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Medical equipment scam: Govt orders legal action against 14 contractors

These contractors, already blacklisted, embezzled thousands of crores of taka over the years through overbilling and false billing of equipment purchase

Update : 25 Jun 2020, 09:05 PM

The Ministry of Health and Family Welfare has directed the authorities concerned to take legal action against 14 blacklisted suppliers of medical equipment for their involvement in corruption, fraud and misuse of public funds in the health sector.

The order came following recommendations by the Anti-Corruption Commission (ACC).

A letter in this regard, signed by Director (Administration) Dr Md Belal Hossain, was sent out to the Directorate General of Health Services (DGH) on Thursday.

Earlier on June 9, another order signed by the ministry’s deputy secretary, Hasan Mahmud, asked to ban the suppliers – both individuals and companies.

One of the blacklisted suppliers is Rubina Khanam, owner of Rahman Trade International and a clothing store named Rupa Fashion, who is the wife of Abzal Hossain, an accountant at the Directorate General of Health Services (DGHS).

Other blacklisted suppliers include Abdullah Al Mamun, owner of Anik Traders; Munshi Farrukh Hossain, owner of Ahmed Enterprise; Manzur Ahmed, owner of SK Traders and Manila Medicine; Mohammed Joynal Abedin of Ovi Drugs; Md Alamgir Hossain of Albira Pharmacy; Mohammad Mintu of S Traders; Md Abdus Sattar Sarkar and Md Ahsan Habib of Mercantile Trade International; Md Zaher Uddin Sarkar of Bengal Scientific and Surgical Company; Asadur Rahman of Universal Trade Corporation; Aftab Ahmed of ASL, and Moksedul Islam, owner of Blair Aviation.

In its letter to the DGHS, the Health Ministry mentioned that multiple cases had been filed against these contractors for corruption.

Earlier on December 12, the ACC wrote to the cabinet secretary recommending to blacklist the medical equipment suppliers, as they found evidence of irregularities during an investigation. 

They found that these suppliers, with connections with officials within the Health Ministry and its agencies, had formed a syndicate, embezzling thousands of crores of taka over the years by supplying equipment that was not required, and charging exorbitant prices for them.

The ACC filed nine cases against these contractors in 2015, 2017, and 2019.

In its report, the anti-graft watchdog said it had found irregularities in the purchase of heavy machinery and medical equipment at various medical colleges and hospitals that are under the authority of the DGHS.

In some cases, they charged prices several times higher than the market prices of the equipment, or they charged by providing fraudulent bills, showing purchase on paper only and taking the money without supplying any equipment.

The ACC also recommended taking action against the ministry employees who are involved in the scam.

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