Graft case filed against Dr Sangita Misra, 13 others

KATHMANDU: The Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption charge sheet against former Director General of the Department of Health Services, Dr Sangeeta Kaushal Mishra, and 13 others at the Special Court for alleged irregularities in the procurement of mammography machines.

Issuing a statement on Sunday, the constitutional anti-graft body said the defendants are accused of colluding with contractors during the cost estimation phase and releasing payment even though the supplier did not deliver all required materials as per the agreement.

Interim Prime Minister Sushila Karki had picked Dr Mishra for the position of health minister. However, her name was dropped later on due to the ongoing investigation against her.

The charge sheet alleges that the officials and contractors conspired to prepare a falsified Post Shipment Inspection (PDI) report, fake delivery documents and fabricated invoices to misappropriate government funds.

The CIAA said the process violated the Public Procurement Act, 2007 and Public Procurement Regulations, 2007, among other prevailing laws.

The Department of Health Services had prepared a technical specification covering 12 components, including the mammography machine, accessories and training. However, the specifications were finalized without approval from the authorized official, according to the CIAA.

According to CIAA, the supplier was paid Rs 127.5 million for the mammography devices even though the actual value was found to be only Rs 68.57 million.

Investigations revealed that the technical specifications and cost estimates were prepared in collusion with the bidding companies—Maxim Incorporation Traders Pvt Ltd, Shubha Bio Medical Concern Pvt Ltd, and Vive Bio Medical Concern Pvt Ltd. The lat two firms are related to Maxim Incorporation’s founding director, Sunder Bhusal, according to the anti-graft body.

“Instead of submitting itemized quotations for each of the 12 specified components, the companies submitted lump-sum quotations. The cost estimate was then prepared based on the lump-sum quotation submitted by Shubha Bio Medical Concern Pvt Ltd, confirming evidence of collusion from the cost estimation stage itself,” CIAA added.

CIAA is seeking to recover Rs 140.68 million each from the accused.