Non- citizen companies get lion’s share of MoH procurement

Goods worth over P10m open to both, none- citizen owned enterprises Over 66% used on non- citizen owned companies at Sir Ketumile - Lelatisitswe

The Ministry of Health has procured goods worth over P714 million since the implementation of the new Public Procurement Act of 2021 was introduced.

Sadly, non- Batswana companies enjoyed the biggest stake in some areas like Sir Ketumile Teaching Hospital.

Types of tenders awarded are CEE ( 100 percent citizen Owned suppliers) P400, 024, 000. 17 with goods procured being PPE - masks, gowns, gloves, EDD ( Local Manufacturers) at P83, 843, 057. 04, Medicines ( mostly ARV), Spirit 96 percent, Local – Non citizen P214, 263, 256. 91 Laboratory re- agents and x- ray films, Biomedical worth P698, 130, 314. 12.

Procurement for Sir Ketumile Masire are as follow: CEE ( 100 percent citizen owned suppliers) at P123, 487,996.5 being purchases for Servers, radiotherapy equipment. And for Local – Non citizen P41, 597, 608. 98 for IPMS Systems, supply of radiotherapy systems.

This was revealed by Assistant Minister of Health and Wellness, Setlhomo Lelatisitswe in Parliament when answering a question by Member of Parliament for Kanye North, Tlhapelo Letsholo.

Lelatisitswe said that in cases where the Health Ministry has procured from non- citizen companies, there would be no citizen owned companies that manufacture or supply the goods.

He explained that some companies are either distributors, agents or manufacturers. He further revealed that the proportion of the supplies that went to Sir Ketumile Masire Teaching Hospital is as follows, 24 percent for Personal Protective Equipment ( PPE), five percent for Medicines and 96 percent for Spirits while 12.9 percent is for Bio- medical equipment, reagents, and x- ray films.

“Over and above this, 66.31 percent was used on non- citizen owned companies where equipment needed was not available within the country”.

He added that government directed through Statutory Instrument No. 23 of 2020 that all works, supplies and services up to the sum of P10 million issued by government, state owned enterprises or any entities falling within Section 8 of the Act shall be reserved for 100 percent citizen owned, small, medium and micro enterprises with a maximum annual turnover not exceeding P10million.

“My Ministry is implementing this instrument except for cases where the citizen companies are not readily able to supply,” he said, further noting that Tenders above P10million are open to both citizen and non- citizen owned enterprises.

The Ministry strives to give priority to local manufacturers and distributors to promote empowerment.

The use of foreign companies will mainly be to mitigate an urgent situation that is unavailable locally for the uninterrupted service and product delivery to serve the end user. In addition, all microprocurements are reserved 100 percent for youth, women and people with disabilities.

Lelatisitswe added that some services cannot be sourced from 100 percent citizen as they have not ventured in them yet, hence the need to engage non- citizen manufacturers to provide the ministry with services/ supplies duly needed by end users. These services and/ or supplies are very few in number and such requests are few and far between.

Lelatisitswe said a handful of tenders are awarded to non- citizens including Infant Formula the main tender, ( MTC/ MOHW/ HSM/ SUP/ 0033/ 16062021) was unsuccessful due to complaints received that delayed the procurement process, ultimately affecting the outcome of the tender, which thereafter led to its expiry.

Further that an interim measure was to source Infant formula from manufacturers based in South Africa while running the main tender again, purely reserved for 100 percent citizens, with the hope that it becomes fruitful. The manufactures are the same that most, if not all local suppliers, source their infant formula from.

While MEDITECH SAMedical Information Technology SA ( Pty) Ltd developed the Integrated Patient Management System ( IPMS) and therefore the company is the sole agent assigned by the parent company MEDITECH USA for the provision of maintenance and support services of the System in South Africa, Africa and the Middle East for 28 Hospitals, Clinics and Labs.