Karnataka government comes out with whitepaper on Covid expenditure

Details of procurement by Health Dept released on Monday, but not those made by BBMP, Medical Education, Social Welfare Depts
Daily wage labourers and homeless people line up to get food, in front of Victoria Hospital in Bengaluru on Monday | PANDARINATH B
Daily wage labourers and homeless people line up to get food, in front of Victoria Hospital in Bengaluru on Monday | PANDARINATH B

BENGALURU: Following Congress’ allegations of misappropriation of funds in the procurement of Covid-19 equipment, the Karnataka Health Ministry on Monday released a white paper on the procurement process, expenditure and reasons for price differences, over five months. Health Minister B Sriramulu said he would quit from his post, if opposition leader in the Assembly Siddaramaiah can prove allegations of corruption. The Health Ministry said that the government was spending only Rs 10.61 crore for ventilators as against the allegation of Rs 18.20 crore expenditure.

While the state is slated to receive 1,600 ventilators from the central government under the PM Cares Scheme free of cost, of which 640 have arrived, it has spent Rs 10.61 crore on 130 standard ventilators from the Mysuru-based company, Skanray, at Rs 5.60 lakh per piece. Of them, 80 have been delivered, while another 28 higher-specification ICU ventilators, whose prices vary from Rs 11 lakh to Rs 18.20 lakh, have been ordered at a cost of Rs 33 crore.

“In March, the sanitiser was priced at Rs 250 for 500 ml, as the demand was high and supply low. But now, it is just Rs 100. In April, we paid Rs 1,444 per PPE piece, and now we pay Rs 575 due to reduced prices and increased manufacturing. When the procurement began in the first week of March, Covid was a new disease and there was no production of any equipment like PPE and N95 masks in the state or country,” said Jawaid Akhtar, Additional Chief Secretary.

In March, N95 masks were sold at Rs 147 per piece and in April, it was sourced at Rs 126 per piece from a company in China. The price has further reduced to Rs 44 per piece now, the department said. Countering the Congress’ allegations of corruption in the tendering and procurement process, Dy CM Dr C N Ashwath Narayan let the Karnataka State Drugs Logistics and Warehousing Society clear the air. “For initial procurements, we contacted our regular suppliers who come under our L1 category to buy sanitisers and drugs,” said N Manjushree, Additional Director, KSDLWS.

All details open to public, says Sriramulu

“We went by the list of companies that came from the GOI for PPE and N95 masks. In April and May, we received quotations locally and post-May, notices for tenders were published in newspapers and our website for each procurement,” N Manjushree added. The Health Department claimed that Rs 79.35 crore has been spent on procuring PPE, while the Congress alleged an expenditure of Rs 150 crore has been made. “Prices of PPE kits with four components, six components and 10 components vary. Orders were placed with companies recommended by the Centre.

Now the cost of PPE kit is Rs 3,900,” said Dr Ashwath Narayan. Orders were placed for 12,12,000 PPEs, of which 9,65,910 have been supplied. Rs 28.5 lakh has been spent on surgical gloves and Rs 2.65 crore on one lakh bottles of sanitisers of 500 ml each, while the rest has come in the form of CSR donations from sugar factories and distilleries, the department said. 

“Just to keep his CM ambitions alive, Siddaramaiah is making baseless allegations. I have placed all details before the public. If anyone is able to prove any corruption allegations, I will quit this position immediately,” said B Sriramulu, Health Minister. Most procurements have been made by the health department, but also by the BBMP, Social Welfare and Medical Education departments. 

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