J'Khand medical & health infra entity fails to utilise 88pc of funds for drug procurement: CAG

Ranchi, Mar 16 (PTI) The Comptroller and Auditor General of India (CAG) on Wednesday pulled up a Jharkhand government entity, entrusted with procurement of medicines, surgical goods, medical equipment, for failing to utilise 88 per cent of the Rs 100.31 crore fund allotted to it.

The auditor also pointed out that Jharkhand Medical & Health Infrastructure Development & Procurement Corporation Ltd had spent only 79 per cent of available National Health Mission funds for purchase of drugs during the 2016-19 period.

JMHIDPCL was established in 2013 under the aegis of the state health department.

"JMHIDPCL could not utilise state funds amounting to Rs 87.85 crore (88 per cent) out of Rs 100.31 crore on procurement of drugs which was refunded (June 2020) to the department.

"Further, only Rs 40.54 crore (79 per cent) was spent out of available NHM funds for purchase of drugs during 2016-19 and the balance of Rs 12.243 crore was lying in the bank account of JMHIDPCL," the CAG said in its latest report tabled in the Jharkhand assembly.

A performance audit of district hospital outcomes in Jharkhand, covering the period between 2014 and 2019, was carried out by the CAG in 2019-20 with the objective of assessing the quality of medical services and patient care being provided by the state-run health facilities.

The CAG also said the district hospitals (DHs) procured medicines from local vendors without quality testing in the absence of centralised purchase of drugs by JMHIDPCL.

"Only 11 to 23 per cent of essential drugs were available with the DHs during 2017-19. The available drugs also became out of stock for a considerable period due to less procurement as compared to requirement," it said.

The authorities of DHs did not adhere to norms for storage of drugs, which were directly linked with loss of efficacy and shelf life of drugs, it said.

The auditor recommended that the authorities should set clear timelines for procurement and testing of essential drugs and ensure adherence to that, failing which responsibility should be fixed and action taken against erring officials.

The administration is advised for storage of drugs under proper conditions as prescribed in the Drugs and Cosmetics Rules, 1945 to maintain their efficacy. PTI NAM BDC BDC