The latest Comptroller and Auditor General (CAG) report, tabled in the Kerala Assembly on Tuesday, has revealed significant irregularities in the procurement of PPE kits during the COVID-19 pandemic. The report highlights a financial irregularity of Rs 10.23 crore in the purchase of 15,000 PPE kits in 2020.

The audit, titled “Performance Audit on Public Health Infrastructure and Management of Health Services,” found that on March 28, 2020, PPE kits were procured for Rs 550 each.

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However, just two days later, kits were purchased at Rs 1,550 apiece from a new supplier, resulting in inflated costs.

The report accuses the Kerala Medical Services Corporation Ltd (KMSCL) of bypassing vendors offering lower rates in favor of suppliers charging significantly higher prices.

Despite the pandemic’s urgency, KMSCL reduced orders from a vendor providing kits at the government-approved rate of Rs 545 per unit, increasing orders from suppliers charging between Rs 800 and Rs 1,550 per unit. This decision led to excessive expenditure.

Additionally, the audit pointed out that KMSCL made full advance payments to a new supplier, San Pharma, without verifying the quality of the products. This payment exceeded authorized limits set by the State Level Crisis Management Group (SLCMG).

The opposition has strongly criticized the findings. Senior Congress leader Ramesh Chennithala alleged widespread corruption during the COVID-19 period, including the distribution of expired medicines and overpriced PPE procurement.

He called for a case against the first Pinarayi Vijayan government, holding former Health Minister KK Shailaja directly responsible.

Opposition leader VD Satheesan stated that the corruption occurred with the knowledge of both the Chief Minister and the then Health Minister.

“The government turned a disaster into an opportunity for corruption, while presenting a false PR-driven image. The CAG report has exposed the truth,” he said.

Responding to the allegations, former Health Minister KK Shailaja maintained that the scarcity of PPE kits during the pandemic led to higher prices.

She stated that the matter had been previously addressed before the Lokayukta.

The CAG report adds a new dimension to the ongoing debate about financial mismanagement during the pandemic, with political ramifications likely to unfold in the days ahead.