For seven years, between 1997 and 2004, two pharmaceutical companies, according to the World Bank’s review, sabotaged an elaborate system of checks and balances of both the Government of India as well as the World Bank. Not just in one healthcare project but three — spanning across reproductive health, control of TB and malaria. Ironically, these two companies secured contracts although they had been debarred by the Government in another health scheme — a fact that remained undetected.

In July 2007, a World Bank investigation found that Delhi-based Nestor Pharmaceutical and Mumbai-based Pure Pharma fixed their bids to allegedly collude to secure a majority of pharmaceutical contracts under both the Reproductive and Child Health (RCH I) project and the Child Survival and Safe Motherhood project. The Bank’s review said they not just colluded to win contracts, they failed to deliver quantities of drugs they should have and even diluted the drugs they supplied.

“After the government blacklisted them in 2006, both the companies have gone to court. Nestor has got a stay order on further action from the court while Pure Pharma has been blacklisted. The CBI inquiry into them is awaited,” said Naresh Dayal, Secretary, Ministry of Health and Family Welfare.

The new World Bank’s Detailed Implementation Review, as reported by The Indian Express, showed that the RCH I scandal was just the tip of the iceberg. The same companies have been accused of colluding, rigging bids and tampering with the quality of drugs in two other major healthcare projects, the Malaria Control Programme (MCP) and the TB Control Programme (TCP).

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