The timely corrective action taken by the officials of the medical and health department of Andhra Pradesh in ordering an inquiry into the purchase of rapid test kits from South Korea at higher rates helped YSR Congress party president and chief minister Y S Jagan Mohan Reddy from facing the most embarrassing situation.
The government came in for sharp criticism in the media when it was exposed that the AP government had bought rapid tests kits for Coronavirus at a price which was double the rate at which the Chhattisgarh government from the same South Korean company.
While the Korean supplier SD Biosensors Pvt. Ltd, quoted Rs 730 per kit excluding GST for two lakh rapid test kits, Chhattisgarh government said it had bought the same kits from the same company at Rs 337 per kit.
As the price difference kicked up a row causing embarrassment to the Jagan government, it ordered an inquiry. It was revealed that the higher price was quoted by Korean company’s local dealer Sandor Medicaids Pvt Ltd.
On Sunday, Andhra Pradesh Medical Infrastructure Development Corporation Ltd managing director V Vijaya Rama Raju served a show-cause notice on local dealer Sandor Medicaids seeking an explanation as to why the company had quoted a higher price to AP than to other governments.
As per the purchase order conditions, “if any instance comes to the notice of the government that the above medical items are supplied at a lower price than price quoted now, then the differential amount will be recovered from the bills due or any other mode deemed fit.”
“As such it is informed that, the payment will be made as per the Chhattisgarh Medical Services Corporation Limited rate of Rs.337 per each kit excluding GST for the supplies made to the Government of Andhra Pradesh,” the notice said.
The government has also said it would blacklist the company for a minimum period of three years, if the test kits are of substandard quality and do not meet the specifications of the state’s requirements.
On Monday, Jagan complimented the officials for taking corrective measures and ensured that there was no loss to the state government in purchase of the rapid test kits.
“You have proved your sincerity by incorporating the clause that the government would only pay the lowest price at which any other state would purchase. Despite pressures, you have seen to it that there is no corruption involved,” Jagan said.
