Officials from Anti Corruption Bureau (ACB) arrested former Minister and TDP MLA K. Atchannaidu on Friday morning from his native home in Nimmada village in Srikakulam district for his alleged involvement in irregularities in purchase of equipment, medicines and other things in Directorate of Insurance and Medical Services, during 2014 to 2019.
The ACB officials also arrested former Directors of Directorate of Insurance & Medical Services, C.K. Ramesh Kumar and Dr. Vijay Kumar at Tirupathi and Rahajmundry respectively.
As per the ACB officials, investigation has revealed that DIMS had purchased medicines, equipment and other things to the tune of ₹ 988.77 crores during the period and there is a scam of over ₹ 150 crores.
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Mr. Atchannaidu, who was Minister in the Chandrababu Naidu Cabinet during 2014-19, reportedly violated procurement norms. Mr. Atchannaidu has represented Tekkali constituency thrice.
Irregularities found
Addressing a press conference in Visakhapatnam, Regional Joint Director, ACB, Visakhapatnam P.V. Ravi Kumar said that based on the report filed by Vigilance & Enforcement, the State Government has asked the ACB officials to further investigate into the scam which occurred during the five year TDP rule, when Mr. Atchannaidu was the minister from 2014 to 19.
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He said that the ACB in its investigation found that there were irregularities in procurement of medicines, lab kits, surgical items, furniture during the tenure.
He also said that there were irregularities in call centre, toll-free and ECG services. The irregularities in the sewerage and biomedical waste is being investigated, he said.
“As per the ACB investigation, medicines were procured for more than 50 to 129 % higher than the market prices. When all the purchases should have taken place through the e-tender system as per the norms, they have procured on nomination basis from a few companies,” he said.
The ACB officials also said that some DIMS staff have created fake invoices, quotations and also fabricated fake company letter heads and envelopes and had played a key role in the scam. A few more persons who were allegedly involved in the scam are yet to be nabbed.
As per the ACB officials, some of the DIMS staff members created benami medical companies in the name of their family members and fabricated bills to play a major role in the scam.
Based on the order given by Mr. Atchannaidu, the then labour minister, DIMS had given the contract to Tele Health Services Private Limited for running the call centre, toll free and ECG services. While ₹ 1.80 has to be charged from the insured person for tele services, they have charged ₹ 4.80, he said.
As per ACB officials, the then Director of DIMS Ramesh Kumar had asked them to charge ₹ 480 for each ECG, when the market rate for ECG was ₹ 200 at other centres.
The three would be produced in the ACB Special Court at Vijayawada on Friday, he added.
TDP leaders, who were shocked by the sudden development, alleged that the government was trying to harass Mr. Atchannaidu as he had ‘exposed’ the misdeeds of the YS Jaganmohan Reddy government.
Srikakulam MP Kinjarapu Rammohan Naidu, TDP district president Gowthu Sirisha and other leaders enquired about the incident and asked leaders and cadre to maintain restraint till charges were framed and proved.