Panaji: The CAG has pointed out that the delay in finalisation of tenders by Goa Medical College and Hospital for the rear 2016-17 resulted in avoidable extra expenditure of Rs 10.75 crore on procurement of medicines through local purchase.
Mention was made in the Report of the Comptroller and Auditor General of India for the year ended 31 March 2015, Government of Goa regarding inordinate delay in finalisation of annual tenders for procurement of tablets, injectables, ointments, surgical items, chemicals etc, by Goa Medical college and Hospital (GMCH) and the Public Health Department (Department) during 2010-15, leading to merely 25 per cent of total expenditure (Rs 131 crore) being spent on procurement of medicines through tendering process.
“Almost 54 per cent of the expenditure was made on purchase of medicines at old tendered rates, while, another 21 per cent was incurred on local purchases to meet the emergent requirements. Audit, therefore, emphasised the need for reviewing the annual tendering process, which appeared to be long-drawn, and for adopting a time-bound approach for procurement of medicines,” The CAG observed
Further it said, despite being pointed out in audit, there was no palpable improvement in the situation
Audits observed that GMCH and the Department took 17 months’ to finalise the tendering process for the year 2016-17. and GMCH started issuing supply orders to the lowest bidders from October 2017 (i.e. after the end of the financial year 2016-17).
“Pending finalisation of tender for the year 2016-17, GMCH procured medicines (April 2016 to October 2017) from the old suppliers through local purchase at rates significantly higher than that approved by the Department for the year 2016-17, leading to extra expenditure of 10.75 crore, which was largely avoidable,” CAG said.
It added, GMCH stated (January 2020) that delay was not intentional, but, the tendering process was time consuming and performed with limited staff strength (many posts of Pharmaceutical Chemists and Pharmacists were vacant).
Also,it continued, considering the numerous steps involved in the tendering process and involvement of multiple departments, finalisation of tender for the year 2016-17 was delayed.
Further, CAG says, GMCH being the tertiary care institution, cannot function without essential medicines and therefore, these were procured locally with Government approval till finalisation of annual tender for the year 2016-17
“The reply clearly shows that no follow-up action was taken by GMCH and the Department to minimise the tender processing time, despite recommendations of Audit made in previous Audit Report. Further, if GMCH had initiated the tendering process sufficiently in advance and completed the same before commencement of 2016-17, the extra expenditure of 10.75 crore could have been avoided,” it said.
CAG said in the instant case, the tendering process for 2016-17 itself was initiated in April 2016.
“Even if a timeframe of six months is reckoned as being fair and reasonable for finalisation of tender (after constitution of Drug Purchase Committee in April 2016),GMCH could have issued supply orders from October 2016 from the approved tendered rates of 2016-17 and thus capped the extra expenditure at Rs 5.71 cr.
The matter has been referred by CAG to Government of India in July 2019 and reply was awaited, CAG said.
