Audit at HBPCL: From fund transfer to London to losses in crores, CAG raises questions on Haffkine’s functioning

The Maharashtra government is currently probing a series of irregularities at Haffkine Bio Pharmaceutical Corporation Limited after the CAG’s inspection report in July 2023 made observations which range from transfer of funds to London-based bank account to losses to the company amounting to over Rs 50 crore on account of not following the Supreme Court order.

The report stated that the HBPCL suffered losses worth Rs 50.69 crore in a procurement of polio bulk for manufacture of Oral Polio Bulk in tenders invited in February 2016. The legal battle in this tender between the HBPCL and the contractors involved, stretched till August 2017. The audit observed that ‘not complying with the directions of the Supreme Court, the company incurred the business loss of Rs 50.69 crore.’

On September 27, the office of the Principal Accountant General (Audit) – 1 wrote to the state government seeking its response on the same within four weeks. An official from Medical Education Department said the matter is being studied and is likely to be put up for discussion on the November 6 board meeting of the HBPCL.

The inspection report has also highlighted the payment of Rs 15.6 lakh to the London branch of Barclays Bank where the HBPCL does not have any account. “The company, vide purchase order No. BN1720P1 dated 14.06.2017, had sold 10,000 vials or Bivalent Oral Polio Vaccine valuing US $ 24,000 (Rs 15.6 lakh) to Bionet-Asia Co. Ltd. (Bionet), Thailand in October 2017. As per the directions of the Bionet, the consignment was delivered (October 2017) to Medicines Sans Frontiers (MS) Logistique, France. Audit observed that the company has not received Rs 15.6 lakh since October 2017,” the report stated.

It further observed two invoices being issued with one carrying account number of Barclays bank. The audit observed that none from HBPCL persuaded the matter since October 2017 and added that ‘it does not rule out the possibility of wrong invoices being issued to the company.’

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The audit has also raised questions on irregularities in appointments, including that of S V Shankarwar, who is appointed on contractual basis within a fortnight of retirement despite Secretary, Medical Education Department, disapproving his appointment last year because of complaints received against him.

The Indian Express has learnt from sources that a complaint in this regard has been submitted to Chief Secretary Manoj Saunik last week as well as Dinesh Waghmare, Principal Secretary, Medical Education Department under whose jurisdiction the HBPCL falls and Abhimanyu Kale, Commissioner, Food and Drugs Administration (FDA) who has been given the additional charge as Managing Director of the HBPCL.

When The Indian Express sought comment from Waghmare and Kale about the audit report and its observations, both said that they were unaware about the report and it was not possible for them to comment.