NEW DELHI, Feb 19: Prime Minister I K Gujral has one more problem on his plate. It's a battle over condoms and being in charge of the Ministry of Health, Gujral now has to decide.The warring parties: Minister of State for Health and Family Welfare Renuka Chowdhury and Hindustan Latex Limited, which has been supplying almost its entire production capacity of condoms to the ministry.
The issue: In September, Chowdhury cut HLL's annual order for condoms and diverted the majority share to four private companies. Out of a total order of 707 million pieces (worth around Rs 7 crore), HLL bagged supply of only 205 million pieces and the private companies, put together, 502 million pieces.
The reason: Chowdhury says the decision was based on hard investigation as well as feedback of poor quality condoms which she received from NGOs, sex workers and State Governments. She says the order was given on the basis of the production capacity and past performance of the five companies.
Chowdhury's move has sentshock-waves in the HLL. Company officials say they may even have to shut down their condom manufacturing units if the Health Ministry does not pump in more orders. Says HLL Chairman and Managing Director G Rajamohan: ``In September last year we shut down our Copper T manufacturing unit because of a drastic reduction in orders from the Health Ministry. Now, our condom units are facing a grave financial problem due to the very same reason.''
Chowdhury says her priority in the national health programme is to prevent births and HIV positive cases. ``My priority is not to keep afloat a PSU which is manufacturing sub-standard condoms and thereby putting the entire health programme in jeopardy,'' she says.
Elaborating on what she describes as the unfolding ``condom scam'' Chowdhury says when she came to the Ministry in June 1997 she found the files on HLL full of inquiries and reports about the poor quality of condoms. Two former Health Ministers, A R Antulay and Salim Sherwani had also noted about the poorquality of HLL's supply.
Chowdhury says she also discovered that the transactions done by some top HLL officials had come in for scrutiny of the Comptroller and Auditor General (CAG) and the Central Vigilance Commission (CVC) and that some deals were even now subject of a inquiry by the Central Bureau of Investigation. She has therefore despatched all these papers to the Prime Minister's Office (PMO).
Documents accessed by The Indian Express show that the PMO has taken note of the adverse remarks made by the Minister against HLL's Chief Executive. A note signed by a Joint Secretary in the PMO on December 23 states that an ``administrative warning'' should be be issued to Rajamohan for certain ``procedural lapses'' pointed out by the CVC. The note also mentions that the proposal for Rajamohan's extension ``should mention the fact of issue of administrative warning.'' The CBI has written to the ministry stating that there is enough evidence against the company to commence a Preliminary Inquiry (PI).The CBI's confidential report states they have ``established the existence of a conspiracy'' by top HLL employees in forging documents to show transfer of 14.92 million pieces from the HLL unit in Thiruvanthapuram to Belgaum and in selling wasted and rejected condoms to various state welfare organisations. Chowdhury says when she realised the implications of all this, she literally lost her sleep. ``By pumping rejected condoms into circulation the HLL could be causing more births or HIV cases. Anyone who has contributed to the family planning programme being marred and devalued must be severely punished,'' she says. Senior officials in the Health Ministry explain that the cut in HLL orders for 1997-98 has been vindicated by quality tests carried out by the Government-affiliated Central Indian Pharmacopeia Laboratory (CIPL) -- after September 1997. In all, samples from 29 batches of condoms manufactured by HLL had been tested -- and all of them failed CIPLs twin ``water''' and ``bursting'' test.
Even afterthis, HLL received an order for supply of 75 million pieces under the ``social marketing'' scheme against the direction of the minister that no further orders be given to HLL till the failed batches were withdrawn from circulation and replaced. This was done as late as January 1998.Privately, HLL officials say they are aware of the failed tests but claim the procedure followed by the CIPL may itself be inaccurate. Besides, they say, two other private units had also failed the tests, though they may be supplying condoms in smaller quantities. The subject of the failed tests has also been discussed in a October 4, 1997 letter written by a Deputy General Manager, HLL to the Health Ministry. The letter states HLL was ``very much concerned about the reported failure of the batches and it is being investigated... we are also taking all measures to avoid recurring of such failures in future.''
In the meantime, Gujral has received a plea in favour of HLL from 22 Lok Sabha and Rajya Sabha MPs hailing from Kerala.The representation states that the non-utilisation of manufacturing facilities will lead to thousands of people being unemployed. These MPs have concluded their joint representation with the plea that ``the involvement of the private sector in this vitally important sector will lead to malpractices at all levels. Scams will be the end result instead of prevention of AIDS or planning of the family size...''
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
