January 16th, 2013
AFC calls for independent investigation into single sourcing contracts.
Posted by bwest in Press Releases
Many years after the enactment of legislation requiring a procurement commission that Commission is yet to be appointed. Let us examine the implications of this in just one sector, health. For the past 12 years billions of dollars in drugs were being sourced through the New GPC without competitive bidding under what the Government referred to single sourcing. Many reports in the media pointed to prices paid by the Government many times the retail price for similar items and under sweet heart arrangements which conflict with normal commercial terms. In particular the entire annual purchase is paid for at the beginning of the year rather than on delivery. The Auditor General’s report repeatedly raises questions such as over-buying, non-delivery, expired drugs, dumping of damaged items all of which cost our taxpayer billions of dollars annually. Given the non-commercial terms with New GPC, the special relationship between the company and government officials past and present and failure of the Government to open this purchase to competitive bidding, it is necessary that a fraud investigation be carried out by an independent commission. At the very least, such an investigation would remove speculation and put at rest any perceived malfeasance. [END]
