CPM demands action against ESI Director

Musheerabad: The CPI(M) has demanded that the State government take against the state ESI Director who is allegedly responsible for a scam of Rs 100 crore in purchases of medicines. CPI(M) city secretary M Srinivas was speaking to the media at the central city committee office of the party at Golconda crossroads on Monday.

Speaking to the media here on Monday, Srinivas said that as the vigilance department has confirmed that the insurance department officials have violated the norms deliberately for purchasing medicines and medical devises necessary for all the ESI hospitals, dispensaries and diagnostic centres for various agencies.

In the years 2016-17 and 2017-18, the officials spent Rs 327 crore for buying medicines and devices in non-rate contract department without following the government rules and regulations, he said.

He said that it was found that most of the purchases were made from the companies of the same family without calling for tenders. It was found that the medicines were purchased at prices which were 100 to 350 per cent more than the original prices, he said.

As per GO 21, medicines should be purchased after forming a drug collection committee, tender scrutiny committee and local purchasing committee but the officials deliberately divided the tenders into smaller tenders and allotted to the parties favourable to them, he said.

The CPI (M) leader said that the state government has taken no action against the Director although the Vigilance Department submitted its report four months ago. He demanded the state government to take against the officials concerned responsible and the drug companies involved in the scam. CPI(M) leaders Dasharath and Mahender were present on the occasion.