Injudicious drug procurement costs government Rs 16 crore

The CAG flagged the issue after an audit and found that most of the two crore immuno-suppressive tablets purchased during 2013-2014 were unused.
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CHENNAI: A sudden increase in procurement of a particular genre of drug by the Rajiv Gandhi Government General Hospital has caused a loss of Rs16 cr to the state government. The Comptroller and Auditor General of India (CAG) flagged the issue after an audit and found that most of the two crore immuno-suppressive tablets purchased during 2013-2014 were unused and had finally crossed their expiry date last year.

The CAG, in a letter to the Tamil Nadu Medical Services Corporation, the nodal agency that procures medicines for all government hospitals, has questioned the indent for two crore tablets (for 2013-2014) placed by the Rajiv Gandhi Government General Hospital. The quantum of the same category of tablets placed by the hospital in the previous year was just seven lakh. It was also approved by the official who was then holding the additional post of Director of Medical Education. The tablets were said to be supplied immediately after the order was placed.

"Instead of 7 lakh tablets (the quantum purchased the previous year), the hospital management placed an order for procurement of drugs for two crore tablets. The cost of the drugs amounted to `16 crore. Date of expiry of the drugs was in mid 2016. The management raised the indent and  the then Director of Medical Education (in-charge) also approved and sent the proposal to TNMSC. The drugs were supplied to the hospital soon after the indent was placed,” said a senior health department official told Express.

The two tablets, Tacrolimus and Bromocriptine, are drugs used to prevent organ rejection in kidney transplants. The CAG has questioned if the loss of `16 cr could have been avoided had the procurement order been placed more judiciously.

“The fault is on the TNMSC’s side too. The officials should have checked the consumption for the previous year. But, without checking it, TNMSC officials procured the medicine and gave it. Since they are immunosuppressive drugs meant for kidney transplant, the drugs couldn’t be used,” said the health department official.

According to the Rajiv Gandhi Government General Hospital officials, on an average, 70 kidney transplants are conducted every year. This year, 42 kidney transplants have already been conducted. 

A senior doctor said: “Before procurement, TNMSC will check the previous year’s requirement of the particular hospital, and only then will they release it. At most, it could be five to 10 times higher than the previous year’s consumption. That’s the rule. But, procuring multiple times higher drugs for one hospital is surprising.”

The CAG recently sent the letter to the TNMSC, asking for clarification. It has pulled up the officials after a huge amount of these drugs were wasted, added another source.

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