Rules bent in condom, drug tender for 300cr?
Central agency tweaks procurement specifications, opening door for substandard products
In a virtual snub to Prime Minister Narendra Modi’s austerity drive and his push for rule- based governance, particularly in handling public money, the Union health ministry’s central procurement agency, Central Medical Services Society ( CMSS), has tweaked the procurement specifications in a tender for condoms and drugs, that will eventually lead to sub- standard and poor quality products, endangering public health.
Getting a whiff of this, the health ministry is likely to examine the entire tender process worth ` 300 crores to procure 750 million pieces of condoms and major drugs. The CMSS has, however, denied any wrongdoing.
The government earlier specified only established firms could bid for tenders, and tried to encourage “primary manufacturers”, but the CMSS changed the rules so even small- time agents could bid. The changes were not approved by the technical specifications committee, that comprises top doctors and other eminent experts.
In a blow to Prime Minister Narendra Modi’s austerity drive and his advocacy on adherence to rules while dealing with public money, the country’s Central procurement agency ( CPA) — the Central Medical Services Society ( CMSS) — set up to streamline the procurement process, has tweaked the procurement specifications in a tender for procuring condoms and drugs, which will eventually result in substandard and poor quality products, endangering public health.
Getting a whiff, the health ministry is now expected to look into the entire process of tender nearly worth ` 300 crores for procurement of 750 million pieces of condoms and important drugs. The CMSS has, however, denied any allegations of wrongdoing.
With an aim to maintain quality, the government had earlier put in certain specifications so that established and experienced players could participate in the bidding. While, the rules by the Union health ministry encouraged participation of “primary manufacturers” which could cater to its immense order, the change in the rules by the CMSS will give rise to participation of even small time agents. Moreover, the changes have been made without any approval from the technical specifications committee, empowered to take such decisions. The committee com- prises of various doctors and health experts.
Sources say that the alteration in the rules has been done without any thought process and could lead to a major health crisis, if not checked and put to stop. “Anyone manufacturing condoms have participated in the bidding. The public procurement should be done exercising a lot of caution, it means not only getting low prices but also ensuring quality. This raises a question mark about the professional ability and endurance to public procurement procedures in dealing with exchequers money by the newly appointed CPA of ministry of health. The entire essence of maintaining quality of products is lost by this decision.”
Ironocially, the specifica- tions for procuring antimalarial drugs have too been flouted by the CMSS, an autonomous body under the Union health ministry. The same drugs are also procured by health ministry, however, with different provisions. While the ministry encourages participation of WHO GMP compliant certified manufacturers, differences exist in quality criteria for procurement of anti- malarial drugs by the CMSS.
Navneet Verma, the DG and CEO of CMSS, begs to differ, “The specifications have not been diluted. We have only reworded and given different interpretation for better understanding. There will be no compromise on quality,” he told this newspaper.
Nevertheless, if the tender fails, a huge condom crisis is awaiting the country, stirring fears of higher rate of Sexually Transmitted Diseases ( STD) in the future. While, the procurement crisis threatens, additional secretary and DG ( CGHS), N. S, Kang, said, “I have no idea about this. The process is in the final stages. However, I cannot comment on something I have not seen. The file is yet to come to me,” he said.
The Cabinet had in 2005 directed the health ministry to procure 75% of the total required condoms and other contraceptives from Hindustan Latex Limited ( HLL) every year. The rest 25% was to be procured from the private sector through tender. These condoms are distributed under the government’s AIDS and population control programmes.
Established in 2013, the CMSS has not been able to take off so far, incurring expenditure close to approx ` 3 lakh per day with no effective output.
Sources reveal that a representation regarding the changes in procurement procedures have been given to the health ministry by HLL for condoms and other firms for other drugs. However, no action has been taken as of now. “It has been brought to our notice that the eligibility criteria has been revised. Ideally, they should have taken an approval from the technical committee. However, the matter will soon be taken up in the governing body and examine if it was in right prospective. We have a lot of hopes from this agency but if things are not done in proper way, a huge condom scarcity is likely to happen,” said a senior official in the health ministry.
Getting a whiff, the health ministry is now expected to look into the entire process of tender nearly worth 300 crores for procurement of 750 million pieces of condoms and important drugs. The CMSS has, however, denied any allegations of wrongdoing.