IMS ex-directors flouted norms in purchase of drugs, equipment

Vijayawada: Anti-Corruption Bureau (ACB) joint director PV Ravi Kumar said the ESI scam was a case of criminal breach of trust, cheating, forgery and misappropriation of government funds and the former officials had caused a loss to the tune of Rs 150 crore to the government exchequer. Speaking to media at the ACB office here on Wednesday, the joint director said the former directors of the Insurance and Medical Services (IMS), Vijayawada, who worked from June 2014 to March 2019 purchased drugs, medical equipment, lab kits, surgical items and furniture by issuing purchase orders without calling tenders, without maintaining note files in violation of norms. So far nine accused were arrested and seven more are yet to be arrested. The ACB JD explained the progress of the sensational case, in which TDP leader and former labour minister K Atchannaidu was also arrested.

He said former directors, IMS, issued purchase orders for procurement of drugs and equipment and others worth Rs 975.79 crore. Of them, orders worth Rs 698.36 crore were for drugs. i.e. 140 per cent beyond the budget provision of Rs 293.51 crore, he added.

Ravi Kumar said directors and the staff of Central Drug Store fabricated the quotations and envelope covers of the quotations to avoid competitive bidding and favour firms of their choice for wrongful personal gains.

He said some of the staff of directorate of IMS floated pharma agencies in the name of their relatives taking advantage of irregularities in procurement of drugs. He cited some names of the companies and narrated how they flouted the norms.