Karnataka Covid ‘scam’: Justice D’Cunha Commission finds purchase of expired RT-PCR kits, items worth Rs 45 crore without approval

Verifying the purchases made without approvals, it noted that proviso orders were placed for these kits astatine astir treble the minimum complaint of Rs 684.4 specified by the TAC.
The findings are portion of the multi-volume interim study connected illegalities successful Covid procurements submitted by the one-man Justice D’Cunha Commission successful August this year, portions of which are accessed by The Indian Express.

The Commission was acceptable up successful August past twelvemonth by the Congress authorities to probe the alleged irregularities that took spot during the pandemic erstwhile the BJP was successful powerfulness successful the state. Among its different findings successful its interim report, it has recommended enactment against erstwhile main curate B S Yediyurappa and erstwhile curate B Sriramulu implicit irregularities successful PPE kits and flagged violations successful respective procurements conducted by authorities bodies nether Health and Family Welfare, and Medical Education Departments.

The Commission has noted that the acquisition of RT-PCR kits was made without quotations and agreement. For instance, proviso orders were placed with Patel Enterprises successful March and April 2020 for 65,000 RT-PCR kits astatine 1,200 each. While the enactment expanse states that outgo per trial was accepted arsenic per the quotation submitted by Patel Enterprises, the quotation was not connected record.

“Without inviting the quotations, the declaration was awarded to the favoured/chosen supplier of the procurement entity”, the Commission said, noting that “the process was designed to payment the supplier evidently successful information of quid pro quo.”

It said that determination were nary documents with KSMSCL showing the organisation of these kits procured from the institution to immoderate taluk oregon district. Similar violations were recovered successful different procurements, wherever the Commission recovered “no quotations, nary agreements, nary validation reports, nary invoices, nary introduction successful banal and contented registers” and sought elaborate enquiry against officials liable for the same.

Procurement aft Covid 2nd wave

Another acquisition of RT-PCR kits flagged by the Commission was successful transportation with a determination to bargain 74.85 lakh kits from Genes 2 Me Pvt Ltd, based connected a TAC determination connected January 1, 2022. Subsequently the TAC decided to procure lone 75 per cent of the quantity and a acquisition bid was issued for 56.14 lakh kits astatine Rs 15.87 per trial connected July 12, 2022.

As the Covid positivity complaint decreased, the bid was kept connected clasp and the aforesaid was communicated to the company. However, this bid was revived connected March 30, 2023, and the institution was asked to proviso 10 lakh RTPCR kits based connected the tender dated July 12, 2022.

The determination successful March was attributed to a proposition from the TAC, but nary grounds shows TAC made specified a decision. The Commission said it recovered nary justification for revising the earlier proviso order. “Though the process to procure these kits was initiated during Covid, by the clip M/s Genes 2 Me Pvt Ltd. was directed to proviso 10,00,000 RTPCR kits, the Covid-19 had already subsided. As specified the procurement has not served the intent of Covid-19. The request and request of this procurement needs to beryllium inquired into by instituting disciplinary enactment against the officers/officials progressive successful the procurement,” it said.

Unvalidated and expired kits

In November 2020, a study by Bangalore Medical College and Research Institute (BMCRI) said that the kits supplied by a steadfast called POCT Services were unsatisfactory. Despite this, a acquisition bid was issued successful favour of POCT services for 4.07 lakh kits astatine Rs 50.40 per unit.

“…. the full outgo made of POCT Services towards the proviso of RTPCR tests of the full worth of Rs 2.05 cr has to beryllium held unauthorized, amerciable and arbitrary and the said magnitude has to beryllium recovered with involvement from POCT services…,” the Commission said, recommending enactment against those responsible.

KSMSCL besides made a akin procurement of unvalidated kits from Imperial Life Sciences (ILS), which received a proviso bid for 5.5 lakh kits successful October 2020. The institution supplied 2.43 lakh kits that were recovered unsatisfactory by BMCRI and successful usurpation of the proviso order, which required trial kits to beryllium validated.

“…in presumption of the invalidation study issued by BMCRI, nary outgo could person been made to the Imperial Life Sciences” for 2.43 lakh units. Yet Rs 1.89 cr was paid, which has to beryllium recovered from the company, the Commission has said. The study noted that unvalidated kits were besides antecedently supplied by the company.
Meanwhile, aft BMCRI’s invalidation study connected ILS, Chief Supervisor (Equipment), KSMSCL was directed to spot orders with different institution called M/s Trivitron to proviso 25 per cent of the quantity which was to beryllium supplied by ILS. This direction, the Commission said, was “ex facie amerciable and beyond the fiscal powers and competence of the Chief Supervisor (Equipment), KSMSCL”.

“… successful the lack of immoderate anterior support by the authorities for procurement of these goods from Trivitron and successful the lack of immoderate quotation oregon tender successful this regard, the contented of proviso bid to Trivitron and consequent outgo of Rs 1,51,96,500/- has to beryllium held arsenic amerciable and unauthorized,” the Commission said. It has sought disciplinary enquiry into the behaviour of the past Chief Supervisor (Equipment), suspecting foul play successful the transaction.

In different cases, RT-PCR kits supplied by JJ Biotech and Q-Line Biotech Ltd, Lucknow, were recovered to person either expired connected the day of proviso oregon were nearing expiry. While the TAC issued directions to initiate enactment for replacement oregon hold of the expiry dates of RT-PCR and RNA extraction kits, KSMSCL did not initiate enactment against the companies.

“Since the KSMSCL has failed to discharge its work and responsibility, the nonaccomplishment caused to the State exchequer to this grade is required to beryllium replenished by the erring officers and/or officials of the KSMSCL arsenic good arsenic the officers and/or officials of the consignee designated laboratories who received the consignment,” the study said, pegging the losses owed to expired kits supplied by companies astatine Rs 3.11 crore.