Central Procurement Agency responds to graft allegations in audit report

The Central Procurement Agency (CPA) has responded to the allegations levelled in the special audit report. The reply had been submitted to the Directorate General of Health Services (DGHS) on Monday. The 86-page special audit report had highlighted several loopholes in the functioning of the procurement agency.

According to sources, the voluminous audit report has raised questions on the functioning of the agency. DNA had earlier reported how the agency was under the scanner for flouting the purchase guidelines.

"The report was received in the DGHS office and it has now been sent to the Secretary (Health) for the final decision," said a senior officer from DGHS. The agency, in its reply, has given a lengthy response to all the queries.

For instance, when asked about the unrecovered amount from the vendors, the CPA said that the suppliers have been pulled up for not paying the dues. "There are several other replies that talks about the unrecovered amount," added the officer.

The Aam Aadmi Party (AAP) government in 2015, had given more teeth to the CPA to ease out the purchasing process. For every medicine or equipment, the hospitals had to put in a demand through the central agency. Before this, the CPA was sending the rate contract to the hospitals and the hospitals used to make the purchases.

But the process soon hit a roadblock. The hospitals were making their own purchases as the CPA failed to meet their demands. As per the process, if a hospital is purchasing any medicine from itself at a higher rate, the CPA must meet the difference and pay back the amount to the government.

"We have submitted the reply to the authorities and now they have to take a decision," said Dr Vijoy Kumar, director, CPA.

The outgoing Directorate General of Health Services (DGHS), Beena Khurana, in February 2017, had suggested a special audit of the agency. In a letter, Khurana raised several concerns regarding the overall functioning of the procurement agency.

In a letter to the health department, the Central Bureau of Investigation (CBI) had also asked the department to submit the records during the dengue period for the year 2015-2016.

AUDIT NEEDED

The outgoing Directorate General of Health Services (DGHS), Beena Khurana, in February 2017, had suggested a special audit of the agency. In a letter, Khurana raised several concerns regarding the overall functioning of the procurement agency.