Orders to blacklist and stop payments to some pharmaceutical suppliers earlier this year were issued "without following due process" and without the "sanction from competent authority", a report by the Directorate General of the Health Services (DGHS) has determined.
According to officials, the controversial orders - originally issued following allegations of spurious drugs against these companies - were partly responsible for a shortage of medicines in Delhi government-run health care facilities this year.
The DGHS report, dated October 21 and seen by HT, stated that these orders issued by a senior bureaucrat have now been "cancelled and reversed", and that the directorate has instituted an official inquiry in the matter. The official concerned, Dr HC Birua, who held charge as additional director (coordination) in DHGS, has been discharged from his responsibilities.
DGHS comes under the Delhi government's health department and the latest report brings into spotlight again the feud between the Aam Aadmi Party administration and lieutenant governor (LG) VK Saxena, whose order for a probe into allegedly substandard drugs on December 23 precipitated the chain of events that led to the suppliers being blacklisted.
On January 31, Birua wrote to all government hospitals and medical superintendents, directing them to stop payments to 10 medicine distributors and black-listing their firms, citing allegations of cartelisation, substandard medicines, pooling of tenders, and other fraudulent activities.
"Stop-payment is hereby ordered against above ten firms till the loss to the exchequer is calculated and recovery is done," according to the January 31 order.
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