Delhi Suspends Central Procurement System, Hospitals To Buy Medical Supplies Directly

The Delhi government has suspended the Central Procurement Agency's (CPA) procurement functions as an interim measure and directed government hospitals to obtain medicines and medical equipment on their own until a new framework is put in place, according to an official order.

The order said all pending and incomplete tenders initiated by the CPA would stand cancelled and be returned to the concerned hospitals for further action.

It said the central procurement system introduced through government orders issued in June last year involved a policy decision that should have been placed before the Council of Ministers under the Transaction of Business Rules.

The CPA, established in 1994, is an agency which procures medicines and surgical consumables for all Delhi government institutions.

Government hospitals have been directed to procure medicines, surgical consumables, medical equipment and other healthcare commodities through their respective heads of department in accordance with the General Financial Rules, GeM guidelines and other applicable procurement norms.

Existing rate contracts and procurement agreements will continue till their expiry or termination. Hospitals will also procure essential medicines on their own until the CPA finalises rate contracts for such drugs, the order said.

The development comes after Health Minister Pankaj Singh had sought a report from the Health Department following an Anti-Corruption Branch case into the alleged supply of substandard medical and surgical consumables to government hospitals.

The minister sought details on action taken against the 13 supplier firms named in the case, including whether blacklisting or debarment proceedings had been initiated.

He also asked for information on any fresh contracts, purchase orders or payments made to the supplier firms after the case was registered and whether departmental action had been initiated against public officials.