The Hindu : National : Govt. hospitals ticked off for financial mess

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Thursday, Apr 03, 2008
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Govt. hospitals ticked off for financial mess

Staff Reporter

NEW DELHI: Mismanagement of funds has been reported in several Delhi Government hospitals with delay in procurement of medical equipment, not getting equipment repaired within the warranty period and failure to install expensive medical equipment resulting in loss of several lakh, according to the latest report of the Comptroller and Auditor General (CAG) of India on the Delhi Government’s Health and Family Welfare Department. The report was tabled in the Delhi Assembly earlier this week.

The report has pulled up one of the Delhi Government’s largest hospitals Lok Nayak Jai Prakash (LNJP) for procuring two infant ventilators through an Indian agent of a foreign firm and then not being able to install it even after 26 months of their receipt due to various defects. “Consequently, the hospital could not derive intended benefits from the investment of Rs. 13.22 lakh on procurement of these ventilators. Despite being requested by the hospital, the supplier neither rectified the defects nor installed the ventilators. The supply order provided for payment of compensation to the hospital for breach of warranty in the event of supplier’s inability to rectify the defects within a reasonable period. However, the hospital did not claim any compensation from the supplier for breach of the warranty,” states the report.

Also reported with negligence is Deen Dayal Upadhyay Hospital which incurred an avoidable expenditure of Rs. 34.25 lakh on purchase of oxygen cylinder. “Inability of DDU to get an oxygen concentrator repaired within the warranty period led to an avoidable expenditure of Rs.34.25 lakh on procurement of 38,813 oxygen cylinders from local sources,” notes the report.

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