COVID commission highlights irregularities of over ₹264 crore at Kidwai Memorial Institute in Bengaluru

Retired High Court judge's report uncovers ₹264.37 crore irregularities in COVID-19 management at Kidwai Memorial Institute.

The report by retired High Court judge John Michael D’Cunha, who probed alleged irregularities in the purchases during COVID-19 pandemic and its management, during the previous BJP government, has found discrepancies in RTPCR testing, manpower recruitment and procurement of equipment and drugs at the State-run Kidwai Memorial Institute of Oncology (KMIO).

It has recorded irregularities to the tune of ₹264.37 crore at the premier cancer care institute.

Pointing out that these findings were based on a few files submitted to the commission, the report recommended that a separate officer be appointed to conduct a comprehensive probe by studying all files. It recommended that notices be issued against the then Kidwai director, penalties slapped on suppliers, and excess amount paid be recovered from various agencies.

While irregularities in RTPCR testing and manpower recruitment amounted to ₹125.46 crore and ₹74.58 crore, respectively, irregularities in equipment and drug procurement amounted to ₹31.07 crore and ₹33.24 crore.

According to the report, a lab that was run by Kidwai in a public-private partnership (PPP) with Bangalore Medical Systems (BMS) was showcased as an in-house lab and charges were paid to the PPP partner for COVID-19 tests without any tender. This was when no private lab had been authorised for testing COVID-19 samples in Karnataka. 

“Using the certifications of in-house microbiologists, more samples were drawn to BMS resulting in diversion of costs to the PPP partner and misuse of public money. The PPP partner was also given additional staff for which administrative costs were borne by BBMP. This resulted in an extra payment of ₹61,43,470 to BMS,” stated the commission’s report.

“Samples were submitted to BMS from BBMP and Primary Health Centres (PHCs) of different districts. While the records with the commission state that 15,67,476 tests and ₹129.24 crore as amount for payment, the note sheet states 27,68,027 tests were conducted. The total payment done as per the payment details state that ₹125.46 crore was paid to BMS lab (with a pending balance of ₹ 3.77 crore) However, the then institute director had requested BBMP to release ₹13.62 crore for the balance bill, and also stated that 25,46,630 samples were tested for BBMP. These inconsistencies state that there is an overclaim for the testing done at BMS labs,” the report stated.