Minister for Labour and Employment G. Jayaram said on Friday that stringent action would be taken against the three directors of the Insurance Medical Services (IMS) and all others involved in the ESI scandal.
Addressing the media here, Mr. Jayaram said that former Ministers K. Atchannaidu and Pithani Satyanarayana, who were allegedly involved in the scam, would also not be spared if they were found to be guilty.
Mr. Jayaram stated that the pattern appeared to be similar between the companies in Andhra Pradesh and Telangana, which looted people’s money.
Staff Reporter in Srikakulam writes:
Roads and Buildings Minister Dharmana Krishnadas said the government would order an investigation into the alleged irregularities in the purchase of medicines and medical equipment for the ESI hospitals.
In a release here, Mr. Krishnadas alleged that Mr. Atchannaidu was involved in the scam as he had allowed the purchases without calling for tenders.
“The process of calling for tenders is compulsory for works costing more than ₹5 lakh. But Mr. Atchannaidu had chosen the nomination process for purchases of ₹500 crore. It is nothing but misuse of power and funds. The investigation that is based on the Vigilance report will continue,” said Mr. Krishnadas.