PC Vishnunadh alleges Rs 1,600cr purchase fraud during COVID. Health minister seeks time to respond

PC Vishnunadh alleges Rs 1,600cr purchase fraud during COVID. Health minister seeks time to respond
PC Vishnunadh

Congress MLA P C Vishnunadh has said that Kerala Medical Services Corporation Limited has indulged in a loot of over Rs 1,600 crore in the purchase of PPE kits, gloves and infrared thermometers during the initial phase of the pandemic. He alleged that paper companies were given orders for equipment at prices considerably above market prices, and even after availability was ensured at far lower prices.

The allegations were made during the discussion on the Governor's address in the Assembly on Monday.

Vishnunadh said that the KMSCL first placed an order for PPE kits with Keron on January 30, 2020, ten days after the first COVID case was reported. "But a decision on the letter of intent was delayed for two months, and finally on March 29, the company was offered the letter of intent, " Vishnunadh said. Keron was to provide PPE kits at Rs 500 per kit.

Vishnunadh said on the very same day, March 29, the KMSCL received an email from another company named San Pharma saying it could provide PPE kits.

"The very next day, March 30, San Pharma was issued an order to supply PPE kits at a whopping Rs 1,550 per kit. It has to be noted that such a high price was given even though PPE kit availability was not an issue," Vishnunadh said.

He said that a company check revealed that no such company existed. The company had shut down in 2014. "The KMSCL also had no idea about the quality of the company's products as they had not supplied medical equipment before," Vishnunadh said.

Something similar happened in the case of gloves. The KMSCL had decided to purchase one crore gloves and for this an order was placed with Agrato Avion at Rs 12 per gloves.

However, Agrato could supply just 40 lakh gloves. "To make up for the shortfall, the KMSCL placed online orders for the rest with two companies but at far lower prices of Rs 8.78 and Rs 7," Vishnunadh said. Agrato did supply the remaining 60 lakh very late and these were dumped in a godown in Kochi.

"Even these gloves the KMSCL had planned to purchase for Rs 10 a piece, " Vishnunadh said and added: "But I have gathered that the new health minister had blocked the purchase."

Agrato, too, was a paper company registered just four months before the orders were placed.

Further, Vishnunadh said that infrared thermometers were purchased by the KMSCL from Thrissur Surgicals at a cost of Rs 5,390 per thermometer when the market price hovered between Rs 1,500 and Rs 2,000. Thrissur Surgicals was also found to be a paper company with no previous supply history.

Health Minister Veena George said that the allegations were raised earlier and were answered by her predecessor, K K Shailaja.

Leader of Opposition V D Satheesan quickly countered this saying that Shailaja had then only said that a PPE kit could have been purchased for even Rs 300 but it was quality that prompted KMSCL to buy them at Rs 500. "Our question is how could these kits be bought for Rs 1,550," he said.

Veena George said she needed more time to answer.

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