The matter has been referred to the newly established Anti-Corruption Bureau for examining the entire process to see whether it was conducted in a transparent and fair manner, added the spokesperson.
Jammu and Kashmir Governor Satya Pal Malik has terminated a contract with Reliance General Insurance Company for mediclaim insurance for existing and retired government staffers in the state over alleged irregularities.
"Governor Satya Pal Malik has approved foreclosure of the contract with Reliance General Insurance Company for implementing the Group Mediclaim Health Insurance Policy for the employees and pensioners in the State," said a government spokesman.
The matter has been referred to the newly established Anti-Corruption Bureau for examining the entire process to see whether it was conducted in a transparent and fair manner, added the spokesperson.
The scheme was rolled out last month and was to benefit nearly 3.5 lakh regular employees of the government, while it was optional for pensioners. In an interview to Zee News, Governor Malik, however, had said that the group medical insurance policy of government employees was "full of frauds".
"The government had not issued any tenders while a front company – Trinity – was floated which had invited tenders on behalf of another company. Those bids were not displayed anywhere on our (government's) website. The tenders were changed to suit a particular company. The tender was opened on a holiday to award it to the company," Malik had said.
The government spokesman said ever since sanction was accorded to the implementation of the insurance scheme by the government, doubts were expressed in various quarters, including a cross-section of the society and the media, about the credibility of the process.
"This has cast a shadow on the entire process followed in the finalization of the scheme. The allegations flying around have not stopped but are pouring in the media about the selection of the Insurance Company, more so the selection of the intermediary (Broker)", he said.
"Taking a well-informed view on all aspects and the concerns about the process involved, the Government is of the opinion that in the interest of the government and for enhanced transparency, it would be judicious not to proceed further in the contract with the insurance firm. Therefore, a decision has been taken to foreclose the contract", he said.
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