Karnataka Former CM Yediyurappa To Face 'Covid Funds Misuse' Investigation

The inquiry into the alleged COVID-19 procurement scam in Karnataka has led to significant recommendations. A report by retired High Court judge Michael D'Cunha suggests prosecuting former Chief Minister BS Yediyurappa and Health Minister B Sriramulu. The allegations focus on irregularities during the 2020 purchase of three lakh PPE kits from Chinese firms, raising questions about transparency and accountability.

Procurement Details and Allegations

The report highlights that the BJP-led government approved large-scale purchases of PPE kits, medicines, and medical equipment in early 2020. These were mainly sourced from Chinese suppliers DHB Global and Big Pharmaceuticals at prices much higher than local options. Local companies like Plasti Surge Industries Pvt Ltd offered kits at significantly lower rates, initially Rs 330.40 per kit, later increasing to Rs 725.

Concerns were raised about the Karnataka State Medical Supplies Corporation Limited (KSMSCL) bypassing competitive bidding processes. Instead, they opted for direct orders, reportedly with support from both the Chief Minister and Health Minister. Domestic kits ranged between Rs 400 and Rs 1,444.80, yet foreign suppliers were chosen at much higher costs.

Financial Implications

The report suggests possible manipulation of records to justify these procurement decisions. It indicates favouritism towards DHB Global over Big Pharmaceuticals, which had offered a lower price. These alleged irregularities resulted in a financial loss of approximately Rs 67,69,000.

Overall, the report points to procurement irregularities amounting to around Rs 150 crore. It implicates high-ranking officials and questions the transparency of the process.

Responses from Key Figures

Former Chief Minister Yediyurappa responded to the prosecution recommendation by stating there is no need for concern regarding COVID-related prosecutions. He asserted that all legal protocols were followed during the pandemic and dismissed the actions as politically motivated.

Karnataka Health Minister Dinesh Gundu Rao commented on Justice Cunha's findings implicating Yediyurappa and Sriramulu in fund misuse during COVID-19. He emphasised that previous opposition allegations are now supported by Cunha's report.

Rao outlined plans for legal action addressing procurement irregularities highlighted in the report, including mask and ventilator purchases. He stressed that these findings are credible due to their source from a "senior judge of high integrity."

Next Steps and Broader Investigations

Rao clarified that the inquiry is not politically driven or aimed at retribution. He stated investigations would extend beyond the health department to other sectors like Urban Development and BBMP. These additional probes aim to uncover whether similar irregularities occurred elsewhere during the same period.

The government plans to present Justice Cunha's report in the legislative assembly soon, making it publicly available. This move underscores a commitment to transparency and accountability in addressing these serious allegations.

The unfolding situation highlights significant concerns about procurement practices during a critical time in Karnataka's history. As investigations continue, all eyes remain on how these issues will be resolved within legal frameworks.