New Delhi: The All India Institute of Medical Sciences (AIIMS) in Delhi is currently facing a barrage of allegations, including regarding irregularities in procurement and the promotion of an official accused of sexual harassment. The circumstances worsened to an extent that the Union health ministry was compelled to write to the Director of AIIMS requesting an investigation report.
However, the medical institution, one of the finest in the country, remains unresponsive.
It is alleged that the administration at AIIMS overlooked more economical options for gloves, permitting the acquisition of these supplies at significantly inflated prices, which has resulted in considerable financial losses to the government treasury.
The health ministry has written letters to AIIMS twice in the last 15 months regarding the purchase of gloves, but the director has not responded even once.
The procurement of gloves
The matter dates back to May 2023, when AIIMS issued a call for tenders for the procurement of 5.8 million high-quality, powder-free surgical gloves that are certified according to Indian Standard (IS 4148).
A total of 33 companies submitted tenders but none except two were deemed technically suitable to advance beyond the initial stage of the technical bid.
The two companies that were found eligible for the financial bid were AS Healthcare and Braun Biotech Limited. While AS Healthcare bid Rs 12 crore 47 lakh at the rate of Rs 21.50 per pair of gloves, Braun Biotech Limited bid Rs 16 crore 24 lakh.
As a result, AS Healthcare got the contract on October 16, 2023.
Where did the ‘corruption’ take place?
Documents accessed by The Wire Hindi reveal that in February 2023, the Cardiothoracic and Neuroscience Centre (CNC), a division of AIIMS under the leadership of Dr. Amit Lathwal, procured powder-free gloves from an alternative supplier at a cost of Rs 13.56 per pair.
In May 2023, when tenders with higher rates were invited, a lengthy discussion ensued among the officials at AIIMS concerning the significant price differences, which continued until October 2023. This led to inquiries among the officials regarding the rationale behind AIIMS procuring gloves at a considerably higher price, especially in light of the fact that CNC had procured the same items at a substantially lower cost just two months prior.
The Wire Hindi has file notings from discussions regarding this matter, which reveal that senior doctors and administrative officials at AIIMS were fully cognizant of the inflated rates. Some officials defended this pricing, while others opposed it.
According to the documents, storekeeper Ravindra justified the elevated price by stating, “The gloves acquired by CNC were deemed technically invalid by the main hospital’s store committee (Technical Specification & Evaluation Committee). Consequently, it is not equitable to compare them with a product that has been classified as technically invalid.”
These gloves were declared invalid in August 2023.
CNC made this purchase from a company named ASMA. Interestingly, however, AIIMS procured the same type of gloves (powder-free) from the same company, which were deemed technically inferior in August 2023, as stated by Ravindra. This acquisition occurred nine months later and was made at a price that was Rs 6.19 lower than the gloves obtained from AS Healthcare.
In May 2024, AIIMS signed a contract with ASMA for the procurement of 60 lakh gloves over a one-year period, at a total cost of 9 crore 18 lakh 60 thousand, which equates to Rs 15.31 per pair.
In his note, Ravindra cited examples of many companies which were supplying gloves to various hospitals at a higher rate than the price quoted by AS Healthcare. However, he overlooked the fact that during the same timeframe, many other hospitals were procuring these gloves at lower rates.
The powder-free gloves by a brand called Truskin, acquired by AIIMS from AS Healthcare at a price of Rs 21.50 per pair, were procured by several other hospitals across the country at rates ranging from Rs 14.00 to Rs 18.55 per pair during the same period.
When we asked the AIIMS director why the procurement was made at such an exorbitant price, causing a loss to the exchequer, when better options were available, he refused to answer.
According to the file notings, the purchase in-charge and additional medical superintendent, Dr. Lathwal, was one of the officials who expressed concerns regarding the elevated pricing. He also proposed that the tender be cancelled. He said, “The price in this tender significantly exceeds the amount quoted by CNC. … Consequently, it is recommended that this tender be cancelled and a new one be issued without delay.”
Lathwal had also objected to the rejection of gloves purchased by CNC, “Two companies were disqualified due to inadequate performance in CNC; however, no formal feedback was sought from CNC on this matter.”
But the then Deputy Director (Admin) Manisha Saxena ignored Lathwal’s proposal and said, “Considering the urgent requirement, a supply for three months can be arranged. For any additional procurement, a new tender can be requested without delay.”
Manisha Saxena’s proposal received approval from AIIMS Director M. Srinivas, and two days later, a contract was signed with AS Healthcare.
Finally, AIIMS procured a total of 1.5 million gloves for a sum of Rs 3 crore 22 lakh and 50 thousand, with each pair priced at Rs 21.50.
Had AIIMS procured these gloves at the February 2023 rate of Rs 13.55 per pair through its own CNC department, the total expenditure would have amounted to only Rs 2 crore 3 lakh and 25 thousand. Consequently, AIIMS incurred a loss of Rs 1 crore 19 lakh 25 thousand.
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Furthermore, if AIIMS had opted to purchase these gloves at the May 2024 rate of Rs 15.31 per pair, the total cost would have been Rs 2 crore 29 lakh and 65 thousand, resulting in savings of Rs 92 lakh 85 thousand compared to the amount actually paid.
Complaint reaches health ministry
The issue at hand extends beyond mere financial loss. It also encompasses the silence exhibited by the AIIMS administration over the matter. In December 2023, a complaint was submitted to the ministry regarding this matter, accompanied by all relevant documents. Subsequently, on December 28, 2023, the ministry wrote the first letter to the Director of AIIMS, requesting an investigation into the matter and urging the prompt submission of a report to the ministry.
The ministry, having received no response for over a year, sent a follow-up letter to AIIMS on December 12, 2024. In this correspondence, the ministry reiterated its previous request made a year prior, urging the institute to conduct an investigation into the matter and submit a report.
The ministry wrote, “It is requested to examine the matter and provide a report to the ministry, urgently.” But AIIMS has yet to provide a response.
The ministry sent the letter again in December 2024, but the AIIMS director failed to reply yet again.
When asked why the hospital did not respond to the letters from the ministry, AIIMS media representative Dr. Reema Dada told The Wire Hindi that the institution is conducting its own investigation into the matter.
The Wire Hindi has also reached out to the director of AIIMS with a list of questions on this matter. However, we have yet to receive a response.
When we contacted Neelam, the under secretary in the ministry who had written the ministry’s most recent correspondence to AIIMS concerning the delay, she declined to provide any comments.
(Next installment: The laundry bill controversy which not only resulted in a financial loss for AIIMS but also damaged its reputation.)
This article has been translated from the original by Naushin Rehman.
