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FA&CAO sidelined; no requisition from user deptt; no administrative approval; no inspection of experts; no technical sanction; no AERB clearance
Taking CM for granted, SKIMS fudges purchase of Rs 18 Cr Linear Accelerator
5/16/2012 11:28:18 AM
Early Times Report
SRINAGAR, May 15: Taking Government of Jammu and Kashmir as well as Chief Minister and Chairman of Governing Body, Omar Abdullah, for granted, Director of Sher-e-Kashmir Institute of Medical Sciences (SKIMS), Soura, has purchased Linear Accelerator for Rs 18 Cr from a foreign company in gross violation of norms and codal formalities. The radio therapy plant has been procured without the proper requisition from the user department, without proper constitution and opinion of technical committees, without necessary approval of AERB, without administrative approval and technical sanction, while sidelining the hospital's Financial Advisor and Chief Accounts Officer.
During Governor's rule on 10-11-2008, Planning Department of the Government of Jammu & Kashmir had communicated to SKIMS that a plan budget allocation of Rs 10 Cr had been released for procurement of a state-of-art radio therapy plant called, Linear Accelerator, for treatment of the alarmingly increasing number of cancer patients in the state. Accordingly, a committee comprising experts from AIIMS, New Delhi, and PGIMER Chandigarh was constituted for the purpose of procurement. Global tenders were floated for Technical and Financial bids vide NIT No:01 of 2009.
For the next over one year, SKIMS failed to make the acquisition due to intensive lobbying, internal politics, favouritism in constitution of committees and lack of competence and coordination of the departments involved.
M/S Siemens Ltd New Delhi and M/S Varian Medical Systems, New Delhi, participated in the competition.
Subsequently, a fresh process of acquisition started last year, weeks after the HOD Gastroenterology, Dr Shaukat Ali Zargar, replaced endocrinologist, Dr Abdul Hamid Zargar, as Director of SKIMS. M/S Siemens Ltd New Delhi and M/S Varian Medical Systems, New Delhi, and M/S Elekta Ltd Haryana participated in the competition.
On 13-09-2011, Srinagar-based representative of Siemens, Muzaffar Iqbal, learned through his contacts that tenders were being opened on the same day in a "hush hush manner'. He submitted a written representation to Director SKIMS that since his company had not been informed and was not in a position to be present on the occasion, a fresh date be fixed for opening of tenders. He complained that despite the presence of his company's men at SKIMS daily, authorities had not informed his company about the opening of bids.
"We had submitted about five representations about the unfair means of the other vendor, but nobody has responded back to us on account of those representations", Muzaffar complained. "We being the major competitors in this tender, the price bid opening without our presence will be totally unfair and unjustified", he added. While complaining that his company's quotation had been terminated fraudulently in the previous year too, he pleaded that the bids be opened at a fresh date.
However, nobody at SKIMS bothered to respond to Muzaffar's representation or postpone the date of opening of financial bids. Tenders were opened as per the not publicized schedule and comparative statement was made.
Among the remaining two companies, Varian quoted an aggregate of Rs 18,54,93,481 [ Rs 13.80 Cr as cost of equipment and turnkey and Rs 4.74 Cr as Civil and Mechanical Component). Elekta quoted Rs 21,23,29,483 [ Rs 16.01 Cr for cost of equipment and turnkey and Rs 5.21 Cr as CMC).
During the process, FA&CAO was sidelined completely when he pointed out in a detailed note that there had been neither an administrative approval (which is a must from Chief Minister and Chairman of Governing Body for any purchase beyond Rs 5 Crores) nor any technical sanction. He pointed out that neither a committee of experts had been constituted nor the mandatory clearance from AERB had been obtained. He also pointed out that the process of procurement had been set into motion without necessary requisition from the user department.
Insiders insist that favoutites of Director SKIMS, Dr Shaukar Zargar, and Chief Material Management Officer (CMMO), Dr Mushtaq, played key role in carrying the process forward as per the directions coming to them from certain influential quarters at SKIMS. Significantly, Dr Mushtaq, who lately retired as Principal of SKIMS Medical College Bemina, had remained associated with the all-important Material Management Department and other high level committees for over 20 years.
Reports under investigation say that the foreign company that was allotted the contract without consultation and inspection of the site and its specifications [and necessary parameters set by AERB] by Chief of Hospital Engineering, even deposited a huge sum of Rs 5 Cr as kickbacks in the Indian account of another company, that has been supplying anti-cancer drugs to SKIMS since long. The huge amount was, according to an unconfirmed report, drawn by a senior official of SKIMS Bemina, who worked at Oncology Department of SKIMS Soura for years. A central agency deputed sleuths to Srinagar to know whether it was a case of money laundering or funding for subversive activity. However, they concluded that it was simply a case of kickbacks.

A note from Financial Advisor, available with Early Times, makes it clear that there were extensive irregularities in the purchase. Some of the SKIMS officials insist that the authorities had actually procured an "outdated machine" that would not cost even Rs 10 Cr in international market. They claimed that the machine supplied was different from the one advertised in the global tender.

FA's note of caution reads: "Perusal of the tender documents reveals that the civil structures to be erected, to house the proposed Linear Accelerator, have to conform to certain norms laid down by A.E.R.B. The allied space for the working staff and other related infrastructural facilities also have to conform to prescribed engineering norms. The details of the total space required as per the requirement of user department for the project are not recorded/available".
It adds: "As per the codal provisions detailed drawings, architectural designs, structural details etc of the proposed civil structures are required to be drawn by the technical wing of the department (i.e CHE) in conformity with the designs/ norms prescribed by AERB, in the case of bunker of the Linear Accelerator and the engineering codes for the working spaces and other allied infrastructural facilities. The architectural structural, designs/ drawings have to be got approved from the respective competent agencies (AERB in the case) and these have to be technically sanctioned by the competent authority".
"None of the said details or documents is traceable in the file. The file is accordingly returned for providing the complete documents related to the case alongwith a comprehensive note of evaluation to facilitate pre-check", wrote the FA. However, in the process further, he was completely marginalized and the purchase was made without his approval. Sources said that entire amount of Rs 18 Cr has been released to the company.
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