KOZHIKODE: Submitting the purchase vouchers of virus testing kits from a private company that does not manufacture them; passing off Indian-made machines as Italian-made ... these are two of the major corruption deals signed by the Virus Research and Diagnostic Laboratory (VRDL) at the Kozhikode Government Medical College (MCH).
Based on a whistleblower complaint, the Vigilance and Anti-Corruption Bureau (VACB) inspected the MCH. It was in December 2017 that VRDL purchased eight amplisure dengue PCR kits, seven influenza viruses panel RT-PCR kits, three measles virus RT-PCR kits, and seven Flue/HRSV kits for Rs 6.92 lakh from RAS Life Sciences Pvt Ltd.
The MCH principal approved the purchase by superscribing on the file that “kits are received in good condition and it has been entered in the registry of VRDL (sic)”. But a letter written by an RAS top official, accessed by TNIE, claimed the company had neither manufactured nor supplied any of these diagnostics items, except the amplisure dengue kit. The letter said the wrong entry might have caused the error in the VRDL registry.
Another corruption regards the purchase of Indian machines disguised as Italian-made equipment. In 2017, the Maharashtra-based BioLinx India Pvt Ltd supplied two Ultra-Low Temperature Freezers (deep freezer) for Rs 14 lakh. As per the VRDL order, the lab wanted the company to supply the freezers manufactured by the Italian company, Foster Italy. The first machine was installed in June 2018 and the second in August 2019.
But the biomedical engineer raise the suspicion that both the freezers could be refurbished units. It was also pointed out that the supplier had provided the operational manual of an Indian manufacturer when the order was for Italian freezers. However, the supplier withheld the release of accessories and stabiliser as the lab is yet to pay Rs 14 lakh.
The Accountant General’s (AG) audit between May 1, 2018 and September 30, 2019 had objected to the transaction and also expressed dissatisfaction over the reply given by MCH authorities.The AG’s report said the MCH principal had confirmed the audit findings and observed that strict action would be initiated against the supplier, if necessary.
The report, however, concluded that though the machines did not match the description as prescribed by VRDL, there was no loss to the public exchequer as the supplier has not been paid.Industry sources told TNIE the machines installed at the lab would cost only Rs 7 lakh though MCH was billed Rs 14 lakh. An official of a company that has supplied similar medical equipment said deciding the technical specifications of such high-end machines is key.
“The officer in charge of procurement fixes the specifications, along with other top officials. They can include a separate specification to favour a specific company. Officials ask for 8% ‘commission’ (read bribe) for a machine valued at Rs 1 crore. There have been instances of officers bargaining for payback of up to 26% of cost,” the official said.
After inspecting VRDL’s purchase deals, VACB in 2019 had asked the Vigilance directorate to take further action, indicating there was merit in the whistleblower complaint. But no action has yet been initiated.
Kozhikode MCH principal Dr V R Rajendran called the complaint a mere allegation. “There has been no follow-up to the vigilance inspection. That proves the complaint was a mere allegation. If there was substance in the inspection, vigilance would have registered a case, would it not?” he said.
Dr Beena Philomina J, head of the department of microbiology, under which VRDL comes, said MCH principal was the right person to respond to such queries. Former research scientist, who also was the equipment procurement officer at VRDL when it signed the deals in question, was not available for comment.
MORE SHADY DEALS
In 2017, Maharashtra-based BioLinx India Pvt Ltd supplied two Ultra-Low Temperature Freezers for I14 lakh. As per the VRDL order, the lab wanted the company to supply the freezers manufactured by Foster Italy.