Government has bowed down to intense pressure and ordered Natpham, a public pharmaceutical company to cancel the medical supplies deal with controversial contractor, Drax SAGL following a public outcry over inflated prices of personal protective equipment.
Drax SAGL is allegedly linked to the first family and circumstances over how it won the contract remains suspicious.
The deal was worth US 60 million.
In a letter directed to Natpham managing director, Flora Sifeku and copied to the Treasury secretary, the secretary in the Ministry of Health, Gibson Mhlanga ordered the cancellation of the contract.
“You are being directed to cancel ALL contracts that you had with Drax SAGL with immediate effect. Please be advised that this process needs to be completed by latest, Friday 12 June 2020 and with documentation showing cancellation of the same to be submitted in my office by then,” read the letter.
A fortnight ago, documents leaked showing the company was supplying government face masks at US 28 at a time the same product was selling at an average of US1 per unit on the local market.
The development sparked public uproar over the deal at a time public accounts accountability is already under spotlight in recent times following unearthing of various state procurement and tender awarding scandals.
Last week, Permanent secretary in the Ministry of Finance, George Guvamatanga addressing a parliamentary committee said government later did its own assessment of the prices and refuted the price structure Drax had sent forward.
But for a system that is already devoid of public trust, the fact that the ministry had already stamped the leaked letter with abnormally inflated prices leaves a lot to be desired, analysts have said.
