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UNOPS refutes financial irregularities in the procurement of oxygen plants during COVID-19 pandemic

KATHMANDU, June 4: The United Nations Office for Project Services (UNOPS) has refuted reports that a scam of millions of rupees took place in the country while purchasing oxygen generation plants during the COVID-19 pandemic.
By Republica

KATHMANDU, June 4: The United Nations Office for Project Services (UNOPS) has refuted reports that a scam of millions of rupees took place in the country while purchasing oxygen generation plants during the COVID-19 pandemic. 


Responding to a news report published in Republica, the UNOPS, which implemented the project,said that it  refutes any suggestions of malpractice and takes any allegations extremely seriously. The project was implemented in partnership with the Department of Health Services, Ministry of Health and Population, and funded by the World Bank.  


The UNOPS has clarified that technical specifications were prepared in consultation with biomedical experts and approved by our partners adhering to UNOPS procurement procedures. Contracts were reviewed and approved by an independent headquarters committee after the bidding process and have multiple layers of oversight. Additionally, all procurement and financial transactions conducted by UNOPS are subject to audits by the UN Board of Auditors and the Internal Audit and Investigation Group of UNOPS, utilizing both internal and external auditors. 


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"UNOPS has strict policies in place and any credible evidence of misconduct will be thoroughly investigated. To date, no such evidence has been presented to UNOPS. Specifications were well developed, reviewed independently, and companies paid correctly, at market-appropriate rates, through a competitive process and reviewed independently," the UNOPS said in a clarification regarding the procurement of oxygen plants during the COVID-19 pandemic.


The global demand for oxygen was extremely high at the height of the COVID-19 outbreak in 2021, especially in Nepal and supply chains were severely disrupted. UNOPS was requested to procure seven oxygen plants, provide infrastructure to house them, backup generators, operation and maintenance support, and procure and deliver 1,000 oxygen concentrators. "Despite the many challenges, UNOPS successfully sourced and delivered these items based on hospital needs.As of today, more than 456,000 people in Nepal have received the oxygen therapy service provided by this project," it said in the statement.


The costs of oxygen generation plants range from USD 15,000 for small mobile units to USD 500,000 for major hospitals depending on capacity, size, quality, time, maintenance period and infrastructure requirements.  UNOPS procured high-capacity “duplex” oxygen plants, which are two independent units capable of back-up in emergency and support for other hospitals. 


The  project saved more than USD 800,000 on initial estimates and, as per standard procedures, this amount is refunded to the Government of Nepal after acceptance of the final financial report, according to the UNOPS. 


UNOPS has 25 years of experience and since 2016, has delivered over $6.9 billion worth of health projects and programmes. In recent years in Nepal, UNOPS has successfully implemented projects worth approximately USD 110 million in alignment with the Government’s priorities, including the construction of 27 schools, 58 police buildings, support for 30,000 families in reconstructing and retrofitting houses and detailed earthquake damage survey of one million houses and geo-hazard assessments for 400 villages, it said further in the statement.

See more on: refuted_reports
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