG said.
Besides it was also revealed that the DHS (MI) could not furnish copies of indents for the medicines from the district authorities, nor did they produce recorded evidence of inability of the approved suppliers to supply the medicines.
Moreover, no documentary evidence was produced in support of any action taken against the defaulting firms for breach of contractual obligations.
According to the CAG, the Central Purchase Board (CPB) headed by the Additional Chief Secretary had listed the approved rate of Essential Drugs List-2019 containing 1,329 medicines along with names of approved manufacturers for supply of the drugs after tenders were floated.
The board had approved Maxmed Lifescience Private Limited, New Delhi and East African (India) Overseas, Uttarakhand for supply of the two medicines.
The rate of the dry syrup and tablet as per the approved list are Rs 53 per bottle and Rs 25 per strip of 10 tablets respectively.
