HYDERABAD: In a U-turn, the Andhra Pradesh government dropped action in the case of allegations of large-scale irregularities and misappropriation of National Health Mission funds and AP Med Tech Zone Visakhapatnam.
The contract value was at Rs 367 crore. Former chairperson of AP Med Tech, Poonam Malakondaiah, denied all allegations on the affairs of AP Med Tech Zone and requested to close the case against her.
Health activist, Indukuri Venkata Rama Raju, filed the complaint, which was referred to vigilance and enforcement wing for an inquiry. The vigilance department, in September 2019, submitted a preliminary report based on the available information and prima facie observed financial and procedural irregularities.
It also stated that Andhra Pradesh Medtech Zone Limited had not furnished further records or files for conducted detailed enquiry. The AP government’s general administration department asked AMTZ to cooperate with the investigation of the vigilance wing.
The government, after examining the available material, asked IAS official Dr Poonam Malakondaiah to submit her version on the matter. In her version, she said the genuineness of documents submitted by KPMG were verified and found not to be fraudulent.
Replying to the allegation that the total project cost isRs 538 crore whereas the DPR mentions the cost asRs 563 crore, which is in excess byRs 25 crore and the reasons for the increase were not explained, she said the total AMTZ contribution without land isRs 563 crore.
She also denied allegations regarding the selection of bids for the project.
AP chief Secretary Dr Sameer Sharma, in the order, said, “Taking into consideration all the facts and reports, further action is dropped.”
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