Kathmandu, Nepal, April 1, 2020: The government has on Wednesday decided to scrap the controversial procurement deal with Omni Group to bring medical equipment from China to contain the spreading novel coronavirus (COVID-19).
The government has not only decided to scrap the procurement deal with the controversial business form, Omni Group, but also seized Rs 50 million that the group had deposited as per the contract deal.
The reasons scarp the deal and seize the deposited amount for failing to import medical equipments from China within the stipulated timeframe as per the contract deal.
The deal signed between the government and Omni Group was dragged into controversy not only for failing to follow the fundamental procedure related to the public procurement act but also for quoting excessive high price and supplying of low standard health materials.
Director General (DG) at the Department of Health Service Mahendra Prasad Shrestha revealed the government’s decision to scrap the deal amid a press conference on Wednesday.
Earlier, DG Shrestha himself and other high ranking government officials had defended the deal even criticizing the media and other critics for raising questions against of the deal.
The government had awarded the controversial Omni Group to import masks, virus test kits, PPEs and other medical logistics from China to contain the spreading COVID-19. As per the deal, the Group should have import medical equipments worth of Rs 1.24 billion within a week in three installments after it signed the deal that has already elapsed.
The Group has brought its first consignment earlier this week, which covers only about 18 percent, but failed to import remaining materials as per the deal.
Reliable source at the Ministry of Health and Population, the officials involved in the deal would drag into investigation process for the controversial deal.