Government Terminates Contract for Medical Supplies from China

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 Government Terminates Contract for Medical Supplies from China

April 2: The government has cancelled the agreement with a private company to supply medical kits from China for the prevention and control of COVID-19 pandemic.

Director-General of the Department of Health, Mahendra Prasad Shrestha shared at a press conference organized by the Ministry of Health and Population on Wednesday (April 1) that the agreement with Omni Business Corporate International Pvt Ltd has been terminated due to the company's inability to supply the required medical kits.

"The company has expressed its inability to deliver the medical supplies including rapid diagnostic kits in the stipulated time," he said, claiming the agreement signed with the supplier, therefore, was nullified.    
Shrestha further shared that the contractor, as per the agreement, had only supplied 10 per cent of the required kits and drugs at an expense of 18 per cent amount. He added the government would confiscate the surety amount deposited by the contractor and also request the authority concerned to blacklist the company for not being able to supply medical drugs and appliances as agreed.    
The Director-General also admitted that the materials imported through the company during the time of crisis cost 20 percent more than normal price. It may be noted that the government on Sunday had signed the agreement with the Omni Group to purchase medical supplies used for testing and treating coronavirus.    
Shrestha shared that a new process would be initiated for the procurement of medical appliances from Thursday  (April 2) again after scrapping the agreement with Omni Business Group.

 The ministry is preparing to import medical appliances within five days after soliciting a bid with a three-day deadline.

"For now, we have adequate stocks," he said, adding, "We can provide sufficient medical equipment to the doctors and health workers involved in the treatment of patients".  -- RSS

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