Enough evidence against ex-ministers in ESI scam: SP

Tirupati: Vigilance and enforcement SP Venkat Reddy on Saturday said there was enough evidence against at least two former ministers in the erstwhile TDP government in the employees’ state insurance corporation (

ESI

)

scam

, which has raised political heat in the state.

Speaking to reporters, he said the enquiry by the vigilance and enforcement wing has brought to light several large-scale irregularities in the purchase of medicines, biometric machines, tele health services etc by the ESIC. “The scam would be over Rs 400 crore. Most of the purchases were done from 2014 to 2019, when the TDP government was in power in the state. While the total budget allocated for the purchase of drugs and medicines was Rs 293.5 crore, the purchases made were to the tune of Rs 698 crore, an excess of Rs 405 crore, which was a violation of procedural guidelines,” Reddy said.

Of the Rs 405 crore, Rs 51 crore was found to have been paid in excess towards drugs purchased from non-rated contract firms, the SP said, adding that it was another clear violation of the set guidelines. “An excess of Rs 85 crore was paid to various private firms for purchase of laboratory kits and Rs 10.5 crore towards purchase of surgical kits. Furniture worth Rs 6.6 crore was purchased without any tenders and it has been established that nearly 70 per cent in excess was paid towards furniture purchase as well,” Reddy added.

The vigilance and enforcement department, which conducted a three-month long probe into the scam, has recommended criminal proceedings against three directors, former ministers K Atchannaidu and Pithani Satyanarayana and their kin who are allegedly involved in the scam.

Meanwhile, Atchnnaidu condemned the allegations against him, saying the YSRC government is trying to implicate him with false charges. “I dare them to take action against me if my role in the scandal is proved,” Atchnnaidu told reporters.

He said he had merely asked officials to follow the Telangana model in awarding the contracts to avoid duplication and delay. “It doesn’t mean asking the officials to violate the rules. My family has never compromised on values, ethics and principles,” he said, while adding that he has never been involved in corrupt practices during his two-decade long public life.

Former minister and TDP leader Kollu Ravindra said the government is targeting Atchnnaidu as he belongs to the backward community. “The false campaign against Atchnnaidu is an attack on all BC communities,” he alleged.