A recent report by the Comptroller and Auditor General (CAG) has revealed that the Kerala government significantly overpaid for Personal Protective Equipment (PPE) kits during the COVID-19 pandemic, resulting in an additional expenditure of Rs 10.23 crore. According to the report, PPE kits were procured at a price 300% higher than market rates. On March 28, 2020, the state health department purchased kits for Rs 550 each, but just two days later, another company supplied the same kits for Rs 1,550, reflecting a steep price increase of Rs 1,000 within a short period. The report also noted that a supplier offering lower-priced kits was overlooked, and the entire payment was made in advance to San Pharma, which provided the higher-priced kits.
The report highlights that this purchase took place during the tenure of KK Shailaja, a CPM Central Committee member, who was the Health Minister at the time. Allegations of corruption related to PPE procurement had been previously reported by Asianet News, raising concerns over financial mismanagement in the health department. The opposition has criticized the government for ignoring more affordable procurement options despite offers from four suppliers, including three regular vendors of the Kerala Medical Services Corporation, to provide the kits at lower rates.
In response to the allegations, the government defended its actions by emphasizing the urgency and unprecedented challenges faced during the early stages of the pandemic. Officials justified the decision as an emergency measure to ensure the immediate availability of protective gear for healthcare workers. However, the CAG report has brought renewed scrutiny to the procurement process, with critics arguing that the government failed to exercise due diligence, leading to unnecessary financial losses for the state.
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