Another procurement scam at the Ministry of Health
A Scam has been unearthed in which Ministry of Health Officials are stealing people’s ideals to award tenders to Pateiotic Front (PF) cadres or those close Dr. Chitalu Chilufya, informed sources have revealed.
A Lusaka based Company, Pacific Diagnostics Limited, is currently in the process of suing Government over the loss of USD16,000 in a botched deal which was instead awarded to a PF linked company.
In the year 2019, Pacific Diagnostic Limited approached the University Teaching Hospital to solicit for Business to supply 12 Ventilators and 50 Cardiac Monitors.
UTH Management was happy with the idea and encouraged the company to approach the Ministry of Health Headquarters. The company approached the Ministry and had a meeting with the Minister of Health before being refered to the Permanent Secretary Administration.
On September 30. 2019 The PS wrote to the company formally awarding it the tender to supply the items.
In the letter, the company was asked to provide 25percent Performance guarantee. This means that Pacific had to go either to the Bank or an Insurance Company to get the bond. Pacific then went to Reliance Insurance Company based in Tanzania. Reliance gave Pacific Diagnostic a Bond at US 16000.
Before that, Pacific and Ministry of Health signed the contract on October 4. 2019 after getting a no objection from the Zambia Public Procurement Authority ( ZPPA).
On November 28. 2019, Pacific wrote to the Ministry of Health demanding an advance payment of 25 percent but the Ministry did not respond.
By this time this company had already incurred costs including ordering the Items.
Later, it was discovered that The Ministry of Health gave the same contract to another company which was paid through the Global Fund. Pacific Diagnostics Limited is now in the process of suing the Ministry of Health through the Attorney General for breach of contract. See documents attached.