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The Indian Council of Medical Research said on Monday it had cancelled the rapid test kit procurement tender floated earlier through an Indian importer of the Chinese kits after the equipment was found faulty in field tests and asked states to send them back to the suppliers.
In an advisory sent to chief secretaries of all states and Union Territories on Monday, the Indian Council of Medical Research (ICMR) said it “evaluated the kits of Guangzhou Wondfo Biotech and Zhuhai Livson Diagnostics in field conditions. The results have shown wide variation in their sensitivity, despite early promise of good performance for surveillance purpose”.
“In view of this, states are advised to stop using these kits, procured from the above mentioned companies and return them to be sent back to the suppliers,” it said.
The health ministry on its part issued a statement saying that after receipt of some supplies, ICMR has conducted quality checks on these kits in field conditions.
In its advisory, the ICMR said that several states have procured rapid antibody test kits and on their demand the ICMR also provided these kits with clear instructions that they are to be used only for surveillance purpose.
Some states have raised issues regarding their performance during the testing exercise that they have undertaken.
Additional Director General of ICMR G S Toteja advocated that RT-PCR throat/nasal swab test is the best use for diagnosis of COVID-19. RT-PCR test detects the virus early and is the best strategy to identify and isolate the individual, the advisory said.
ICMR also said the country had not lost a single rupee in the process.
ICMR’s clarification came after opposition Congress demanded transparency in the procurement and rendering process of all COVID-19 related equipment following evidence that the Indian importer and the distributor of the kits had profiteered to the extent of Rs 18.75 crore by selling the kits at higher prices to ICMR.
Congress leader Rahul Gandhi was the first to raise the issue on Monday with party spokesman Manish Tewari later alleging that money had changed hands and the ICMR needed to come clean.
“The kits were bought from China at the cost of Rs 245 per kit, and sold to ICMR at the cost of Rs 600 a kit. There were five lakh kits that were imported. The importer sold the kits to the company contracted by the ICMR for procurement at the rate of Rs 400 a kit and this contractor sold the same kit to ICMR for Rs 600 per kit. Both profiteered to the extent of Rs 18 crore,” Tewari said.
ICMR however rejected any allegations of a scam and said the order had been cancelled and no advance payment was made to anyone.
“Not even a single rupee has been lost,” ICMR said.
ICMR earlier said it decided to go with Wondfo’s exclusive distributor for India for the kit because this distributor quoted an all inclusive price for FOB (logistics) without any clause for advance whereas the Chinese firm when contacted directly by ICMR had sought 100 per cent advance payment without giving any timeline commitments.
“It needs to be remembered that this was the first ever effort by any Indian agency to procure such kits and the rate quoted by the bidders was the only reference point. After receipt of some supplies, ICMR has again conducted quality checks on these kits in field conditions. Based on scientific assessment of their performance, the order in question (Wondfo) along with order in respect of another make found under-performing have been cancelled.”
“It needs to be stressed that ICMR has not made any payment whatsoever in respect of these supplies. Because of the due process followed (not going for procurement with 100 per cent advance amount), GoI does not stand to lose a single rupee,” ICMR said.
ICMR had placed the order of five lakh rapid kits that were procured through the Indian distributor of the equipment by Chinese firm.
The government meanwhile said it had enough stocks of RTPCR kits to test all eligible people for COVID.
