Central oxygen system not operational at Agra hospital even after 10 years: CAG report

CAG report pinpoints unfruitful expenditure of ₹1.88 crore on central oxygen system as the Agra district hospital continued to depend on small cylinders to maintain oxygen supply to the wards.

In its audit report, the Comptroller and Auditor General (CAG) has said the lackadaisical approach of the Uttar Pradesh medical health and family welfare department resulted in unfruitful expenditure of ₹1.88 crore on the procurement of a central oxygen system (COS) for the Agra district hospital which could not be made operational even after a lapse of more than 10 years.

The CAG report noted that even after investment, government hospitals remained ill-equipped in terms of oxygen supply. (PICTURE FOR REPRESENTATION )

Uttar Pradesh parliamentary affairs minister Suresh Khanna tabled the report on the general and social sector for the year ending March 31, 2019, in the state assembly on Thursday.

The scrutiny of records of the office of the superintendent-in- chief at the Agra district hospital (male) revealed that the UP government had sanctioned ₹2.76 crore in 2010 and ₹2.70 crore in 2011 for the procurement of equipment and materials to upgrade the medical facilities in the same hospital, according to the report.

Nevertheless, the COS remained non-operational even after a decade, the report added.

When Covid patients were hit hard by oxygen crisis during the second wave (April- May), the state government transported oxygen from various parts of the country to maintain the stock in hospitals. Hundreds of attendants were seen in queues outside filling stations to get medical gas for their family members battling Covid-19 in hospitals at that time.

The CAG report showed that even after investment, government hospitals remained ill-equipped in terms of oxygen supply.

The CAG report also observed that the Agra district hospital invited tenders and executed an agreement with two firms in March 2010 and February 2012 for the supply of various equipment, including central oxygen system (COS) for 50-bed and 60-bed wards. The COS was supplied by the firms at a cost of ₹0.83 crore and ₹1.29 crore respectively.

The agreement executed by the Agra district hospital with the suppliers did not incorporate a clause for the release of payment on the successful installation and commissioning of the oxygen system, the report noted.

The hospital made a payment of ₹2.12 crore to the supplier after installation of the equipment. The hospital staff were not trained to run the COS, nor it was made operational, the report said.

The security deposit made by the suppliers could not be forfeited as it was taken in a non-recognized form through cheques, it said.

Later, the director general medical and health services (DGMHS), Uttar Pradesh, directed the Agra district hospital to submit the particulars of the superintendents of hospitals, who were posted during 2009-12 and 2016-17 for action over irregularities committed in the installation of the COS.

In May 2017, the then Agra district magistrate wrote a letter to both the suppliers to make the COS operational. Only one supplier submitted a revised estimate of ₹3.61 lakh to make the COS operational. The amount was not released by DGMHS.

The state government, during discussion in December 2017, accepted the audit observation and assured investigation to fix responsibilities to check recurrence of such situations in the future. The information regarding action taken by the state government is still awaited, the report said.

The CAG stated that expenditure of ₹1.88 crore on COS had been rendered unfruitful. The COS was lying non- functional, and the hospital continued to depend on small cylinders to maintain oxygen supply to the wards, it said.

3,339 purchase orders not executed

The CAG audit report noted that a scrutiny of the records of chief medical officers (CMOs) and chief medical superintendents (CMSs) of 11 districts during August 2016 and September 2017 revealed that 3,339 purchase orders valued at ₹37.37 crore and placed to 374 suppliers remained unexecuted even after lapse of 60 days from their placement. The purchase orders were automatically cancelled.

Accordingly, as per conditions of supply, liquidated damage at the rate of 20% and 15 % on the value of unexecuted orders amounting to ₹6.21 crore were required to be recovered from the suppliers. No liquidated damages were recovered except ₹4.47 lakh by CMO, Bareilly.

There was an undue benefit of ₹6.17 crore to the suppliers, CAG observed.