PPDA cautions ministry on procurement
To save a dire dialysis situation at Kamuzu Central Hospital, the Ministry of Health has opted to single source procurement of dialysis services for the facility contrary to advice from the Public Procurement and Disposal of Assets (PPDA).
In a letter dated February 1, 2021, PPDA advised the ministry to extend expired service contracts with previous dialysis service providers for both KCH and Queen Elizabeth Central Hospital (QECH) and have a fresh open tender within six months to find a new supplier.
But a source privy to the discussions between PPDA and the ministry told The Nation the ministry is pressurising PPDA to have them to single-source services at KCH—a position PPDA is not comfortable with.
Yesterday, according to the source, a meeting was convened between PPDA and the ministry where the latter pushed for the single source proposal. But PPDA has set conditions if it is allow the ministry to single source services:
“PPDA has asked ministry of health to provide justification on why it has opted for single-sourcing as opposed to open tender and that it should also furnish them with documentation on the contract with the service provider at KCH including an explanation on why a call for open tender, in 2019, was cancelled.” said the source.
In the letter, PPDA wrote: “Kindly be advised that after careful consideration of the available information the Authority has determined that you are required to conduct a fresh open tendering procurement process of dialysis services.
“In this process the service provider is expected to supply, deliver, install, commission and maintain dialysis equipment and supply and deliver related consumables and accessories.”
In the letter, the ministry was instructed to complete procurement of new services within six months during which the two firms hired previously would continue providing services to the two health facilities.
Worldwide Pharmaceuticals Distributors services KCH and Fresenius Medical Care South Africa handles QECH. These are the only health facilities that provide dialysis services in Malawi.
Our source indicated that MoH wants Fresenius Medical Care South Africa to extend its services to KCH in a single-sourcing procurement method.
Section 37 (9) of the PPDA Act permits single-sourcing in emergency situations, where only one supplier has the capacity to meet the required procurement or where the procuring entity determines that additional good, work or services need to be procured from the same source for reasons of standardisation or effectiveness of the original procurement.
All single sourcing, by law, are supposed to be approved by PPDA director general and vetted by the Anti-Corruption Bureau.
While PPDA and the ministry have not responded to our questionnaires, our source indicated PPDA is currently waiting for documentation and justification from MoH on why it wants to single source, which is yet to be made available to the procurement authority.
There has been complaints regarding services at the KCH Dialysis Unit where out of 20 available dialysis machines available, only seven are fully functional, a situation that puts patients lives at risk, according to Kidney Foundation chairperson Frank Mwale.
He said says as of 2017 there were 68 patients dependent on KCH dialysis machines but the number has reduced to 36 after others succumbed to kidney failure for lack of support at the referral hospital.
Presidential Advisor on NGOs Martha Kwataine said the complaints raised by the foundation are seriously being looked into.
