KATHMANDU, April 1: The government has scrapped a controversial procurement deal with Omni Group which was awarded to bring medical equipment from China to contain novel coronavirus, a senior government official said here.
Director General at the Department of Health Service Mahendra Prasad Shrestha told in a press conference today that the deal with Omni group was scrapped.
The Omni Group was awarded to import masks, virus test kits, PPEs and other medical logistics from China.
The government decided to terminate the deal with Omni Group after it failed to import medical equipment from China within the stipulated timeframe, DG Shrestha told reporters.
The contractor had pledged to bring medical equipment within a week in three installments after it signed the deal worth Rs 1.24 billion.
It is learnt that the Ministry of Health awarded the contract to the group without bidding.
The contractor brought its first consignment from China earlier this week.
"The group imported only 18% medical equipment so far. It failed to honor the commitment it made with the government," Shrestha said.
According to DG Shrestha, the group has now been blacklisted for failing to honor its commitments as per the agreement.
The government has also decided to seize Rs 50 million that the group deposited as per the contract deal.