The Justice John Michael D’Cunha Commission, probing irregularities successful Covid-19 procurements successful Karnataka during the pandemic, has flagged respective violations including excess payments and suspicious transactions successful the acquisition of 1,137 ventilators by the Directorate of Medical Education (DME).
Some of the ventilators were procured nether exigency provisions arsenic precocious arsenic January 2022 – overmuch aft the pandemic has subsided. Such purchases, the Commission said, defeated the precise intent of exigency procurement and recommended enactment against officials liable for the lapses.
The findings are portion of a measurement of the interim study submitted by the Commission to the authorities authorities connected August 31 this year. The Commission was formed successful August past twelvemonth and was fixed an hold of six months this August to taxable its last report.
In the 3rd measurement of the interim study which looked into procurements by DME accessed by The Indian Express, it recovered that ventilators worthy Rs 173.26 crore were procured by DME from 2 companies Encarta Pharma and Sun Zen Enterprises.
Encarta Pharma was issued proviso orders for 647 ventilators valued astatine Rs 107.4 crore. However, during the verification of documents, the Commission recovered that neither Encarta Pharma nor DME had documents connected the vouchers for payments made.
“(sic)Though the Invoices successful this respect are disposable connected file, but they bash not carnivore the endorsement regarding outgo and stock. Only the bureau memorandum and note-sheets are disposable successful the file,” the Commission said, noting that outgo of Rs 105.87 crore was made with respect to 5 proviso orders placed betwixt August 2020 and January 2022.
The outgo of the immense sum of Rs 105.87 crore “cannot beryllium substantiated simply by making entries successful the Note Sheet. The concealment of these indispensable documents warrant thorough inquiry,” the study said. It recommended disciplinary enquiry against officials for irregularities, malpractices, and dereliction of duty.
Among the cardinal findings was that a proviso bid was issued to Encarta Pharma for 320 Paediatric and Adult mode ventilators and 90 Neonatal Ventilators connected January 5, 2022. The steadfast past requested DME to merchandise 50 per cent beforehand connected February 8 without submitting a slope guarantee. The fiscal advisor for DME initially noted that beforehand outgo cannot beryllium made without a slope guarantee.
However, helium aboriginal ordered the merchandise of 50 per cent of proviso bid worth taxable to the information of producing Bank Guarantee wrong February 15, 2022, and implicit the proviso wrong February 14. Due to the company’s request, Rs 12.87 crore was paid connected February 9 arsenic advance. But, contempt having a 30-day clip for proviso and installation, they were delivered betwixt April 2022 and January 2023 “defeating the precise intent of exigency procurement”.
Due to the “abnormal hold successful supply”, the Commission observed that the “contract itself ought to person been cancelled. But, by making beforehand outgo of the full declaration value, the procurement bureau has prejudiced the close to enforce the presumption of the declaration against the supplier, for which the acrophobic officer/officials shall beryllium made accountable and answerable.”
DME besides failed to retrieve a hold punishment of Rs 2.03 crore from the company, it said.
Another lawsuit was with respect to the acquisition of 490 ventilators from Sun Zen Enterprises. The institution received 4 proviso orders worthy Rs 71.77 crore for 490 ventilators betwixt March 2020 and January 2022. The archetypal proviso bid successful March 2020 was for 140 ventilators, of which the institution supplied 132. However, lone 52 were installed, according to the findings.
On verification of the records produced by Sun Zen Enterprises, it was recovered that of the 490 ordered, 477 ventilators were supplied and retired of them lone 402 were installed astatine antithetic locations. The Commission said that the “payment successful respect of the uninstalled ventilators is not justified”, noting that Rs 13.39 crore, the outgo of non-installed ventilators, was liable to beryllium recovered from the supplier.