Kerala: CM Vijayan bought PPE kits at 300% higher rates, CAG exposes Covid corruption
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Home Bharat

Kerala: CM Vijayan bought PPE kits at 300% higher rates, CAG exposes Covid corruption

According to the CAG report, PPE kits were bought at rates 300% higher than the prescribed prices, with undue favors given to certain firms through advance payments

T SatisanT Satisan
Jan 28, 2025, 04:30 pm IST
inBharat, Kerala
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When countrymen were fighting COVID, Kerala CM P. Vijayan and his CPM-led LDF were alleged to have indulged in large-scale corruption in procuring PPE kits. These lapses came to light when Kerala Congress leader and Leader of the Opposition (LoP) V.D. Satheesan cited the CAG report findings, exposing tainted contracts and terming them the tip of the iceberg of the Kerala government’s mismanagement and corruption during the COVID pandemic.

On Thursday, January 23, in the Kerala State Assembly, V.D. Satheesan presented documents that he claimed highlighted serious lapses and shady decisions of the Kerala Medical Services Corporation Limited (KMSCL) during the pandemic.

Satheesan alleged blatant anomalies in the procurement of Personal Protective Equipment (PPE) kits, underlining contradictions and inconsistencies in the process. He said: “The CAG findings on COVID-19 purchases were just the tip of the iceberg.” He presented documents that reportedly exposed shocking levels of mismanagement and corruption.

Satheesan referred to an email sent by KMSCL to Anitha Texcott on March 28, 2020, expressing interest in purchasing 25,000 PPE kits. However, the same day, by 5:55 PM, an internal KMSCL note revealed that the order had been reduced to 10,000 kits. The note insisted on a 50% advance payment and reluctance to reduce the quoted rate. The document indicated that even ₹550 per kit was too high for KMSCL.

Interestingly, a few hours later, at 7:48 PM on the same day, KMSCL sent a message to San Pharma asking for the company’s address for the purchase of PPE kits and masks. Satheesan found contradictions in KMSCL’s approach, alleging a lack of transparency in the tendering process and decision-making. Adding insult to injury, Satheesan revealed that San Pharma quoted ₹1,550 per PPE kit, which was later approved on March 30, 2020.

പി.പി.ഇ കിറ്റിന് ക്ഷാമം ഉണ്ടായതുകൊണ്ടാണ് കൂടിയ വിലയ്ക്ക് വാങ്ങിയെന്ന കെ.കെ ശൈലജയുടെ വാദം പച്ചക്കള്ളം. 1550 രൂപയ്ക്ക് കിറ്റ് വാങ്ങാന്‍ ഉത്തരവ് നല്‍കുന്നതിന്റെ തലേദിവസം അനിത ടെക്സ്റ്റിക്കോട്ട് എന്ന സ്ഥാപനം 550 രൂപ നിരക്കില്‍ 25,000 കിറ്റുകള്‍ നല്‍കാമെന്ന് പറഞ്ഞിരുന്നു. #COVID19 pic.twitter.com/pHKBKRmmYr

— V D Satheesan (@vdsatheesan) January 22, 2025

According to the CAG reports, the purchase price was 300% higher than the market rate. The entire amount was paid to San Pharma in advance. Initially, Anitha Texcott had quoted ₹550 per kit, but San Pharma quoted ₹1,550, resulting in a loss of ₹10.23 crores.

BJP National Spokesperson (Kerala) Shehzad Poonawalla has also exposed the communist rule, stating, “The Communist model is not the best model, but the worst model.” He referred to the CAG’s findings on the PPE kit scam during the COVID-19 pandemic, which highlighted serious irregularities in the purchase of PPE kits by Kerala. According to the CAG report, PPE kits were bought at rates 300% higher than the prescribed prices, with undue favors given to certain firms through advance payments.

( Kerala ) Communist Model was not the Best Model but the Worst Model

PPE Kit scam during COVID exposed by CAG

CAG report flags irregularities in PPE kits' purchases by Kerala during Covid-19

•CAG report alleged PPE kits bought at rates 300% above prescribed prices
•It… pic.twitter.com/eGcFJogbhX

— Shehzad Jai Hind (@Shehzad_Ind) January 22, 2025

The purchase of PPE kits on March 28, 2020, was at ₹550 per kit, while the purchase on March 30 was at ₹1,550 per kit. Anitha Texcott was initially promised an order for 25,000 kits but was only given an order for 10,000 kits. Meanwhile, orders for 15,000 to 2,00,000 kits were given to other companies at higher prices.

The list is as follows:

Another allegation is that Anitha Texcott was discarded despite supplying 50% of the products within the contracted period at a lower price. On the other hand, products were purchased from companies charging higher prices and with delayed delivery by 23 days. San Pharma was given ₹2.32 crores in advance for 15,000 pieces without quality tests, even though it was a new company. The government’s claim that ₹2.3 crores was 29% of the total value of ₹9.35 crores was rejected by the CAG, which found that the first order was for 15,000 PPE kits.

The CAG report also highlighted other objections, such as the distribution of expired medicines, substandard medical care, and several anomalies in the procurement of medicines through KMSCL. For instance:

  • 2,883 women were denied financial aid under the Janani Suraksha Yojana.
  • Medical aid under the Ayushman Bharat Scheme was delayed.
  • Essential medicines were not supplied by KMSCL—only 536 of the 4,732 medicines required by hospitals were ordered.
  • 50% of the 512 medicines ordered were untraceable, and 307 medicines had no records.
  • The government lost ₹69.25 lakhs for not penalizing delayed supplies, helping pharmaceutical companies avoid fines of ₹9.76 crores.
  • Only 19.03% of medicines were tested for quality, with distributors escaping scrutiny under the pretext of a 10% sample test stipulation.

Kerala has now dropped to the 12th position in per capita health expenses. The suicide rate and road accident deaths in the state are higher than the national average. The CAG report for 2020–2021 indicated that hospitals lack the necessary number of specialist doctors, nurses, and pharmacists. Additionally, there is a 30-35% shortage of ASHA workers and Public Health Centres.

  • The implementation of central schemes has also been unsatisfactory. For example:
  • ₹11.88 crores meant for travel expenses under the Janani Suraksha Scheme were not distributed.
  • Only 65.81%, 35.86%, and 53.52% of funds were spent under the National Senior Citizens Health Protection Scheme, Tobacco Control Programme, and National Programme for Control of Blindness, respectively.
  • Delays were reported in contributions for the Pradhan Mantri Jan Arogya Yojana Insurance.

The CAG report is a harsh indictment of the LDF government, exposing significant lapses and inefficiencies. Despite this, Keralites do not expect substantial changes, as the LDF government often dismisses criticism as attempts to tarnish its image.

In conclusion, this data serves as a perfect example of the communists’ “expertise” in mismanagement and corruption. They’re masters at crafting bold promises that sound impressive at first glance—so bold, in fact, that you’d almost believe them. But when it comes to delivery? Well, that’s where the magic happens—nothing gets done. And of course, they’ve honed their media manipulation skills to perfection, ensuring their carefully crafted image stays intact, all thanks to their ever-loyal media ecosystem.

Topics: Covid scam KeralaKerala CM P Vijayan
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