AP Govt slams AIMED on caution notice over payment of dues

This came in wake of the "Caution Red Notice - APMSIDC" issued by the Association of Indian Medical Device Industry, which warned all members not to bid or supply to APMSIDC (Andhra Pradesh Medical Services & Infrastructure Development Corporation) without 100 percent advance payment terms in the future, as many of their member companies had supplied to APMSIDC and their payments have been on hold for the past 4-5 years.

Medical Dialogues team had earlier reported that the Caution Red Notice came two months after AIMED forum coordinator Rajiv Nath wrote a letter to AP Medical Services and Infrastructure Development Corporation Managing Director Dr Muralidhar Reddy saying the governing body of their association resolved to put out a caution on its website over failure to clear the outstanding amounts.

However, in response to this Caution Red Notice, the AP administration revealed through its fact-checking unit that the government had purchased approximately 2000 crores of equipment in the last two years and had paid on time. Only Rs.328 Crores payment is due from last two months.

Criticizing the AIMED's Caution Red Notice, the AP Govt through its Official Account of Fact Check Wing of the Government of Andhra Pradesh tweeted, "An informal forum @MiIAiMeD representing medical device manufacturers has released a red notice against APMSIDC, which is far from true. An investigation is underway & action will be taken against any malicious intent found. "

Further, the Fact Check unit of the AP government tweeted, "It's noteworthy that in the last two years, The Government has procured around 2000 crores of equipment and has paid in time. Only Rs.328 Crores payment is due from last two months."

Furthermore, in a letter to the AIMED coordinator, APMSIDC Managing Director D. Muralidhar Reddy stated, "The issues raised by AiMeD with respect to non-clearance of outstanding dues for their members during the last 4-5 years is not at all tenable as majority of dues were paid and payment which has not been paid to the suppliers was only due to non fulfillment of tender clauses."

"Some of the suppliers did not submit the required documents such as agreement conclusion, mandatory installation certificates, performance certificates from end user etc. for bills processing and claimed that the amount is still pending for clearance" the letter further added.

Further questioning AIMED's move, in the letter, he said, "This kind of news create false impression to the suppliers and hurt the state's image which is not all acceptable. Therefore, APMSIDC strongly denies this kind of misinterpreted and false news as it is not in right spirit with respect to the honest efforts being putup by the state government in providing the best and quality services to the citizens."

Accordingly, APMSIDC's Managing Director, Sri Muralidhar Reddy, directed AIMED to verify the facts before taking such action and remove the notification from the website and issue clarification immediately so as to ensure a healthy supplier relationship, failing which appropriate legal action will be initiated against the association and firms for misrepresentation of facts.

While clarifying the facts, the Government of Andhra Pradesh's Fact Check Wing noted, "The Government of Andhra Pradesh believes in transparent business and has always worked towards achieving EODB practices. In the trying times of a pandemic, the Government worked tirelessly to provide all the necessary equipment and medicines. The health infrastructure (Physical and Digital) both have been upgraded since 2019. The Red notice published by the informal group of Association of Indian Medical Device Industry (AIMED) has certainly malicious intent behind it."

"The Notice is under investigation and the Government will take action against the involved persons/ associations/ groups in case of any malicious intent is found behind this propaganda." the Fact Check Wing of the Government of Andhra Pradesh added.

To view official letter, click on the link below:

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