HEALTH DEPARTMENT NEEDS A CHECK UP Health Department’s Purchase of Heart Care equipments gives Heart Attack 1st September 2010 Issue

         

By Firoz.T.Totanawala

The Bangalore Metro Reporter

1st September 2010 Issue

              HEALTH DEPARTMENT NEEDS A CHECK UP

    Health Department’s Purchase of Heart Care equipments gives Heart Attack

We had exposed the manipulations of the Health department in the past issue pertaining to the irrational purchase of High Frequency sophisticated X-Ray machines in the name of up gradation of the Government run hospitals. We bring to you another open and clear manipulation undertaken by the officials of the Health department to mint money out it.  

This time it is with regard to the purchase of ventilators and Defibrillators for the District hospitals. Ventilators and Defibrillators are basically first aid equipments used in heart care and it did not cost more than Rs. 2 lakhs in the market in the year 2006.

However, the Directorate purchased 25 ventilators at the rate of 5.50 lakhs and 27 Defibrillators at the rate of 6.25 lakhs. The entire script for this scam was written by Ramesh, the DD(M) and executed to perfection by Eswar Prasad, the then Health Equipment officer, approved by the then Director Prasad and CAO Krishnappa, who put his financial seal on this financial blunder.

TENDERING THE FRAUD

It all began in the year 2006 when the Director of Health &Family Services floated a tender for supply of 25 ventilators and 27 defibrillators for District Hospitals in the state. The tender process was itself a hush hush affair. Save Meditech System which is a supplying firm, made a bid for the tender along with other two created Benami firms. Obviously, the other two bids submitted in the name of Benami firms got eliminated in the tender on technical grounds, as per the plan and only Save Meditech Systems remained as the potential bidder. Actually in such circumstances, the Departments are required to go for re- Tender process, but since the ‘deal’ was already fixed before and the tender process was meant for a mere eye wash, Save Meditech System was awarded the tender.

THE HEALTHY UNION

Ramesh, a DD (M) is an expert personality in manipulative tenders and purchases. The DH&FS Prasad is also a famous corrupt to the core official. The CAO Krishnappa can do any damn thing for the sake of money. And Eswar Prasad, the Health Equipment Officer too was an exceptional in manipulative purchases. With such a great team of dedicated and apt corrupt officials, the Health Department was destined to excel in the field of manipulation and swindling. Thus, the tender was meant for the Save Meditech System.

NO, NOT ENOUGH

But what about the purchase price of these equipments? While both the Ventilators and Defibrillators did not cost more than Rs. 2 lakhs in the open market, the firm quoted the price of about Rs. 3 lakhs in the tender. This was inclusive of VAT charges and the kickback amount as required for the Health Department officials. However, the officials were not satisfied the amount they would earn out of this deal and therefore blatantly decided to raise up the cost of purchase. Since there was only one single potential bidder by now, it was very easy for them to change the quote for an extra amount. After all their internal calculations and manipulations, the quote in the tender was raised to Rs. 5.50 lakhs for each Ventilator and Rs. 6.25 lakhs for each Defibrillator. 

PUBLIC MONEY, OUR MONEY

The supply order was then immediately issued to the firm. In fact, the supply orders were split and the firm was actually given repeat orders totaling to a massive Rs. 3.06 crores. It is indeed a shock to imagine the Directorate placing the orders for equipments at three or four times its market rate. While the entire procurement would not have cost more than Rs. 1 crore if proper and competitive tenders were obtained, the Government had to actually shell out Rs. 3.06 crores of public money all because of the crooked Health officials.

CHANGING THE HISTORY

It is also learnt that the crooked Health officials have misplaced the file and also tempered with some details pertaining to the procurement of these first aid equipment. Whatsoever, the fact is that even today; the Ventilators and Defibrillators do not cost more than Rs. 3 lakhs in the market.  

All said and done, the Health Department officials jointly with the supplier have successfully made a good fortune out of the procurement deal and still moving about freely. We bring to you this scam with the hope that the culprits are booked and penalized for their frauds which also eventually helps curb down the manipulations undertaken by the Health officials of the department.