Kozhikode: An internal audit report of the Kerala Medical Services Corporation Limited (KMSCL) has confirmed a loss of nearly ₹50 crore in the procurement of medicines and equipment during the COVID period.

The 72-page draft report, prepared after examining official records with KMSCL, has been submitted to the Managing Director. It found that the purchase of N95 masks alone resulted in a loss of ₹7.63 crore.

The audit highlights serious lapses in procurement, with large sums handed over to various companies in violation of prescribed norms. Government guidelines were ignored, and in several instances, duplicate bills were used. Even companies that had sought lower prices for their products were 'awarded' higher rates.

Citing ‘emergency circumstances,' products were procured at prices up to three times higher than the prevailing market rates. The report also notes that unnecessary purchases of PPE kits and masks continued even after the pandemic had subsided. Although the government had decided that only 50 per cent of the payment would be released in advance, KMSCL paid the full amount before receiving the supplies.

Despite there being no pressing requirement, 39,000 PPE kits were procured between March 2021 and June 22 at a cost of ₹6.56 crore. At a time when PPE kits were available in the market at ₹410 to ₹435, KMSCL purchased them at rates of ₹1,295, ₹1,550, and ₹1,643 per unit, resulting in a loss of ₹4.80 crore.