National
Health Ministry cancels tender to purchase medical equipment from China over controversy
Controversy had erupted over the government's decision to purchase medical equipment from China despite high costs and concerns over standards.Arjun Poudel
The government on Wednesday scrapped its agreement with a private company to purchase protective gear, reagents and other medical equipment from China.
“We have scrapped the deal we signed with Omni Business Corporate International, which had committed to supply 19 items including protective gear and testing kits,” Mahendra Prasad Shrestha, director-general of the Department of Health Services, said. “The company has so far supplied us 10 percent of the total items. We will call another tender tomorrow and purchase necessary equipment through a fast track process.”
The first lot of the medical equipment, worth a total of $10,390,400, arrived in Nepal on March 29. The second and final shipments were due on April 2 and April 5 respectively. With the tender cancelled, no more shipments should arrive.
The first consignment arrived on Sunday morning on a Nepal Airlines plane sent to Guangzhou to ferry the consignment home.
According to Shrestha, Omni Business Corporate had committed to supply remaining items by Monday and had later sought a deadline of April 2. However, the contractor had not yet contacted concerned officials at the ministry and department and there was also no possibility that the company could supply within the deadline.
The Department of Health Services on March 26 had awarded the tender to Omni Business Corporate International for medical equipment necessary to fight the Covid-19 pandemic.
With the cancellation of the contract, the company’s Rs50 million security deposit has been seized.
But the contract had run into controversy, as it was awarded without any competitive bidding, despite a number of importers applying for the contract. There were also concerns over their price and standards, especially since a number of European countries have recalled thousands of pieces of defective Chinese medical equipment, including testing kits and masks.