Karnataka files 1st FIR in Rs 167cr scam related to Covid-19 procurements

Bengaluru: Congress government in Karnataka has initiated legal action in the alleged Covid-19 scam by registering an FIR regarding the misappropriation of Rs 167 crore in the procurement of PPE kits and related medical supplies between Sept 2020 and June 2021.

Dr Vishnuprasad M, the chief accounting officer and financial adviser to medical education department, filed a complaint detailing alleged financial misconduct involving government officials, elected representatives, and private enterprises. Among the accused are medical education department former director Dr Girish PG, Raghu PG from accounts and audit department, and health equipment officer Muniraju N. The probe also involves private entities such as Laj Exports from Bengaluru and Prudent Management Solutions from Mumbai.

The FIR cites govt records revealing extensive procurement of medical supplies, including 15.5 lakh PPE kits valued at Rs 203.6 crore and 42.1 lakh N-95 masks costing Rs 9.7 crore.

The complaint centres on a specific contract approved on Aug 18, 2020 for Covid care supplies worth Rs 41.3 crore. Laj Exports was awarded the contract to supply 2.5 lakh PPE kits at Rs 1,312.5 per unit, with a 15-day delivery timeline. However, there is a significant absence of documentation confirming the actual delivery of these supplies to hospitals.

Adding to the complexity, Prudent Management Solutions reportedly received an additional contract for 55,784 PPE kits worth Rs 7.3 crore, allegedly circumventing established procurement protocols. The FIR also points to violations of Karnataka Transparency in Public Procurement Act, suggesting a systematic breach of established procurement guidelines.