Odisha Govt allowed Seashore to run hospitals: minister

A senior cabinet minister in Odisha government today said that Odisha government had allowed ponzi group, Seashore to run hospitals, some tourist places and 100 acre of land to undertake maize cultivation in Nabarangpur district.
"The permission to run government hospitals was cancelled in the face of complaints. Seashore Group was given management of 11 hospitals by the then secretary of the health department without government order," Excise and Cooperation Minister Damodar Rout told reporters here.
Rout's statement has put the state's BJD government in further embarrassment as the CBI had already interrogated two of its party MLAs, raided the house of an MP and summoned some others.

The activities of the Seashore Group, accused of duping investors of Rs 1,700 crore, is among the 44 chitfund companies under investigation of CBI as per a direction of the Supreme Court.
Rout further said that besides hospitals, the Seashore Group was also allowed to manage certain tourism spots and cold storages. "Even there was a bid to hand over Urban Cooperative Bank, Bhubaneswar to Seashore which could not be done due to my opposition," Rout said.
When he asked how the Ponzi Company could be given hospitals, Rout said: "I was told that government (minister) order was not required for the purpose. As per NRHM provision, a district level NGO committee where district collector was chairman and state level committee with Secretary of Health department as chairman can make recommendations for NGOs to get hospital management."

BJD's senior vice-president Rout's revelation ahead of the by-elections to Kandhamal Lok Sabha seat on October 15, has come as a surprise for the ruling party leaders who find it difficult to face opposition over the chitfund issue.