Ex-Andhra minister Atchannaidu arrested in ESI scam

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Amaravati, June 12 (IANS) Andhra Pradesh’s Anti-Corruption Bureau on Friday arrested former minister and Telugu Desam Party (TDP) MLA K. Atchannaidu in connection with his alleged involvement in the ESI scam.
The member of State Legislative Assembly was taken into custody from his house in Nimmada village in Srikakulam district around 7.30 a.m. He is likely to be produced before a magistrate in Visakhapatnam.
He is allegedly involved in irregularities in procurement of medicines and equipment for Employees’ State Insurance (ESI) hospitals during the TDP rule.
In February this year, the Vigilance and Enforcement department had announced that unearthed a major scam in procurement of medicines and other items worth over Rs 975 crore in ESI hospitals by the Insurance Medical Services (IMS) directorate in the last five years.
Atchannaidu, who was minister for labour and employment in the previous TDP government, allegedly directed the then IMS director to issue work orders to a company named aTele Health Services Pvt Ltd’, without inviting open tenders.
The TDP leader had denied involvement in any irregularities.
Meanwhile, TDP president and former chief minister N. Chandrababu Naidu alleged that Atchannaidu was akidnapped’ from his house.
The leader of opposition said Chief Minister Y. S. Jagan Mohan Reddy would be responsible for any harm to the former minister.
Naidu demanded the Director General of Police to reveal the whereabouts of Atchannaidu.