A MINISTRY of Health audit of accounts for the financial year ended December 31, 2020 has revealed that the ministry awarded 36 contracts to various suppliers to deliver N-95 face masks but they delivered KN-95, and further that medical personnel who used the said face masks may have been exposed to infections.

According to an interim management letter on the audit of accounts for the Ministry of Health for the financial year ended December 31, 2020 and seen by News Diggers, it was revealed that the suppliers delivered 2,990,000 x KN-95 face masks costing K149,500,000 instead of the N-95 face masks that the contractors invoiced the Ministry per the contract agreements, resulting in an overpayment of K64,839,700.

Auditor General Dick Sichembe, who signed off the letter, stated that the procurement staff must justify the acceptance of substituted products.

“During the period under review, the Ministry of Health awarded 36 contracts to various suppliers for the supply and delivery of 2,990,000 x N-95 face masks at a total contract sum of K214,339,700. However, a review, of records such as delivery notes and invoices revealed that the suppliers delivered a total of 2,990,000 x KN-95 face masks costing K149,500,000 instead of the N-95 face masks that the contractors invoiced the Ministry of Health per the contract agreements, resulting in an overpayment of K64,839,700. Risk, medical personnel who used the face masks may have been exposed to infections. Recommendation, the procurement staff must justify the acceptance of substituted products,” the Auditor General stated.

The Auditor General also revealed the ministry entered into a contract with Sacoza to supply inspection gloves and thermometers but the supplier delivered substituted products resulting in a loss of K2,911,750.

“On 10th September 2021, the Ministry of Health entered into a contract with Sacoza Industrial Limited on contract No. MOH/SP/COVID-19/002/20-165 for the supply and delivery of 50,000 Nitrile inspection gloves, 50,000 Latex examination Gloves and 5,000 non-contact electronic thermometers at a contract sum of K32,500,000 with a delivery period of ex-stock. The following were observed, according to the contract specifications, the supplier was required to deliver a total of 50,000 Nitrile Inspection gloves at a unit price of K275 each and 50,000 Latex Examination gloves at a unit price of K225,” read the letter.

“However, the supplier delivered a total of 98,170 Latex Examination gloves at a unit price of K225 each resulting in a loss of K2,911,750 as a result of the product substitution. As of May 2021, the Ministry had not taken any action against the supplier. Recommendation, management should ensure that the applicable remedies in the contract are effected to address the breaches.”

However, the letter stated that the supplier had not been paid as of May 2021.

“Although the supplier delivered medical supplies in amounts totaling K22,088,250, the supplier had not been paid as of May 2021. The supplier can sue the ministry for breach of contract. Recommendation, the Ministry must make efforts to dismantle the outstanding amount to avoid litigation,” the letter stated.

The Auditor General further revealed that the ministry entered into a contract with five suppliers to supply protective equipment, essential medicines among other medical supplies but that as of May 2021, the suppliers had not delivered items worth K81, 300,576 and US$ 203,964.

“ A review of the tender records revealed that between 31st July and 27th November 2020, the Ministry of Health entered into contracts with five suppliers at a total value of K173,126,966 and one supplier at a contract sum of US$ 3,229 for the supply and delivery of personal protective equipment, laboratory commodities, testing kits, essential medicines and medical supplies for use in the fight against COVID-19 with delivery period ranging from ex-stock to eight days. However, it was observed that as of 18th May 2021, the suppliers had not delivered items worth K81,300,576 and US$ 203,964 resulting in delayed deliveries ranging from 28 to 32 weeks,” stated the Auditor General.

“As of May 2021, there was no evidence that the Ministry had taken any action against the suppliers. Risk, due to delayed delivery of requisite supplies, the response efforts against the pandemic were adversely affected. Recommendation, management should ensure that contract provisions in respect of the delayed deliveries are effected.”