KATHMANDU, April 18: Under the Ministry of Health and Population, the Department of Health Services has entered into a contract for the purchase of iron pills for pregnant women, causing a huge loss to the state. When the health minister was not appointed, the department entered into an agreement with JS Medical Pharma, the official seller of NovaGenetica Company, for the purchase of iron pills worth Rs 200 million, causing a loss of Rs 110 million to the state.
Head of the supply branch under the management division of the Department of Health Services Surendra Chaurasiya said that after completing the process, he signed the contract for the purchase of iron pills. “I fail to recall the exact date, but an agreement has been reached for the purchase of Iron pills in the first week of March. The iron pills should be supplied to the iron pill department or to the office designated by the department by mid-July,” he said.
After the Ministry of Finance allocated Rs 200 million for the purchase of iron pills in the last week of February, the department entered into a purchase agreement with that company. After the government allocated a budget of Rs 200 million for the purchase of iron pills, the department called for tenders on September 14, 2022. At the time of inviting the tender, the criteria were made such that only two or three companies would be accepted. According to the same standard, the purchase price of iron pills is 85 paisa per pill, according to Department sources.
Government preparing to purchase iron pills that cost 40 paisa...
After the news that the contract was going to be a huge financial burden on the state, the then Health Minister Padam Giri expressed concern and instructed not to sign the contract immediately and to purchase only after adjusting the market price. But after he resigned as the health minister, the purchase agreement was signed in the first week of March.
According to the department, the family welfare division of the Department made the standards under the guidance of the ministers and some employees who were in the government before November 20. As soon as the Ministry of Finance sent a budget of Rs 200 million, the Ministry of Health sent a letter to the provincial and local governments on September 30 asking them not to purchase iron pills. And the Ministry of Finance wrote a letter to the local governments asking them not to buy iron pills. After that, the Ministry of Federal Affairs also sent a letter of the same type, and the department opened the tenders to be submitted by October 31 and decided to allow the supply to the official seller of the company called NovaGenetica, which had submitted the lowest price.
Under the Ministry of Health, the Department of Health Services has entered into a purchase agreement with the official seller of Iron Pill NovaGenetica, which is available in the market for 40 to 50 paise per pill, at a price of 85 paisa per pill. The news about this was published for the first time on January 22 in Republica. But after the then health minister Padam Giri resigned as the health minister, the purchase agreement was signed in the first week of March.
Before inviting the tenders, the department had ordered the publication of the rates of iron pill manufacturing companies. Some supplier companies even gave a discount. According to department sources, only three drug manufacturing companies had given the rates. But those companies that gave rates did not participate in the tender process. In the tender process, drug manufacturing company Curex offered 95 paisa, NovaGenetica offered 90 paisa, Gosaikunda suppliers offered Rs 1.30 and Raman suppliers offered Rs 1.15. Among them, the official seller of NovaGenetica, JS Medical Pharma, has signed an agreement at a rate of 85 paisa per pill.
According to sources of the department, there is also confusion about why the previous government proposed to purchase so many iron pills. The question has also been raised as to why an agreement was made to purchase 200 million iron pills even though no more than 100 to 120 million iron pills are needed in a year.
According to sources at the Department, there is also confusion about why the previous government proposed to purchase so many iron pills. The supply branch head, Dr Chaurasiya said, “Sources claim that the company with which the contract has been made will not be able to deliver the said amount of pills by the end of July as the company cannot produce 200 million iron pills in four months.
"Even if iron pills are produced from March, all the companies in Nepal have the capacity to produce only 8 to 100 million by the end of July," the source said, "But since it is a tender in this setting, production may have been started earlier." A complaint was also filed at the Commission for the Investigation of Abuse of Authority (CIAA) regarding the alleged corruption of more than 110 million rupees in the purchase of iron pills. "Since there is corruption involving millions of rupees in Iron Pills, it should be investigated and a rebidding should be done, accepting the company that wants to supply the iron pills at a cheaper rate," it is mentioned in the complaint.
