Motsoaledi defends R15bn ARV tender process

HEALTH Minister Aaron Motsoaledi has dismissed a suggestion that there were irregularities when the R15 billion antiretroviral tender was awarded.

Motsoaledi said the department applied a comprehensive due diligence and evaluation process in line with procurement prescripts, including the Public Finance Management Act, the Preferential Procurement Framework Act, the Special Requirements and Conditions of Contract and the bid specifications issued for the tender.

“Accordingly, the department is not aware of any procurement failures or material irregularities arising from the evaluation and award process, which was conducted in accordance with the applicable legal and regulatory framework,” he said.

Motsoaledi was responding to parliamentary questions from EFF MP Naledi Chirwa-Mpungose, who raised widespread public concern regarding alleged discrepancies, irregularities and possible procurement failures surrounding the R15 billion antiretroviral tender process.

Chirwa-Mpungose had enquired about the due diligence that was implemented by Motsoaledi’s department during the process of awarding the specified tender and the names of companies that were awarded contracts.

In response, Motsoaledi said pharmaceutical tenders comprise multiple line items covering different medicines, formulations and pack sizes.

Motsoaledi said in the ARV tender, the first-line Tenofovir/Lamivudine/ Dolutegravir (TLD) tablets constituted the highest-volume products and were subject to particularly strong competition, with multiple bidders submitting offers. He said while two companies Hetero Drugs SA and Cipla Medpro Manufacturing were not awarded contracts for TLD following the evaluation process, both companies were successful in respect of other line items for which they submitted bids.

He said the tender was awarded to 11 successful bidders in accordance with the evaluation outcomes and applicable procurement processes.

Five months ago, Motsoaledi challenged the Health Portfolio Committee to take a resolution that would recommend the Special Investigating Unit (SIU) to probe the ARV tender.

This was after Chirwa-Mpungose said there was another corruption ploy involved in the awarding of the tender.

“We want the SIU to come in and investigate with so many red flags and these guys got the tender,” she said in reference to the awarding of the tender to Barrs Pharmaceuticals Industries and Innovata Pharmaceuticals – both were placed under business rescue in December last year.

Chirwa-Mpungose said at the time that the two companies, owned by Avacare Health subsidiaries, were awarded the tender despite not having financial capacity.

CFO Phashwa Mamogale said all bidding requirements were met by the companies when the tender was awarded. Mamogale said when the companies were selected, the department was not aware of the financial difficulties the companies would face.