NEW DELHI: The Delhi Health Services (DHS) has blacklisted ten firms who were found involved in supply of substandard medicines, consumables and equipment to the city hospitals. The department has ordered to stop placement of new orders and clearance of dues to the firms till the loss incurred by the government is calculated.
According to the department, the entire supply chain of medicines and consumables were compromised by these firms who acted as ‘health mafia’.
“It is to intimate that following ten distributor/dealer firms and owners and directors of the firms have been blacklisted by CPA (Central Procurement Agency, DGHS, GNCTD) due to their involvement in tender pooling / cartel formation in CPA medicine tenders & sub-standard supplies in GNCTD hospitals and institutions and operating as health mafia.
After investigation, it has been uncovered that these companies and suppliers are dealers of the manufacturing companies that participated in the tenders. This indicates collaboration and the pooling of tenders within the CPA tenders,” health department order read.
Alleging corruption of the entire supply chain, the order said, “The evidence strongly suggests fraudulent activities by these companies and suppliers with the institution. The entire supply chain is corrupt and done fraud with institutions.”
“These firms are also found to be behind supply of substandard medicines, consumables and equipment. These companies extracted huge margins from manufacturers by consolidating tenders, and this should require proper investigation and be made to recover these funds from these suppliers. Above ten firms seem to be habitual offenders so their supply to individual hospitals/institutions may also be subjected to scrutiny. Stop Payment is hereby ordered against above ten firms till loss to the exchequer is calculated and recovery is done,” it added.
Meanwhile, the department has also issued instructions to all medical directors to establish a three-member senior committee tasked with initiating the necessary recovery process by checking sales, purchases and commissions invoice from the ten firms involved.
Certain drugs, including antibiotics, steroids, anti-anxiety pills, and others, available at government health facilities failed quality tests and were found potentially life-threatening for a vast population as they are prescribed in treatment of a range of illnesses.
Central agency probes alleged corruption
The Central Bureau of Investigation is already looking into the spurious drugs supplied in the Delhi government-run hospitals. Certain drugs, prescribed in treatment of a range of illnesses such as antibiotics, steroids, anti-anxiety pills and a medicine for hypertension, available at government health facilities failed quality tests and were found potentially life-threatening for a vast population.