Mizoram Govt to investigate ‘extra’ Health dept expenses CAG asks

Aizawl: The Comptroller and Auditor General of India (CAG) has asked the Mizoram government to investigate and take appropriate action against officials responsible for experiencing unnecessary expenditure of Rs 5.3 crore under the state health and family welfare department.
The CAG report tabled in the Assembly by Chief Minister Zoramthanga on Thursday said that the Directorate of Hospitals and Medical Education (DHME) under the Department of Health had in 2012 awarded Intergen Energy Limited (IGEL) had entered into a Memorandum of Understanding (MoU) with Renewable energy and water treatment plants in nine hospitals based on suo-moto proposals submitted by a Delhi-based firm.
According to records of the director of DHME, water treatment plants were installed in five hospitals by IGEL at a cost of Rs 50 lakh and paid to the firm between March 2012 and February 2014.
After the installations, the firm supplied water to four hospitals for short periods ranging from four months to two years, and failed to supply water to the hospital against the MoU, which stated that the firm had an uninterrupted supply of water. It said a period of 10 years after the installations.

Despite the penalty provision in the MoU, the health department did not take action against IGEL and instead entered into another agreement in June 2019.
According to the new agreement, the previous MoU was terminated and DHME will purchase the systems or equipment installed in five hospitals at a cost of Rs 9 crore in three installments.

DHME paid Rs 4.80 crore (Rs 3 crore in July 2019 and Rs 1.8 crore in December 2020) as first and second installments.
The CAG report said, however, after May 2020, supply of treated water was not resumed in all the five hospitals, including Aizawl Hospital and State Referral Hospital located at Falkaon near Aizawl.
The CAG also observed that all the hospitals were getting water supply on priority basis from the State Public Health Engineering Department and that the water supply to the hospitals before or during the MoU period with IGEL There was no shortage.

The report said that expenditure of Rs 5.3 crore on installation of water treatment plants and buyback agreement was ‘avoidable’ as there was no shortage of water in the hospitals before the contracts were signed.
It added that the department not only incurred avoidable expenditure of Rs 5.3 crore but also incurred a liability of Rs 4.20 crore.

“The state government is responsible for investigating the matter and not using the penalty provisions in time, signing the unnecessary purchase agreement, and incurring an expenditure of Rs. 5.3 crore as well as incurring a further liability of Rs. 4.2 crore. Action needs to be taken against the officials.” the report said.
It also said that the engagement of IGEL was arbitrary and the firm’s proposal was accepted by the department without ascertaining the actual need for water supply in the hospitals.

The Congress was in power in the state between 2008 and 2018, while the Mizo National Front (MNF) took over in December 2018.