KATHMANDU, April 1: Following widespread criticisms, the government on Wednesday scrapped the controversial COVID-19 emergency medical equipment procurement deal with Omni Business Corporate following widespread criticism.
General Director at the Department of Health Service Mahehdra Shrestha said the procurement contract with the Omni Group has been canceled since the company failed to bring equipment as per the agreement.
The government had awarded the procurement deal worth 1.25 billion to the group overnight. But the government faced widespread criticism after the medical equipment were bought from Guangzhou at a price four to seven times higher than the usual market price.
Shrestha admitted that the government had agreed to pay 20 percent higher the price than the usual price and added that the Group brought only 10 percent of the materials.
“The Group has neither given us their word to bring the rest of the materials even though the deadline is tomorrow,” he said.
“Therefore, I have scraped the purchase deal and forwarded process to blacklist the Group.”
According to Shrestha, the government is beginning a new process to purchase the equipment.