Former minister arrested by AP-ACB for alleged role in medical equipment procurement scam

The Andhra Pradesh Anti-Corruption Bureau has arrested former minister Kinjarapu Atchannaidu for his alleged role in a multi-crore scam in procurement of medicines, surgical equipment for use in the ESI hospitals.

The scam took place when he was the labour and employment minister during the previous Chandrababu Naidu regime.

According to ACB joint director Ravi Kumar, the swindled amount is about Rs 150 crore out of a total procurement allocation of Rs 988 crore between 2014 and 2019.

ACB officials said the arrest of the prominent TDP leader took place at 7:30 am on Friday from his residence in Nimmada village of Srikakulam district. Former ESI director CK Ramesh Kumar and another senior official of the Employees State Insurance Corporation were also arrested in Tirupati and Rajahmundry, respectively. Three more officials were
also taken into custody.

“The fraud was mainly in procurement of medicines, lab kits, surgical items and furniture. Purchases, based on fake quotations at 50 to 130 percent above the market rates, were made from companies selected on nomination basis instead of e-tender process,” Kumar told reporters.

TDP chief Chandrababu Naidu described the arrest as Jaganmohan Reddy government’s retribution on Kinjarapu “as he is fighting against the administration on behalf of the backward classes and those denied justice.”

Before the ACB presser, Naidu described the arrest as a kidnap. “What happened to Atchannaidu? The government has got him kidnapped with 100 policemen, in a very unlawful manner,” Naidu tweeted.

One of these companies - Tele Health Services Private Limited, was reportedly given the contract based on Kinjarapu’s letter. Earlier a vigilance department probe into the alleged anomalies had also recognized large scale irregularities.