Officials of the Anti-Corruption Bureau (ACB), investigating the drugs scam in Directorate of Insurance Medical Services (DIMS), arrested former Labour Minister Peetani Satyanarayana’s personal secretary D. Murali Mohan on Friday. He was produced in the ACB court which remanded him to judicial custody.
Mr. Mohan was a Section Officer in the Municipal Administration and Urban Development Department in the Secretariat.
Sleuths of Vigilance and Enforcement (V&E) and subsequently the ACB officials conducted an inquiry into the alleged irregularities in procuring drugs, surgical equipment, dressing material, furniture and computers in Employees’ State Insurance (ESI) Hospitals and dispensaries across the State.
During the inquiry, it reportedly came to light that the officials procured material worth about ₹988 crore without inviting open tenders. They allegedly resorted to high-level irregularities and caused about ₹150 crore loss to the government exchequer.
The V&E and the ACB officers observed that fake companies and drug stores were allegedly floated and bills were paid to the material and drugs suppliers violating the norms from 2014 to 2019.
11 arrested
The ACB registered a case and arrested 11 persons, including former Labour Minister K. Atchannaidu, two directors, two joint directors, pharmacists and others in the case so far.
“Some drugs, surgical equipment and furniture were not supplied to the dispensaries and were lying waste at the ESI Hospital, Vijayawada,” an investigation officer said.
ACB police rounded up Murali Mohan, who was on the run since a few days, and are questioning him in the case. Mr. Satyanarayana served as Labour Minister after Atchannaidu during the TDP’s regime.
Meanwhile, police launched a hunt to nab Peetani’s son, P. Suresh, in the multi-crore scam. Special teams are searching for Mr. Suresh, who is trying for an anticipatory bail.
