Karnataka: SIT to probe ‘irregularities’ in medical purchases during Covid-19

Karnataka forms a special investigation team to probe alleged Covid-19 procurement irregularities, following a report highlighting significant misappropriation.

The Karnataka government on Thursday decided to form a special investigation team (SIT) and a cabinet sub-committee to act further on a report of an inquiry commission, which investigated alleged irregularities in the purchase of equipment and medicines during Covid-19, when the Bharatiya Janata Party (BJP) was in power in the southern state.

Karnataka Chief Minister Siddaramaiah. (ANI Photo) (Savitha)

The decision was taken at a cabinet meeting chaired by chief minister Siddaramaiah.

A preliminary report by the Justice Michael D’Cunha commission submitted to the Congress-led government last month had made “serious observations” and highlighted alleged misappropriation of funds to the tune of “crores of rupees” by the former BJP regime, under the leadership of then chief minister B S Yediyurappa.

Speaking to reporters in Bengaluru, law and parliamentary affairs minister H K Patil said: “The report so far has identified irregularities, and the recovery process will begin immediately. It has been decided to constitute an SIT and a cabinet sub-committee for review and monitoring… SIT will look into criminal elements, and wherever wrongdoing is found, appropriate legal action will be taken.”

He added: “The cabinet sub-committee, on the other hand, will be assisted by relevant officers to go into details of other malpractices. It has also been decided to immediately begin the recovery proceedings and to black list those companies or establishments involved in the wrongdoing.”

The panel, headed by retired high court judge Cunha, was formed after the public accounts committee, in a report last year, alleged irregularities in procurement of medicines, equipment and oxygen mismanagement that led to the deaths of people. People aware of the details earlier said that the committee report reviewed purchases and procurements made by family and health services, directorate of medical education, Karnataka state medical supplies corporation, Kidwai Memorial Institute of Oncology, and Bruhat Bengaluru Mahanagara Palike (BBMP)’s central and four zonal offices.

Patil said that in the interim report submitted on August 31, the commission examined expenditure to the tune of ₹7,223.64 crore. “They have not pinpointed that so much (scale) is misappropriation… however, the commission has recommended recovery of ₹500 crore,” he said.

The commission has sought reports from four zones in BBMP and 31 districts of the state and is yet to receive them, the minister said.

Reacting to the announcement, BJP Member of Legislative Council N Ravi Kumar said: “We do not have any problem with SIT or cabinet sub-committee. If there was any corruption, let it come out. It has been more than a year since Siddaramaiah became chief minister, what was the government doing all this while? It is only after the BJP raised the MUDA scam that the Congress has decided to probe procurements during Covid-19.”

In the run up to the Lok Sabha elections this year, Siddaramaiah alleged there was sufficient evidence on the irregularities and that former health minister K Sudhakar would “100%” be imprisoned if the matter was investigated.

Sudhakar, however, accused the state government of “political vendetta” and said he is ready to face an inquiry. “My conscience is clear. I worked hard to protect lives during the pandemic and improve healthcare infrastructure. I will face any legal or political challenges,” he said earlier.

Earlier this week, Raghu GP, a former financial advisor to the department of medical education during the BJP government, was suspended for allegedly violating provisions of the Karnataka Transparency in Public Procurement Act while obtaining personal protective equipment (PPE) kits and other essential medical supplies during the first and second waves of the Covid pandemic.