Procurement of drugs, especially IV fluids, by the government had not been based on estimates of actual need and drugs had been procured far in excess of requirement, creating storage problems in the warehouses and health institutions.

What’s worse, drugs procured in excess had been stored in garages, toilets and corridors of health institutions, said a report of the CAG, tabled in the Legislative Assembly on Thursday.

It said the Karnataka State Drugs Logistics and Warehousing Society’s tender evaluation was flawed in many cases as many non-responsive tenders had been considered responsive and drugs had been procured from non-responsive sources.

A total of 7,223 drugs costing Rs. 15.82 crore had been procured with shelf life less than 80 per cent and 1,024 of these had shelf life of the less than 50 per cent. Another 87 drugs costing Rs. 35.30 lakh had shelf life of less than 90 days. Drug procurement lacked planning, resulting chronic delay in finalising the rate of contracts for supply of drugs. The quality assurance system was not effective as no quality testing of drugs had been done for 14 months from September 2009 to November 2010. No testing laboratory had been appointed since December 2010 for 48 drugs procured, the report said.