CAG Report: Kerala Government's Overpriced PPE Kit Sales During Covid

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CAG Report: Kerala Government's Overpriced PPE Kit Sales During Covid

Synopsis

A recent CAG report revealed that the Kerala government, led by Chief Minister Pinarayi Vijayan, sold PPE kits at inflated prices during the Covid pandemic, resulting in significant financial losses. The investigation has sparked political controversy, with allegations of malpractice directed at top officials.

Key Takeaways

  • CAG report highlights inflated PPE kit prices.
  • Kerala government faced Rs 10 crores loss.
  • Political fallout involving Chief Minister and Health Minister.
  • Accusations of political witch-hunting by CPI-M.
  • Expert commentary deems it a robbery.

Thiruvananthapuram, Jan 21 (NationPress) A report from the Comptroller and Audit General (CAG) presented to the Kerala Legislative Assembly on Tuesday disclosed that during the Covid pandemic, the government of Kerala, under Chief Minister Pinarayi Vijayan, sold PPE kits at unreasonably high prices.

The findings indicated that the PPE kit, which was available for Rs 550, was procured at a cost of Rs 1550, resulting in a financial loss of Rs 10 crores.

In March 2020, Kerala reported the first COVID-19 case in the nation.

The Leader of Opposition in Kerala, V.D. Satheesan, accused Chief Minister Vijayan and former Health Minister K.K. Shailaja of being the main offenders in this significant scandal, while the CPI-M party dismissed the allegations as mere political persecution by the central government.

“We had raised this issue previously, and now the CAG has validated this huge scam. We will pursue this matter as we did in the past. Currently, a case related to this is ongoing. Shailaja authorized the order for PPE kits after receiving approval from Vijayan,” stated Satheesan.

He further mentioned that three companies had proposed to supply PPE kits for Rs 500, yet the order was allocated to San Pharma at Rs 1550 per kit.

“Shailaja previously acknowledged that the order was issued per Vijayan's instructions. Critically, a full advance payment was made to San Pharma. What we highlighted in 2021-22 has now been confirmed by the CAG,” added Satheesan.

Despite this, CPI-M leader K. Anilkumar dismissed the allegations as political persecution, questioning the timing of the CAG's findings.

“The central government is using institutions to target the CPI-M government, and this is the latest instance,” asserted Anilkumar.

S.S. Lal, a prominent health expert affiliated with the WHO, described the situation as blatant theft by the Kerala government.

“The Health Department serves as a lucrative opportunity for those involved in procurement. Despite my political stance, I am addressing this issue as a health expert. The CAG's criticism of the Kerala government is justified,” said Lal, who was a Congress candidate in the 2021 Assembly elections.