ESIC accused of buying 30% excess medicine

Rs 13 cr worth drugs bought overruling purchase panel’s decision,

Y. Maheswara Reddy | NT

Bengaluru: A complaint has been lodged against the Director of Directorate of Employees State Insurance Scheme Medical Services by a social activist for purchasing 30 per cent excess medicines worth Rs 13,80,60,239 as against the analysis submitted by the purchase committee. The purchase of medicines was meant for between March and August 2020.

The Directorate of Employees State Insurance Scheme Medical Services, Labour Department has been providing medical facilities to the patients covered under ESI Scheme and for this purpose, the state government has established around 113 dispensaries, seven hospitals and two diagnostic centres across the state.

The government has constituted a State Level Purchase Committee to buy medicines for the indents received from the ESI Hospitals and Dispensaries.

Medicines are purchased every six months by the directorate and it is the bounden duty of the purchase committee to verify the indents received from the ESI Hospitals and Dispensaries.

During the meeting held on March 5, a proposal was put before the purchase committee to buy medicines worth Rs 49,12,03,465 but the committee had pruned it to Rs 48,95,83,354. However, a decision was later taken to purchase 30 per cent excess medicines based on the proposals made by hospital Medical Superintendents and members of the Purchase Committee.

“The Directorate of Employees State Insurance Scheme Medical Services has violated the norms by purchasing medicines 30 per cent excess. That too before the purchase committee comes into existence,” said Suresh K, an auditor, in a complaint to the Lokayukta.

The Director of the Directorate of Employees State Insurance Scheme Medical Services has sought higher authorities permission to constitute a purchase committee. However, the decision to purchase the medicines was taken much before the government gave its nod for the constitution of the purchase committee.

The decision to purchase 30 per cent excess medicines was taken on March 5, 2020, while the government gave its nod for the constitution of the purchase committee on March 13, 2020. On March 21, the Director of the Directorate of Employees State Insurance Scheme Medical Services wrote a letter to the Secretary, Labour Department seeking approval for the decision to purchase 30 per cent excess medicines. However, the Secretary of the Labour Department has replied on March 23 stating that drug purchase is an internal affair of the Directorate of Employees State Insurance Scheme Medical Services and advised to take a decision as per the rules.

“The Director has abused her position and purchased excess medicines of worth Rs 13.64 crore approximately in the indent of March to August 2020 with corrupt motives and thus caused financial loss to the government exchequer. She has also purchased 20 per cent excess medicines for March 2021 to August 2021.

The Director has accumulated pecuniary resources and property during her tenure by abusing the position in purchase of medicines and also made other purchases related to Covid- 19 items and equipment to the Department and got the favour from those suppliers for providing more business to them,’’ Suresh said in his complaint.