ACB arrests former CPA head in alleged DGHS procurement scam

New Delhi: A former head of the Central Procurement Agency (CPA) under the Directorate General of Health Services (DGHS) has been arrested in connection with the alleged corruption case involving the procurement of medicines and other items, an official said on Friday. 

The arrest follows an investigation into the alleged large-scale irregularities in procurement carried out by the Central Procurement Agency (CPA) of medicines, surgical items, consumables and medical equipment, according to an Anti-Corruption Branch (ACB) statement.

“A complaint from the Directorate of Vigilance alleged that certain public servants and private persons entered into a criminal conspiracy and manipulated procurement procedures, tender conditions and technical specifications in order to provide undue advantage to selected firms and suppliers, causing wrongful loss to government exchequer and corresponding wrongful gain to private persons,” the statement read, news agency PTI reported.

According to investigators, the alleged irregularities involved the procurement of portable X-ray machines, bed sheets and linen items, C-Arm radiological equipment, anaesthesia work stations, oral rehydration solution (ORS), surgical consumables and medicines at highly inflated rates. 

It was further alleged that tailor-made specifications were framed to benefit selected suppliers, genuine competitors were excluded from the bidding process, and government funds running into several hundred crores of rupees were misutilised. 

“Based on the complaint, the ACB registered an FIR on June 2 under provisions of the Prevention of Corruption Act, and sections related to criminal conspiracy under the BNS. Officials examined procurement records, official documents and other evidence during the investigation,” it further read.

The probe revealed that several crucial procurement files related to the purchases under scrutiny were allegedly not made available by him, who reportedly kept them in his personal custody.

The ACB said the accused was questioned during the investigation but failed to provide satisfactory explanations regarding the missing records and other material aspects of the case.

“His custodial interrogation was found necessary to recover the missing files, unearth the larger conspiracy, identify other beneficiaries and co-conspirators, to establish the money trail and recover incriminating documentary and electronic evidence,” the statement read, reports PTI.

The ACB arrested the accused on Thursday and produced him before a court on Friday. The court granted four days of police custody.   

“The role of other public servants, private persons, suppliers and beneficiaries involved in the alleged conspiracy is also being examined.

Further investigation is in progress,” officials said.