Government Plans Panel to Recover Millions from COVID Procurement Scam, ET HealthWorld

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Government Plans Panel to Recover Millions from COVID Procurement Scam, ET HealthWorld


Government Plans Panel to Recover Millions from COVID Procurement Scam, ET HealthWorld

Bengaluru: The govt is considering establishing a committee to recover funds from companies implicated in the alleged Covid-19 procurement scam that occurred under the previous BJP govt. This follows the decision to set up a special investigative team (SIT) to probe the scam.

Authorities say the cabinet sub-committee, which is currently reviewing an interim report on the irregularities, supports the creation of a committee led by an officer of additional chief secretary rank to recover money lost. This proposal will be discussed at a cabinet meeting scheduled for Thursday.

An interim report by the judicial commission headed by Justice Michael D’Cunha, retired judge of the high court, has estimated misappropriation of more than Rs 7,200 crore and recommended recovering Rs 500 crore from the companies in the first phase, while also prosecuting former chief minister BS Yediyurappa and the then health minister B Sreeramulu for the irregularities.

After the interim report was submitted last month, chief minister Siddaramaiah formed a cabinet sub-committee led by deputy CM DK Shivakumar to examine the findings.

“We must initiate the recovery process while the ongoing investigation continues,” Shivakumar said. “During our first meeting, we discussed the interim report and recognised the necessity for a dedicated team to handle the recovery. The cabinet will deliberate on these issues, and further action will follow.”

Health minister Dinesh Gundu Rao, also a member of the sub-committee, said that interim report is still being studied, and more recommendations will follow.

The alleged scam has triggered political uproar, especially since it showed Yediyurappa and Sreeramulu in poor light. The commission is expected to submit its final report soon and speculation is also growing over who else it would name since BJP functionaries such as Lok Sabha member K Sudhakar, who succeeded Sreeramulu as health minister, and former chief minister Basavaraj Bommai also under scrutiny.

“We will take legal action against all those involved, regardless of their political status,” said Siddaramaiah.

Cabinet sub-committee member Priyank Kharge added that the interim report only reveals a fraction of the full extent of the scandal. He noted that govt agencies had illegally procured medicines, chemicals, and medical equipment from companies in China and Hong Kong, and further revelations are expected.

  • Published On Nov 13, 2024 at 12:39 PM IST

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