Before the Telugu states forgot the sensational ESI scam burst in Telangana which set ripples in the political and medical fraternities, the Vigilance and Enforcement department of Andhra Pradesh have unearthed another such scam in AP. According to the officials, three directors of the Insurance Medical Service (IMS) implementing the Employees’ State Insurance (ESI) scheme resorted to fraud in the purchase of drugs, medical equipment and surgical tools.
Perpetually, a loss of Rs 404.86 crore was observed to the exchequer which has been going on from the last five years. It was also observed that the enforcement officials have found Rs. 51 crores was sanctioned to the companies, which are not in existence with the help of fake quotations and orders. Accusing the three directors of criminal misconduct under the Prevention of Corruption Act and cheating, criminal breach of trust and forgery, the enforcement department has prepared a note recommending action against them. The directors are also accused of buying surgical items worth Rs 47.77 cr from non-rate contract firms without inviting tenders.