Ministry of Public Security investigates 89 cases of overpriced procurement bid packages for COVID-19 control

January 18, 2023 - 17:38
According to the Government Inspectorate, the price of 20 types of medical equipment that contractors supplied to 31 hospitals under the city’s health department went through multiple intermediaries, which resulted in a significant price difference.
Investigations revealed that several bid packages for COVID-19 prevention enjoy much higher price points than the initial prices. — VNA/VNS Photo

HÀ NỘI — The Ministry of Public Security (MPS) is investigating 89 cases of overpriced procurement bid packages relating to COVID-19 control in Hà Nội.

According to the Government Inspectorate, which conducted investigations into the medical procurement from January 1, 2020, to December 31, 2021, the price of 20 types of medical equipment that contractors supplied to 31 hospitals under the city’s health department went through multiple intermediaries, which resulted in a significant price difference.

This meant the winning contractors enjoyed much higher price points than imported ones.

In particular, 41 of these packages had a total value of VNĐ66 billion (US$2.8 million), while the imported price was VNĐ31 billion ($1.3 million).

The other 40 packages won bids at over VNĐ37 billion ($1.5 million), a VNĐ20 billion ($853,000) difference compared to the imported.

The rest were priced at over VNĐ30 billion, also VNĐ20 billion higher than the imported price.

Meanwhile, medical supplies, medicals, products and test kits were procured at VNĐ73 billion ($3.1 million). The price for imported or domestically produced goods of the same types was over VNĐ37 billion ($1.6 million).

Six bid packages provided to Hà Nội Centre or Disease Control (CDC) by 3TK JSC were priced at over VNĐ40 billion ($1.7 million), up to a five-fold increase on imported prices.

Phương Đông Medical Equipment Co Ltd also imported real-time PCR test kits and won the bid at 2.5 times the initial price. In December 2021, the company reduced prices and ran promotions, but the difference was still two times the imported price.

Tài Lộc Technology Service and Trading Co Ltd won the bid to provide seven digital mobile X-ray machines at VNĐ30.4 billion ($1.3 million) in total, while the imported price was VNĐ10.5 billion ($448,000).

Following the contractor’s price reduction, the difference was still 2.2 times the initial price.

The MPS will look into cases where 34 bid packages that Tùng Bách Development Investment Co Ltd won resulted in price differences of 1.14 to 1.84 times the imported prices.

Other packages under investigation include seven of Trần Lê Trading and Production Co Ltd and 41 others by Star Med JSC, Phương Đông Medical Equipment Co Ltd and 3TK JSC.

The Inspectorate has asked Hà Nội to issue directions to clarify the responsibilities and strictly handle these violations.

Public security units will also look into the bidding packages for medical supplies, equipment and test kits. — VNS

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