The Comptroller and Auditor General (CAG) has exposed significant irregularities in Kerala’s procurement of PPE kits during the COVID-19 pandemic. The report, presented to the Kerala Legislative Assembly, revealed that the state government purchased protective gear at ₹1,550 per kit, despite similar kits being available at ₹550. This decision reportedly caused a financial loss of ₹10 crore.
The findings pointed to the government bypassing lower bids from three companies and awarding the contract to San Pharma, which received a 100% advance payment.
Kerala, which reported India’s first COVID-19-positive case in March 2020, initially gained national and international recognition for its efficient handling of the pandemic. The “Kerala model” was widely lauded for its focus on healthcare infrastructure and transparent governance. However, the recent CAG report has cast a shadow on the state’s pandemic response, raising concerns about transparency and accountability in its procurement practices.
Leader of the Opposition V.D. Satheesan criticized Chief Minister Pinarayi Vijayan and former Health Minister K.K. Shailaja, holding them responsible for the scandal. Satheesan alleged that Shailaja approved the order under Vijayan’s instructions and highlighted the decision to sideline lower bids in favor of San Pharma. He also pointed out that the opposition had flagged this issue as early as 2021-22, a claim now validated by the CAG. He called it “nothing short of a massive fraud,” adding that the irregularities represented a severe misuse of public funds.
In response, CPI-M leader K. Anilkumar dismissed the allegations, calling them politically motivated. He accused the central government of using agencies like the CAG to target the Kerala government and questioned the timing of the report.
Health expert S.S. Lal, who has worked with the WHO, criticized the procurement practices, describing them as “daylight robbery.” Lal stated that the health department’s procurement system has often been exploited for financial gain. Although he acknowledged his own political affiliations, he emphasized that his criticism stemmed from his professional expertise.
Ironically, the World Health Organization (WHO) “praised” Kerala in 2020 for its effective response to the COVID-19 pandemic, attributing its success to systematic investments in healthcare infrastructure, early preparation, and disaster management experience. WHO officials highlighted Kerala’s comprehensive strategy of trace, test, and contain, coupled with extensive screening and quarantine measures. They also commended the state’s emphasis on community engagement, risk communication, and inter-sectoral coordination led by the Chief Minister and Health Minister.
A WHO Representative to India described Kerala’s approach as “exemplary”, citing its focus on surveillance, early detection, and broad social support as a model for other states.
(With inputs from NewKerala)
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