Fund-rich PHSC became 'trap' for Punjab ex-Health Minister Dr Vijay Singla

Tribune News Service

Vishav Bharti

Chandigarh, May 25

Known for having a huge budget and procuring medicines and high-end equipment at “inflated” prices, the Punjab Health Systems Corporation (PHSC) often remained the area of interest of corrupt government functionaries in the past. The same lure proved fatal for now-sacked Health Minister Dr Vijay Singla.

The PHSC, which came into existence in 1993 with a one-time grant of Rs 420 crore from the World Bank, was responsible for ushering in privatisation of the healthcare system in Punjab. It was a system devised by the bureaucrats to bring procurement directly under their control, which was earlier under the Health Department. PHSC is headed by a Managing Director, who is often a senior IAS officer.

At present, the PHSC spends around Rs 250 crore on infrastructure, equipment and drugs every year. Of these, around 140 crore is spend on consumables and drugs; 60 crore on developing health infrastructure, including civil work. Besides, the corporation spends around Rs 40 crore on equipment. As per the norms, the corporation seeks requisition of medicines and equipment from the Health Department and the National Health Mission.

Since the corporation procures the items from the market, it is a common phenomenon at the PHSC often to shelve the General Financial Rules and favour the “chosen” suppliers by making tailor-made conditions in the procurement tenders.

In March, when the model code of conduct was in effect, the PHSC spent a huge amount on procurement and payment to contractors. Over the past two months, some of procurement scams have been reported in The Tribune. Dr Singla walked into a trap while trying to “recover” money from contractors and officials who were responsible for procurement and civil works during the period when the model code was in force.

‘Sought commission for procurement’

• A superintending engineer at the Punjab Health System Corporation has alleged Dr Vijay Singla and his aides were demanding commission in government projects
• Dr Singla walked into a trap while trying to “recover” money from contractors and officials responsible for procurement and works when the model code was in force

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