PPADB, Ministry justify P238m direct appointment tender
There was no other procurement method to use at the time - PPADB The tender is an extension of an existing one - Health Ministry Ministry preparing similar tender for competitive bidding
The Ministry of Health and Wellness, and the Public Procurement and Asset Disposal Board ( PPADB) have quelled speculations of sabotage in respect to local contractors that were directly appointed in a tender for medical supplies.
The tender being MINISTRY OF HEALTH AND WELLNESS TENDER NO: 5/ 1/ 7- 2 FOR PROCUREMENT OF SURGICAL AND MEDICAL SUPPLIES – DRESSINGS THREE ( 3) PRODUCTS FOR A PERIOD OF SIX ( 6) MONTHS worth P238 million was approved for direct appointment by PPADB in December last year.
Local contractors have accused the Procuring Entity ( PE) being Central Medical Stores ( CMS) which falls under the Ministry and PPADB of favouring the companies that benefited in the tender at the expense of others who are also in the CMS database.
Last year the PPADB approved the direct appointment of Afmed ( Pty) Ltd, Belline Entreprises ( Pty) Ltd T/ A Top Med Manufacturers, Eagle Medical Industries ( Pty) Ltd, KTN Tech Design ( Pty) Ltd, Lessek Group ( Pty) Ltd and Monteco Solutions ( Pty) Ltd.
There are fears that the six companies which won a similar tender in the past might be favoured once again in yet another similar tender expected soon after the lapse of the current six months period.
The current tender for the period of six months cost P238, 219, 882. 12. Direct appointments caused much uproar during the State of Emergency ( SoE) when certain companies benefited excessively from overpriced direct appointments.
With SoE over, the PPADB is still accused of continuing to approve large direct appointments with inflated pricing while denying other 100 percent citizen owned companies a share in those opportunities.
PPADB has confirmed to Botswana Guardian that the breakdown of the awards is: Afmed ( Pty) Ltd, P4,088.28; Belline Enterprises ( Pty) Ltd T/ A Top Med Manufacturers, P191,786,240.16; Eagle Medical Industries ( Pty) Ltd, P232,265.88; KTN Tech Design ( Pty) Ltd, P43, 388,342.88; Lessek Group ( Pty) Ltd, P2,146,687.92; and Monteco Solutions ( Pty) Ltd, P662, 256.
The largest share of the direct appointment was given to Belline Enterprises ( Pty) Ltd owned 100 percent by one Ashish Bhatia valued at P191, 786, 240.16.
PPADB has justified the direct appointment on the grounds that these suppliers were already familiar with the products and therefore justified under the circumstances to appoint them for the short period requested.
PPADB explained that on the 15th February 2018, the Board awarded a framework contract for the supply of surgical and medical supplies – namely Dressings 3 commodities by CMS to best evaluated local manufacturers ( benefitting through Presidential Directive on Economic Diversification Drive of 2010, were awarded 80 percent) and second- best local manufacturers or distributors ( awarded the 20 percent balance).
PPADB Public Relations and Education Manager Charles Keikotlhae stated that this was an Open Domestic tender which closed on the 19th of September 2017. He said 34 bids were received by the closing date and time.
“Out of the 34 bidders that responded to the tender, six were awarded the tender for three years.
Towards the end of the three years, at its meeting of the 25th March 2021, the Board approved a request by CMS for Direct Appointment of the six companies for a period of six months to supply the same products.
“The direct appointment approval was based on that there was insufficient time for any other procurement method to be used as the required products were meant to address Covid- 19 health related issues.
“The Procuring Entity was also in the process of formulating/ preparing all its tender documents ( ITTs) including the Dressings ITTs to accommodate changes that have taken place in the market owing to Covid- 19 supply chain disruptions. The Board noted that the PE was in consultation with stakeholders to incorporate new developments and that ITTs will only be finalised following conclusion of the said engagements,” Keikotlhae said in response to Botswana Guardian’s enquiries.
He said five out of the six companies are 100 percent citizen owned, and one is noncitizen but locally registered and there were no joint venture entities that participated in the tender.
Keikotlhae explained that these are framework contracts therefore after signing them the PE will only procure the quantities they require for the six months at the rates approved by the Board. It does not mean that the Procuring Entity has an obligation to procure all items to the total value of the award.
Dr. Christopher Nyanga from the Health Ministry, on the other side said since this was a short tender, they extended an existing one. While preparations for a new tender were being finalised, the tender was awarded through direct appointment of the companies that were already supplying the said material.
“This was an extension of an existing tender. Therefore, it was conducted through direct appointment of the companies which were already supplying the said materials in the initial tender.
“The next tender is the one which will be conducted through competitive bidding, as happened with this one at the beginning,” said Dr. Nyanga, who indicated that the Ministry is satisfied with the pricing by the six companies given current rates and issues of medical supplies availability in Botswana and globally.