TDP alleges witch-hunt over vigilance exposure in drug purchase

Naveen S Garewal
Tribune News Service
Hyderabad, February 23

Andhra Pradesh Vigilance and Enforcement Department have claimed to have unearthed a scam of Rs 404.86 crore in the Employees State Insurance Corporation (ESIC) that took place during the regime of former chief minister N Chandrababu Naidu.

Naidu’s Telugu Desam Party (TDP) has however rubbished the claims, which they described as “witch-hunting”.

The vigilance department claimed that three directors responsible for implementing the Insurance Medical Service (IMS) were involved. At least five joint directors and several other staff members were named as suspects in the case, the department said.

State Labour Minister G Jayaram said action would be taken against all those involved based on the vigilance report. He also said K Atchannaidu, Labour Minister in the Chandrababu Naidu Cabinet and other top officials of the department “would be brought to book and the swindled amount would be recovered”.

“We will not hesitate to send them to jail,” Jayaram said.

Atchannaidu, who is currently the deputy leader of the Telugu Desam Legislature Party, denied any wrongdoing and claimed he was only implementing the directives of Prime Minister Narendra Modi.

“In 2016, the Prime Minister convened a meeting of ESIC and wanted the states to introduce telehealth services and the Centre wrote a letter to all States in December 2016 on the same. We had decided to implement that and I asked our officials to follow Telangana model and issued a note,” Atchannaidu said.

He claims records of the transactions were available for verification and that he was ready to face any inquiry.

The Vigilance Department said the three directors were the “kingpins of the procurement scam in the ESI, where gross irregularities were committed in the purchase of drugs, medicines, lab kits, surgical items and furniture between 2014-15 and 2018-19, causing a loss of over Rs 151 crore to the State exchequer”.

Director-General KV Rajendranath Reddy has said huge losses are visible in the total purchases amounting to about Rs 975.79 crore. While the total budget allocation for the purchase of drugs and medicines during their tenure was Rs 293.51 crore, they made purchases worth Rs 698.36 crore, an excess of Rs 404.86 crore, in violation of procedural guidelines, the report reads.