Government hospitals directed to procure medicines and medical equipment directly as pending and incomplete CPA tenders are cancelled amid scrutiny over the centralised procurement system.
Delhi Govt Puts CPA Procurement on Hold
The Delhi government has suspended the procurement functions of the Central Procurement Agency (CPA) as an interim measure and directed government hospitals to procure medicines and medical equipment directly until a new procurement framework is put in place, according to an official order.
As per the order, all pending and incomplete tenders initiated by the CPA will stand cancelled and be returned to the respective hospitals for further action.
Centralised Procurement System Under Review
According to a PTI report, the order stated that the central procurement system introduced through government orders issued in June last year involved a policy decision that should have been placed before the Council of Ministers under the Transaction of Business Rules.
The CPA, established in 1994, is responsible for procuring medicines and surgical consumables for Delhi government institutions.
Hospitals to Handle Procurement Directly
Under the interim arrangement, government hospitals have been directed to procure medicines, surgical consumables, medical equipment and other healthcare commodities through their respective heads of department.
The procurement will have to be carried out in accordance with the General Financial Rules (GFR), Government e-Marketplace (GeM) guidelines and other applicable procurement norms.
Existing rate contracts and procurement agreements will continue until their expiry or termination.
Hospitals will also be required to procure essential medicines independently until the CPA finalises rate contracts for those medicines.
Decision Follows Anti-Corruption Branch Case
The development comes after Delhi Health Minister Pankaj Singh sought a report from the Health Department following an Anti-Corruption Branch case concerning the alleged supply of substandard medical and surgical consumables to government hospitals.
The minister sought details regarding action taken against the 13 supplier firms named in the case, including whether blacklisting or debarment proceedings had been initiated against them.
Government Seeks Details of Contracts and Payments
The Health Minister also sought information on whether any fresh contracts, purchase orders or payments had been made to the supplier firms after the case was registered.
He further asked whether departmental action had been initiated against public officials in connection with the matter, reports PTI.
The temporary suspension of CPA procurement functions is expected to remain in effect until the Delhi government establishes a new framework for the procurement of medicines, medical equipment and other healthcare commodities.
