Date:03/12/2008 URL: http://www.thehindu.com/2008/12/03/stories/2008120354680800.htm

Kerala - Thiruvananthapuram

Walkout over drug purchase

Special Correspondent

THIRUVANANTHAPURAM: The Opposition walked out of the Assembly on Tuesday in protest against the State government’s disinclination to conduct an inquiry into the alleged irregularities in the purchase of medicines and surgical aids through the Kerala Medical Services Corporation (KMSC).

The issue of medicine purchase was brought up again in the House on Tuesday by Congress MLA V.D. Satheeshan during the discussion on demands for supplementary grants in the budget. He had sought permission to bring an adjournment motion on the subject on Thursday.

The crux of Mr. Satheeshan’s allegation was that in the purchase of certain surgical aids and medicines, the KMSC had favoured big companies that had not quoted the lowest rates in tenders, thereby causing a loss of around Rs.40 crore to the exchequer. He based his allegations on documents obtained through the Information Commission, he added.

Health Minister P.K. Sreemathy said the purchase procedures followed in the past left room for large-scale corruption.

Lowest quotation was not the only criterion for awarding a supply contract to a company. She said the allegation reflected the grievance of certain suppliers, who had lost out in the bidding.

She said the entire purchase procedure was now being done transparently and all its details were being put on the KMSC web site promptly. She said the documents to which Mr. Satheeshan had referred were very much on the web site.