You are the Director of a State Drug Procurement Corporation. A shortage of paediatric anti-cancer chemotherapy drugs has reduced supply to 60 per cent of demand for the next three months. A foreign-pharma representative offers a ‘compassionate’ free supply for one quarter — on condition that you place a confidential MoU signalling future preferred-supplier status. The State Public Health Director, two paediatric oncologists and a parent-advocacy group are split. The drug-controller has cleared the imported batch. The Cabinet meets in 10 days to discuss budget reallocation. What course of action would you take? Justify with the values involved.
Subtopic: Section B · Case Study · Conflict of interest — pharma compassion offer
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1. Dilemma: immediate paediatric lives vs procurement integrity and future-market distortion.
2. Stakeholders: child patients and families, oncologists, pharma firm, future suppliers, Public Health Director, Cabinet, CAG.
3. Options: (a) accept the MoU silently — children get drugs, future tender compromised; (b) refuse the offer entirely — principled but children suffer; (c) accept the free batch under a transparent emergency-purchase protocol with no preferred-supplier clause, and parallel-track emergency tender + Cabinet ratification — hard right.
4. Decision: Option (c) — accept via GFR Rule 170 emergency provision with no future commitment; convene an emergency procurement committee; brief CAG in advance.
5. Safeguard: publish offer letter and MoU draft on portal; involve drug-controller for QC; file note recording reasons; future-tender insulated by a written declaration of non-preference.
- GFR 2017 Rule 170 — emergency-purchase provision
- DoPT Conflict of Interest Guidelines 2014
- Bardhan principle of beneficial-but-bounded gifts (PCA 1988 Sec 7)
- Kant's universalisability test — would all suppliers be allowed the same?
- Right to life of the child (Article 21) — immediate weight
- Future-tender capture — long-term harm to market competition