New Delhi, July 10 (IANS) The health ministry has accumulated dues of nearly Rs.20 crore over a period of 18 years as it supplies medicines to states on a credit basis and 53 percent of this amount is due from Maharashtra alone, the country’s official auditor said.
The Comptroller and Auditor General (CAG) said in its report tabled in parliament that unrestricted supply of medicines on credit basis by the Government Medical Stores Depot (GMSD), Mumbai, to various client departments resulted in accumulation of unrealised dues of Rs.19.73 crore over a period of 18 years from 1990 to 2008.

The GMSD procures and supplies medicines required by hospitals and dispensaries run by the central and state government departments and local bodies.

“Scrutiny of GMSD records revealed (May 2006/June 2008) that supply to government departments were made on credit basis and to the non-government departments on cash basis. As of August 2008, Rs.19.73 crore remained to be recovered from various organisations which had received supplies on credit basis during the period of 1990 to 2008,” the report said.

“More than 53 percent of the outstanding amount was due from the Maharashtra government alone. The Maharashtra government was being reminded regularly and that supply of medicines to them had been stopped till clearance of their dues,” the report added.

The report added: “More effective action needs to be taken to ensure that dues are cleared promptly so that supply of medicines to government hospitals at economic rates does not suffer.”