Punjab Health Systems Corporation scam: Rs 13 crore goods bought without tender

Vishav Bharti

Chandigarh, February 19

Punjab Health Systems Corporation (PHSC) procured medical supplies worth Rs 60 crore during the pandemic period by “throwing rules to the wind and in an autocratic manner”. These facts came to the fore in a special audit of the corporation conducted by the state government.

Following The Tribune’s series of stories between March and September 2022 on various scams in Covid-related procurement like hand sanitisers, masks, furniture, floor disinfectants, the Punjab Government had ordered a special audit of the purchase that took place between March 2020 and March 2022. The report has noted that during this period, the six IAS officers who were Managing Director, PHSC, were Manvesh Singh Sidhu, Amit Kumar, Kumar Rahul, Surabhi Malik, Tanu Kashyap and Bhupinder Singh. Dr Rajesh Sharma, Dr Manjit Singh and Dr Sharanjit Kaur were Director Procurement.

“It seems that the procurement at the corporation was done in an autocratic way without following due procedure and rules notified by the government. The officials have used their power in an arbitrary manner and was apathetic and unconcerned about the transparency required to be followed in public procurement,” the report observed.

As per the report, purchase of 16 items worth Rs 60 crore took place during this period and rate contracts of various items of several crore were also signed. Like in the case of purchase of Truenat (chip-based real time PCR) test kits and e-stethoscopes worth Rs 9.89 crore, the audit team has noted that “the officials were apathetic in following due procedure and rules framed by the governments.”

A similar observation has been made in procurement of fully auto analysers worth Rs 13.19 crore. The audit found that the supply order of 225 analysers was issued. But the order was placed as repeat order on the basis of a single page order of Department of Animal Husbandry, Bhopal. There are no documents or notings placed on file regarding justification of this procurement. The order for such a huge amount without inviting any tender / bids seems to be an autocratic way of procuring items without following due procedures. “There is a strong possibility of endowing extreme undue financial benefits to the firm…” states the audit.

Discussing the hand sanitiser procurement, the audit observed that the previous L-1 bidder, who was selected for procurement to the Election Commission for supply of hand sanitisers at Rs 54 per bottle, was never asked for additional supply of 1,55,910 bottles.

PHSC initiated the process of procurement on Controller of Stores rates which was Rs 160 per bottle on a request letter received from M/s NW Overseas. Also, the procurement branch did not put up the back history and previous efforts for purchasing hand sanitiser.

Similarly, on the procurement of surface disinfectants (Rs 1,800 per litre disinfectant bought instead of Rs 30 per litre sanitiser), the audit observed that it was done against the requisition of the Health Department and on much higher rates.

Audit findings

• Fully auto analysers worth Rs 13.19 cr bought without inviting bids
• Purchase of hand sanitiser initiated from NW Overseas at Rs 160/bottle against Rs 54/bottle
• Instead of Rs 30/litre sanitiser, surface disinfectant bought for Rs 1,800/litre