ICMR cancels Chinese kit orders, Cong cries scam

Tribune News Service

New Delhi, April 27

After putting on hold the use of rapid antibody kits imported from China for Covid-19 surveillance across states, the ICMR today cancelled the order citing quality concerns. It also asked states to return the kits for further return to suppliers.

ICMR’s statement on cancellation of the procurement order for five lakh antibody test kits imported from Chinese firm Wondfo through an Indian importer and distributor came this evening after the Congress alleged a scam in the matter and asked Prime Minister Narendra Modi to order a probe besides making all Covid medical equipment procurement public.

After Congress alleged profiteering by the Indian importer of the kits and the distributor, terming exploitation during the pandemic an insult to the people, the ICMR said the government had not lost any money as no advance had been paid to Rare Metabolics, the Indian bidder that bagged the rapid kit supply contract.

The ICMR cancelled the order today after its chief Balram Bhargava had a meeting with PM Modi. Later, the council wrote to all states to only use RT-PCR kits to detect virus. “The ICMR has again conducted quality checks on these kits in field conditions. Based on scientific assessment of their performance, the order of Wondfo along with another make found underperforming has been cancelled,” it said.

The ICMR also acknowledged its first attempt at procuring kits directly from Chinese firms had failed.

Earlier, Congress leader Rahul Gandhi said the country would not pardon profiteers in Covid times. “…This scam is an insult to every Indian. I urge the PM to act swiftly to bring the corrupt to justice,” he said.

Not a single rupee lost

ICMR said it had not paid advance to Rare Metabolics for 2.76L kits received so far, so govt didn’t lose a single rupee in the process

How Two Indian companies took ‘Rs18-cr cut’

• ICMR grants Rs30-cr tender to Indian firm Rare Metabolics to procure 5 lakh Chinese rapid test kits @Rs600 each
• Rare Metabolics further engages another Indian firm Matrix Labs to import kits from Chinese firm Wondfo
• Matrix imports 5L kits @Rs245 each, costing Rs12.25 cr
• Matrix gives kits to Rare Metabolics for Rs21 cr, makes Rs7.75 cr profit in the process, it is alleged
• Rare Metabolics supplies kits to ICMR for Rs30 cr (Rs600 a piece), gains Rs9 cr. Together, 2 firms reportedly make Rs18 cr
• Rare Metabolics supplies same kits to Tamil Nadu @ Rs400 a kit
• Matter comes to light in Delhi Hight Court following a cost dispute between Rare Metabolics and Matrix