The CAG report has raised serious questions over the purchase of medicines by the health care institutions in the state. The report summarized position of medicines and drugs purchased by the test-checked health institutions during the period from 2010-11 to 2014-15.
The report has stated that several supply orders had been issued for procurement from the local open market during 2010-11 to 2014-15 without inviting tenders and in several cases procurements were made on the basis of expired rate contracts.
“Of the 9782 supply orders (Value: 2108.52 crore) placed by the test-checked health institutions, 1898 supply order (19 per cent) (Value: 264.25 crore) had been placed on the basis of Rate Contracts finalized by the Purchase Committees,” the report said.
The report has stated that there were some purchases made on repeat orders that lead to the undue benefits to the suppliers, “797 supply orders (value 227.14 crore) were placed on the basis of Rate Contracts the validity of which had expired, resulting in purchase on repeat order basis and extension of undue benefits to the suppliers,” reads the report.
Large scale procurements (244.28 crore), according to the report “on the basis of expired rate contracts and from the local market was due to the fact that Purchase Committees had not been able to finalize Annual Rate Contracts.”
“168 supply orders (value 23.62 crore) had been placed with Jan Aushudi Stores/ Red Cross/ Super Bazar/ Outside Health Institutions. 6919 supply orders (71 per cent) out of a total of 9782 supply orders (value: 213.52 crore) had been issued for procurement from the local open market during 2010-11 to 2014-15 without inviting tenders,” report stated.
While adding the comments made by the Principal (GMC) Jammu on the issue in August 2015 that due to non-finalization of rate contracts, the hospital had got no option else to explore other sources to avoid any loss of precious lives.