BBMP investigation report points to Rs 6.7-cr drug scam

Probe indicates favouritism in purchase of medicines, equipment

The ailing Bruhat Bengaluru Mahanagara Palike hospitals, especially the referral and maternity homes, are hit by a scam of Rs 6.76 crore, according to an investigation.

The probe by the Technical Vigilance Cell under Commissioner (TVCC) points to favouritism and vested interests in the purchase of medicines and equipment at the cost of public health.

The only option for the poor, these hospitals have become a milch cow for BBMP health officers, reveals the investigation recommended by Mayor B N Manjunath Reddy.

The probe shows that officers did not bother to check the manufacturing and expiry dates of the medicines purchased as these crucial details are missing from the purchase register. Also, there were no quality test reports of the medicines and equipment purchased. The TVCC report indicates favouritism as all these medicines and equipment were purchased from Bangalore Traders, Prime Enterprises and Mahesh Agency, which neither have past records of supplying medicines to any government agency nor are authorised dealers of any pharmaceutical companies.

“The addresses of suppliers are incomplete while their phone numbers, VAT and TIN numbers are missing. These companies gave different addresses at different points in time for supplying medicines and equipment to the BBMP,” said the report, raising doubts about the very existence of these firms.

The report says fogging machines and sprayers were purchased every year but there are no details to show what happened to the machines purchased in the previous years.

The report cites some glaring irregularities. For instance, Pulakeshinagar Health Officer awarded contract to Bangalore Traders for being the lowest bidder. He makes a comparison with JBJ Marketing, which had not even participated in the bid. Similar modus operandi was adopted in Malleswaram where again, a comparison was made with JBJ Marketing benefiting Bangalore Traders.

Minimum price
In Padmanabha Nagar, Prime Enterprises was shown as quoting the minimum price to supply bleaching powder and phenyl worth Rs 10 lakh but the contract was awarded to Bangalore Traders.

For the purchase of Themophos 50% EC, Prime Enterprises was the lowest bidder but the contract was awarded to JBJ Marketing, which did not participate in the bidding. However, the payment was made to Prime Enterprises.

“The dealings were very confusing,” said the investigating officers of TVCC in their report.
“From 2010-11 to 2014-15, Rs 6.76 crore worth medicines, equipment and furniture were purchased from 33 agencies but three prominent suppliers -- Prime Enterprises (Rs 1.43 crore), Mahesh Agency (Rs 1.23 crore) and Bangalore Traders (Rs 1.23 crore) -- are non-existing firms,” the report said.

The TVCC has recommended stringent action against officials involved and a high-level investigation with proper auditing of these purchases.

When contacted, BBMP commissioner N Manjunatha Prasad said he was examining the report to initiate action against the officers.