Health ministry awards bids against law

Published On: May 9, 2018 07:45 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, May 9: The Logistics Management Division (LMD) of the Department of Public Health Services (DoPHS) under the Ministry of Health and Population (MoPH) has been found to have finalized procurement processes against the law.

According to the Public Procurement Act (2063BS), if the bid amounts proposed by all bidders exceed the estimated budget of the project, the bidding process should be cancelled and another bid should be called.

However, in the procurement process of 12 bidding packages by the LMD, the bidding was not cancelled even though the bid amounts proposed by all the bidders exceeded the estimated budget, according to the annual report of the Office of the Auditor General (OAG). “Instead, it [LMD] awarded the bid to a bidder by providing it an opportunity to decrease the proposed amount,” the report says, adding, “It’s against the law.” 

Among 12 procurement projects, four bids were rewarded to four contractors without giving any opportunity to other contractors to decrease the proposed amount as per the auction method, according to the OAG report.

The four bids called for in the current fiscal year are 10 pieces of X-Ray 100 M A, 10 pieces of X-Ray 300 M A, 35 pieces of Ultrasound Machines and Pulse Oxo Meter. 

X-Ray 100 M A’s estimated budget was Rs 6 million but Rs 6.4 million was proposed by a bidder. X-Ray 300 M A’s estimated budget was Rs 14 million but Rs 14.4 million was proposed by a bidder. Ultrasound Machine’s estimated budget was Rs 10.5 million but Rs 10.7 million was proposed by a bidder. Pulse Oxo Meter’s estimated budget was Rs 3.75 million but Rs 4 million was proposed by a bidder.

The bid for X-Ray 100 M A was awarded for Rs 5.8 million, that for X-Ray 300 MA for Rs 13.8 million, that for Ultrasound Machine for Rs Rs 10.3 million and the bid for Pulse Oxo Meter was awarded for Rs 3.6 million, according to the OAG annual report. “The authorities involved in setting double standards should be made accountable as per the law,” the report reads.

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