The Ministry of Health has come under scrutiny after an audit revealed that the government paid a significantly higher price for gauze meters than necessary, causing a financial loss of Rs. 43.6 million. The loss stems from the purchase of 3 million gauze meters from foreign suppliers, which were priced Rs. 14.54 more per unit compared to the local suppliers.
The audit report indicates that there was no pressing need to purchase these meters at inflated prices, as domestic suppliers were already providing them at a lower rate of Rs. 74.96 per meter. Despite this, the Ministry proceeded with the purchase from a foreign supplier at Rs. 89.50 per meter, claiming it was an emergency procurement.
Furthermore, the audit questions the legitimacy of the foreign supply, as the Ministry of Health has not verified whether the meters were sourced from Indian manufacturers or were locally produced.
This irregular purchase was approved by the Procurement Committee, which had submitted the emergency request, but no justification for the urgent need was provided. The report also highlighted that domestic suppliers had already delivered over 3.6 million meters.
The audit has recommended that disciplinary action be taken against the responsible officials and that corrective steps be implemented by December 31, 2024.
