Ventilators not up to specs, RM505m loss from expired vaccines - PAC

 

The Public Accounts Committee (PAC) has found several irregularities in government procurements during the height of the Covid-19 pandemic, causing massive losses of taxpayers' monies.

In a report released today, PAC highlighted the absence of a contractual agreement for the purchase of 136 ventilators through a local pharmaceutical giant.

This effectively prevented the government from initiating legal action to recover losses from 104 faulty ventilators that the Health Ministry received in 2020.

PAC also revealed that the government has sustained RM505 million in losses due to expired Covid-19 vaccines. The amount involved some 8.5 million vaccine doses which have reached expiry by June 1 this year.

It said there was also an oversupply of personal protective equipment, where some 850,000 boot covers worth RM927,000 will reach their expiry date by the end of 2024.

'Contradicting statements'

"Despite PLSB (Pharmaniaga Logistics Sdn Bhd) not having the experience and expertise in procurement of medical equipment such as ventilators, PLSB was ordered to upfront payment for the ventilators due to established rapport between the Health Ministry and PLSB.

"Absence of written agreement between the ministry and PLSB has led to no one being held responsible for the failure of 104 ventilators (that the Health Ministry received).

"Until today, the ambiguity of PLSB's role in this issue has prevented (the government) from initiating the process for legal action," the report said.

The committee also found contradicting statements between the Health Ministry and PLSB in regard to warranties for the 136 ventilators.

On Feb 16, according to the second series of the Auditor-General's Report 2021, the ministry ordered 136 ventilators with a price tag of RM20.1 million under emergency allocation. However, it was later found that some could not be used.

The machines, ordered from overseas manufacturers, were meant to beef up government hospitals’ medical assets during the Covid-19 pandemic.

PAC, however, did not put the blame on the Health Ministry as a whole.

In its report, the committee took note of the pandemic situation that caused a global shortage of medical equipment and competition between countries to get their hands on life-saving tools.

Coupled with movement control orders and other outbreak factors, PAC said, this had pushed the government to make quick decisions, including its officials having to conduct discussions, evaluations and make decisions via WhatsApp.

‘Vaccine oversupply’

According to PAC, the oversupply of vaccines had led to over RM500 million in losses despite the Health Ministry having extended the shelf life of vaccines in their stock for up to 18 months.

However, it said the ministry had done the procurement based on their projection of vaccine doses required by the country.

"...the oversupply of vaccines happened because of a decrease in the number of vaccine demands, as well as delayed delivery of vaccine doses that were ordered or donated."

Taking into consideration the experience learnt during the pandemic, PAC urged officers in charge to put public interest first in the future and not let their guard down just because of an emergency.

The committee said documentation for government procurement must be carried out diligently even in such difficult times.

It also suggested that the Health Ministry check the status of warranties for all 136 ventilators and ensure appropriate action is taken against those responsible for the matter.  - Mkini