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LATEST NEWS UPDATES | Ex-Jharkhand health secy arrested in NRHM scam by Manoj Prasad

Ex-Jharkhand health secy arrested in NRHM scam by Manoj Prasad

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published Published on May 14, 2011   modified Modified on May 14, 2011
The Central Bureau of Investigation (CBI) on Friday arrested former Jharkhand health secretary Siaram Prasad Sinha in a multi-crore rupee scam in the department.

“We are going to prosecute him in the case”,CBI SP S K Choudhary told The Indian Express.

The CBI Friday also raided the residence of former health minister Bhanu Pratap Shahi at Bhavnatpur in Palamu in connection with the case. Shahi was not home.

Sinha and two other senior officials of the department — Sinha’s now suspended predecessor Pradeep Kumar and then Director, NRHM, Dr Vijay Shankar Naraian Singh—allegedly siphoned off crores of National Rural Health Mission (NRHM) funds meant for providing better medicare to rural people in Jharkhand between 2008 and 2009, according to an FIR registered in 2009.

The Union Health Ministry’s Purchase Preference Policy of 2008 had authorised states to purchase medicines and equipment for NRHM from PSUs. But the accused bought drugs and equipment worth more than Rs 130 crore from 19 private companies and allegedly earned kickbacks, the FIR says.

Seven of these — Satya Sai Agency, JR Pharma, Kalyan Enterprises, Medhavi Associate, Annu Enterprises, Savitri Sales, and Nand Kishore Fogla — were local companies with questionable backgrounds.

Fogla, from which drugs worth Rs 48.56 crore were bought, was regsitered with Commercial Taxes Department only after it fetched the bid from the health department in 2008.

Fogla was given the contract to supply Microgen, a virucidial disinfectant, at the rate of Rs 2948 a litre even though Microgen Hygiene Private Ltd, the firm which makes the drug, had in its bid quoted a price of Rs 2,500 a litre. After it won the bid, Fogla bought the drug from Microgen and sold it to the department.

Riya Enterprises was given a Rs 70 lakh contract to provide furniture. The firm is owned by Shayamal Chakravorty, a known friend of Kumar, and co-owned by his brother Rajendra.

Chakravorty’s brother Arup alias Tillu and local builder Dharmendra Kumar Dheeraj, who was also close to Kumar, were given job orders for construction works on the basis of nomination.

After the scam came to light in 2009, then Governor K Sankaranarayanan had ordered a probe, following which an FIR was registered against the three accused.

The state government has lareday given permission to prosecute Kumar, the CBI is awaiting the Centre’s nod.”We hope to get the nod soon,” said SP Choudhary.

The Indian Express, 14 May, 2011, http://www.indianexpress.com/news/exjharkhand-health-secy-arrested-in-nrhm-scam/790734/


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