Kochi: Supplyco is likely subverting the tender conditions for the purchase of cloth bags which are being used for supplying state government’s grocery kits to people during Covid pandemic. It is even suspected that a high-ranking officer favoured a few vendors and got Rs 1.5 crore in kickbacks.

Corruption involving crores of rupees had likely taken place in procuring cloth bags from certain companies. As all e-tender norms were thrown to the winds in the last two months, the said companies reaped about Rs 6.5 crore last month.

The representatives of a company which had got a raw deal in the procurement process charged that it was due to corruption an favouritism that they lost out.

What exactly happened

Since Supplyco comes within the purview of Store Purchase Manual, tenders must be invited for procurement.

The companies close to a high-ranking officer in Supplyco had participated in the tender process, quoted the lowest price and then withdrew. This resulted in a situation where cloth bags were not available for distribution of grocery kits. Subsequently cloth bags were procured at a high rate from companies which had not participated in the tender.

The companies that participated in e-tender invited in September and quoted Rs 6.20 and Rs 7.14 respectively, backed out after getting permission to supply the cloth bags. With the first three companies backing out, a situation arose wherein cloth bags had to be purchased at a higher rate at the depot level.

A Bengaluru-based company which took part in the e-tender process in October had quoted Rs 6.50. Even though Supplyco placed an order for 1 crore cloth bags, the company backed out. The company which came second quoted Rs 8.49, it was dumped. In its place another company which had not participated in the tender process was included.

The fraud came to light when the company lodged complaints with higher officials including the Secretary of the Department of Food, Civil Supplies and Consumer Affairs.

Fraud in the guise of Kudumbashree units

The state government had asked to procure cloth bags at Rs 13.50 from tailoring units functioning under the Kudumbashree Mission to help them during the Covid pandemic. However, in the guise of 15 Kudumbashree units at Palakkad, the companies procured cloth bags manufactured at a cost of Rs 7.50 in Tamil Nadu and sold it to Supplyco at Rs 13.50.

The cloth bags made of very poor quality polyester are presented as cotton bags after applying chemical coating. These bags not only get torn fast but they are also of very poor quality and hazardous to the environment.

Interestingly, the Supplyco has invited tender for cloth bags in November as well.

The Kerala State Civil Supplies Corporation Limited is popularly known after its brand name Supplyco. The firm was engaged by the government for the stocking and supply of provisions in areas hard hit by Covid lockdown in the early part of this year.