PAC report: Machines to tackle pandemic were procured via WhatsApp
PETALING JAYA: Deals on the emergency procurement of ventilators during the Covid-19 pandemic was done over WhatsApp, a departure from the norm, revealed a Public Accounts Committee (PAC) report on the management of the Covid-19 outbreak.
Although 104 out of the 136 ventilators supplied by Pharmaniaga Logistics Sdn Bhd (PLSB) to the Health Ministry at a total cost of RM24.1mil ended up being unusable, no party was able to take responsibility because no contract had been drawn up, read the report.
The Health Ministry’s legal adviser was also not consulted on the process of preparing the appointment letter for PLSB, which the PAC report noted as having no experience or expertise in the procurement of medical equipment such as ventilators.
Additionally, the PAC found that PLSB, a subsidiary of pharmaceutical company Pharmaniaga Bhd, did not sign any contracts with the suppliers.
“Due to the extraordinary situation the world was facing at the time, emergency procurement was implemented to obtain vaccines, ventilators, personal protective equipment and other equipment to deal with the spread of the Covid-19 outbreak.
“Despite having no experience and expertise in the procurement of medical equipment such as ventilators, PLSB had been directed to make an advance payment for ventilators because of the existing relationship between the Health Ministry and PLSB.
“The absence of a written agreement between the Health Ministry and PLSB caused no party to be able to take responsibility for the failure of 104 units of ventilators to function.
“Due to the uncertainty of PLSB’s role in this matter, legal action could not be taken,” read the report on PAC’s investigation on expired vaccines, defective ventilators and excess PPE under the Health Ministry published on the official Parliament website yesterday.
The PAC noted that on March 25, 2020, the Cabinet was informed about the need for 800 ventilators, whereby 300 units were for replacement of existing equipment and the remaining 500 was to fulfil additional needs.
Following that, the Health Ministry’s top management had asked for assistance from PLSB to help the ministry get ventilators from manufacturing countries, especially China.
According to the PAC’s findings, this was the first time that the Health Ministry had got that particular brand of ventilators from China, a decision that was made due to the insufficient number of ventilators in Malaysia.
In line with the approval from the Finance Ministry, the Health Ministry approved an advance payment of RM30mil to PLSB to procure 500 ventilators, with the balance to be paid after the supply had been received.
Of this total, 136 ventilators were supplied to health facilities under the Health Ministry between April 1, 2020 and May 19, 2020.
However, after the ventilators arrived, they did not pass the testing and commissioning (T&C) procedure, although prior checks on the specifications had been conducted by Health Ministry experts based on the product brochures obtained beforehand.
The T&C of the ventilators found that only 28 were usable, 93 were unusable, and 15 were able to be returned to the overseas manufacturer for replacements, said the report.
From the 15 units that were replaced, only four units could be eventually used, meaning 104 of the 136 ventilators procured ended up being unusable.
“The issue with all the ventilators was that the ventilator plugs differed from the plugs used in Malaysia. The ventilators could only be turned on after the plug points were upgraded.
“However, each ventilator (also) had different problems in terms of hardware, accessories and software,” said the PAC.
It also said it found a discrepancy of information between the Health Ministry and PLSB on the existence of warranty for the 136 ventilators.
PLSB informed the PAC that all purchase order and price quotation documents indicated that the warranty was between the government and the supplier.
“PLSB only acted to manage the ventilator delivery to Health Ministry facilities and help the ministry contact the manufacturers to get warranties for ventilators that could not be used.
“The Health Ministry, meanwhile, said that there was no warranty upon purchase of the ventilator by PLSB, and warranty was only given by PLSB for the upgraded ventilators in a meeting on Sept 1, 2020,” said the PAC.
In its recommendations, the PAC said the Health Ministry must immediately check the warranty status of all 136 ventilators and ensure that appropriate action is taken against the party responsible.
The PAC also said that taking into account all the experiences, the Controlling Officer must ensure that public interest is always preserved even during emergency procurement, and that although faced with an emergency, documentation must be done with due diligence.
