Former Karnataka CM Yediyurappa, ex-minister, to be prosecuted over irregularities in Covid spending

The recommendation is based on allegations of irregularities in the 2020 purchase of three lakh PPE kits from Chinese suppliers during the pandemic, reported India Today.

Justice D'Cunha submitted the report to the Karnataka government on August 31.

The report states that the BJP administration, under Yediyurappa, approved large-scale purchases of PPE kits, medicines, and medical equipment in March and April 2020, primarily from Chinese companies DHB Global and Big Pharmaceuticals at prices far higher than those of local suppliers.

Although officials cited local suppliers’ inability to meet demand, records indicate that Plasti Surge Industries Pvt Ltd offered kits at a much lower initial price of Rs 330.40, later increased to Rs 725, compared to DHB Global’s Rs 2,117.53 per kit.

The report also alleges that Karnataka State Medical Supplies Corporation Limited (KSMSCL) bypassed competitive bidding, opting instead for direct orders with backing from both the Chief Minister and Health Minister.

Despite domestic kits being priced between Rs. 400 and Rs. 1,444.80, officials selected foreign suppliers at significantly higher rates, the report highlighted.

It further highlights concerns of possible record manipulation to justify these procurement choices, suggesting potential favouritism toward DHB Global over Big Pharmaceuticals, which offered a lower price, resulting in a reported financial loss of Rs 67,69,000.

In total, the report identifies procurement irregularities amounting to about Rs 150 crore, implicating senior officials and casting doubt on the transparency of the process.

Commenting on potential prosecution over the alleged scam, former Karnataka CM Yediyurappa said there was no need to woory as all legal protcols were followed in the procurement.

“No need to worry about COVID-related prosecutions. We followed all the legal protocols during the pandemic. Their actions are politically motivated and pointless. I am confident that I have done nothing wrong. Any investigation will reveal the truth. Congress is simply trying to dig up the past," he was quoted as saying by India Today.

Karnataka Health Minister Dinesh Gundu Rao stated that Justice Cunha's report implicates former Chief Minister BS Yediyurappa and former Health Minister B Sriramulu in alleged fund misuse during the COVID-19 crisis.

Rao pointed out that opposition allegations from that period are now corroborated by Cunha's findings.

"They amassed huge wealth during Covid when people were dying. They saw an opportunity to make a quick buck," he stated, according to the India Today report.

Rao called for immediate legal action addressing the procurement issues highlighted in the report, including mask and ventilator purchases. "Some action can be immediately taken, and prosecution can start," he said.

He stressed the credibility of the findings due to the report coming from a "senior judge of high integrity," emphasizing the need for accountability.

The report is expected to be made public soon, with the government planning to present it in the legislative assembly.

The minister also clarified that the inquiry is not politically motivated or intended as retribution.

"We are not going on some political witch hunt," Rao stated, adding that investigations would extend beyond the health department to other sectors, such as Urban Development and BBMP, to determine if similar irregularities occurred elsewhere during the same period.