Shillong: The North East Drugs Suppliers Association in a statement on Friday, alleged that there is corruption and favouritism in tender called by the Directorate of Health Services (MI) for procurement of drugs and chemicals.
The statement further said that the nexus between three main local suppliers/ distributors and officers is visible from the tender.
According to the Association, there is a cartel of the three main suppliers, with one of them being the President of Meghalaya Medicine Suppliers Association, who gets majority of the supply orders and payments. They also operate in their subsidiary firms.
This raises a question mark on the integrity of the department as to why procurements have been invited by way of physical tendering rather than e-tendering, the association said. It added that with healthcare facilities already lacking in the region, it is imperative on the part of the government to probe the matter.
Even before the tenders were called, it was alleged the suppliers had pre-booked majority of the manufacturers resulting in very less or few manufacturers competing. Tender criteria is also set very high at average annual turnover of Rs 50 crore in last 3 financial years, resulting in very less options of manufacturers, majority of whom are pre-booked by the suppliers.
According to the association, in the recently called tender of Intravenous Fluids, 95% of the products won are by the 3 suppliers only and the prices quoted by them are very high. “Shockingly, such sensitive procurements have been invited by way of physical tendering and not e-tendering. It really raises a question mark on the integrity of the department”, it said.
The association said looking at the list of the drugs, some various odd combination of drugs have been desired by the department, which are manufactured by only specific manufacturers which are held by the cartel.
Other state governments do not procure these kinds of drugs, as they are very unique in combination. “This leads to procurement of the drugs at very high prices directly resulting in loss of public money.
“Strangely, the distributor who can effect the supply of drugs has to be from Meghalaya only as per the clause of tender”, the association said. Outside suppliers should have experience in Meghalaya for minimum 5 years.
Strangely, the NIT says no distributors/agents are allowed to paritcipate in the tender.
The association has asked the government to look into the matter and if the government fails to take action soon, the association said it will be left with no other option than to approach the High Court for a thorough investigation into the matter
“It is imperative on the government to investigate the matter and uphold the mission of the Centre to reduce the healthcare cost in the country and not increase it by such pre-determined tenders.