Tailor-made requirements key to Punjab Health Systems Corporation scam: Report

Tribune News Service

Vishav Bharti

Chandigarh, February 21

From preparing tailor-made requirements to tweaking the tender conditions that was how officials favoured their handpicked suppliers at the Punjab Health Systems Corporation (PHSC). The fact came to the fore in a special audit report of the corporation.

Following multi-crore Covid-related scams, the state government had ordered an audit of purchases at the PHSC for the two-year period from March 2020 to March 2022.

A glaring example of tailor-made requirement was found in procurement of triple layered surgical and N95 masks that were purchased for Rs 2.17 crore.

During the audit, it was found that the PHSC purchased some Covid consumables, including triple layer and N95 masks, for the Election Department and hospitals (Health Department).

As per the records provided to the auditors, these items were purchased at different rates. On further scrutiny of records, the audit team observed that the specifications of the triple layer and N-95 masks was same in both the procurements.

Only specific condition of the ‘BIS approved lab’ was added to the procurement done for hospitals, which seemed restrictive and reduced the competition. Also, this condition was added during the peak requirement of the items.

The corporation was in dire need of the consumables and by imposing restrictive conditions, competition was minimised, which could have inflated their prices.

The record shows that this condition was added to ensure quality, which meant that items purchased for the Election Commission were not of good quality.

“There is no doubt that rules and instructions have not been followed while awarding contract to the supplier. This raises serious concern regarding the corporation’s functioning. The corporation gave undue benefits to M/s Chinar Forge,” states the audit report.

In similar act of tweaking the conditions, the corporation gave rate contract for the procurement of operation theatre tables to NW Overseas, Panipat, worth Rs 5.14 lakh per item for two years.

In this tender, the technical evaluation was revised after opening the financial bid of two responsive bidders already found eligible in the first evaluation.

As per revised technical evaluation, M/s Galaxy India was considered as qualified bidder. Thereafter, financial bid of M/s Galaxy India was opened despite the fact that financial bid of two other responsive bidders was already open and on the public domain.

“The technical evaluation after opening the financial bid raises grave questions on the procedure adopted to give contract and functioning of the corporation in procurement activities. The contract was awarded in an arbitrary manner, which is unjustified. It seems that undue benefit was given to the firm,” the audit report stated.

Paid for maintenance of non-functional assets

As per the audit report there are major discrepancies and financial irregularities in payments made to M/s Kirloskar Technologies Pvt Ltd for the annual maintenance of the equipment used in PHCs, CHCs, CHs and SDHs. The PHSC paid to the firm without verifying the work done by it and seeking report from users. There is an apprehension that corporation paid for some non-functional assets.

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