RM505m down the drain and no one is held responsible!

 No News Is Bad News

For image info, go to https://www.worldbank.org/en/country/malaysia/publication/world-bank-malaysia-economic-monitor-june-2020-surviving-the-storm (World Bank Malaysia Economic Monitor (June 2020): Surviving the Storm)

RM505m down the drain and no one is held responsible!

UPDATE:

Corruption watchdog demands accountability after damning PAC report

Transparency International-Malaysia says Covid-19 is no excuse for ignoring procurement SOPs in the purchase of ventilators.

FMT Reporters - 3

Transparency-International Malaysia president Muhammad Mohan said it was shocking to know that deals on the emergency procurement of ventilators were carried out on WhatsApp. (Bernama pic)-Interalaysia president Muhammad Mohan said it was shocking to know that deals on the emergency procurement of ventilators were carried out on WhatsApp. (Bernama pic)

PETALING JAYA: The health ministry should report any elements of corruption involved in the purchase of ventilators at the height of the Covid-19 pandemic, says Transparency International-Malaysia (TI-M) president Muhammad Mohan.

This comes in the wake of a recent Public Accounts Committee (PAC) report that exposed a breach of procurement protocols while finding that 104 out of the 136 ventilators ordered were unusable.

“It is shocking to know that deals on emergency procurement of ventilators were carried out on WhatsApp.

“There must be procurement SOPs in the health ministry. Covid-19 is not an excuse to violate SOPs. So, why were they not followed? Who is accountable for this?” he asked in a statement released today.

Muhammad said the PAC’s findings show a severe lack of accountability within the public procurement system. If not addressed, he said the country would not improve its standing in the annual TI corruption perception index.

“TI-Malaysia strongly urges current health minister Dr Zaliha Mustafa to get to the bottom of this scandal.

“She must explain to the media or Parliament what action has been taken to address it and how the ministry intends to prevent this from happening again.”

He said official procurement confirmation should always follow proper supply contracts, including detailed specifications of the product, warranties, supplier obligations for testing and commissioning, deliverables and technical support.

Muhammad said equally concerning was Pharmaniaga Logistics Sdn Bhd’s involvement in acting as a middleman for the procurement of ventilators worth RM24.1 million.

He said this was done without a proper contract, further raising questions about the health ministry’s accountability and transparency in procurement procedures.

He said the former health minister and secretary-general should give an explanation for this as it happened under their watch.

“It is strange the unit for integrity and compliance in the health ministry did not have oversight on this. Or did someone higher up overrule their advice on the procedures?

“Civil servants are not speaking up. This is the problem in our country. They fail to understand that as civil servants they have fiduciary duties to protect taxpayers’ money,” he said.

The PAC report found that even though Pharmaniaga Logistics lacked experience in procuring medical equipment of this type, it was instructed to make an upfront payment due to its “existing relationship with the health ministry”.

The report, released yesterday, also stated that the absence of a written agreement between the ministry and Pharmaniaga Logistics had resulted in a lack of accountability for the faulty equipment.

MMA president Dr Azizan Abdul Aziz earlier said the report raised more questions than answers, including the procurement of ventilators supplied to the government.

“How 104 out of 136 delivered ventilators were unusable, without any party being held accountable, demands a thorough explanation,” she said in a statement.

 KUALA LUMPUR, Oct 30, 2023: What type of Health Ministry and Governments Malaysia had and have?

Rubbish or garbage, to say the least.

RM505 million worth of vaccines have gone down the drain but there is no accountability and responsibility.

No one has been hauled up for accountability or held for responsibility.

Do you know how much RM505 million can help ease the sufferings of the poor?

If Prime Minister Anwar Ibrahim’s Madani Unity Government (UG) does not act to hold anyone accountable, then it is no different from previous corrupt and incompetent Barisan Nasional (BN) Governments.

Really, there is not much hope for a brighter future for Malaysians and Malaysians with such rubbish or garbage governments.

No News Is Bad News reproduces below a news report on what the Public Accounts Committee reported:

Expired vaccines cost RM505mil, says PAC

The Public Accounts Committee report states that 8.5 million vaccine doses had expired as of June 1, 2023 despite the shelf life being extended.

FMT Reporters - 30 Oct 2023, 12:48pm

The Public Accounts Committee’s report said there was still an excess of vaccines due to decreased vaccination demand, delays in receiving vaccine supplies and donations from foreign countries.

PETALING JAYA: The Public Accounts Committee’s (PAC) report on the country’s Covid-19 management revealed that the 8.5 million expired vaccine doses had cost RM505 million.

“Although the shelf life of the vaccines had been extended up to 18 months from the production date, 8.5 million vaccine doses costing RM505 million still expired as of June 1, 2023,” read the report.

The report, which was published on the Parliament website today, stated that the health ministry had procured the vaccines based on projected demand.

However, there was still an excess of vaccines due to “decreased vaccination demand, delays in receiving vaccine supplies and donations from foreign countries”.

The PAC also found that the deliberations, assessments and decisions for the procurement of ventilators were conducted using WhatsApp instead of standard procedures due to lockdown constraints and the urgency at that time.

It said even though Pharmaniaga Logistic Sdn Bhd lacked experience and expertise in procuring medical equipment such as ventilators, the firm was instructed to make an upfront payment for the ventilators due to its “existing relationship with the health ministry”.

“The absence of a written agreement between the ministry and Pharmaniaga Logistics has resulted in a lack of accountability regarding the non-functioning 104 ventilator units.

“To date, the uncertainty surrounding the company’s role in this matter has hindered the legal action process from being carried out,” it added.

The committee also found discrepancies in the information provided by the health ministry and Pharmaniaga Logistics on the warranties for 136 ventilator units.

“A review of the tender documents submitted by the company to the PAC revealed that warranties were indicated by the supplier.”

However, the PAC discovered that these tender documents did not cover all 136 ventilator units and that there was an insufficient number of acknowledgment receipts.

Previously, Bandar Kuching MP Dr Kelvin Yii called on the government to take action against those responsible for the purchase of 93 defective ventilators that cost the government RM13 million.

He said the negligence of those involved in the procurement had not only wasted public funds but compromised the quality of healthcare.

The report added that due to the extraordinary global situation at the time, emergency procurement measures were put into place to secure supplies of vaccines, ventilators, personal protective equipment (PPE) and other equipment needed to combat the spread of the virus.

“At that moment, the world was grappling with a crisis of medical equipment shortages, leading to fierce competition to acquire these medical supplies.

“Failure to make swift decisions would have denied countries the opportunity to obtain essential supplies and, ultimately, resulted in loss of lives,” the report read.

The report also revealed that a majority of the PPE procured could still be used before their expiration date. It said 850,000 units of boot covers, costing RM927,000, were set to expire by the end of 2024.

PAC’s recommendations

The committee recommended that government procurement officials ensure public interest is safeguarded during emergencies and that proper documentation is diligently carried out.

It also urged the health ministry to immediately review the warranty on all the 136 ventilator units and take appropriate action against those responsible.

The ministry must also ensure the excess PPEs are used up before they expire.

“The government must ensure the local industry is capable of producing medical equipment and pharmaceuticals to reduce dependency on foreign nations and strengthen the public healthcare system.”