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Drax contracts cancelled

Government has ordered the National Pharmaceutical Company (NatPharm) to cancel all contracts for the supply and delivery of medicines and surgical sundries by Drax Consulting SAGL.

Dr Gibson Mhlanga
Dr Gibson Mhlanga

In a letter dated 5 June 2020, addressed to NatPharm managing director Mrs Flora Sifeku, acting Permanent Secretary in the Ministry of Health and Child Care, Dr Gibson Mhlanga advised that the cancellation must be done with immediate effect.

He said NatPharm must, by this Friday, be able to prove that the cancellation had been effected accordingly.

“You are being directed to cancel all contracts that you had with Drax SAGL with immediate effect. Please be advised that this process needs to be completed by latest Friday 12th June 2020 and all documentation showing cancellation of the same to be submitted in my office by then. Please treat this issue with the urgency that it requires,” wrote Dr Mhlanga.

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Contacted for comment, Dr Mhlanga confirmed the latest position adding that he was following instructions from Treasury.

He could, however, not be drawn into providing more details.

Mrs Sifeku also confirmed having received the letter, but could not comment.

Represented by Mr Delish Nguwaya in Zimbabwe, Drax Sagl entered into an agreement with Government for the supply and delivery of medicines and consumables worth US$20 million.

The drugs started coming into the country at the beginning of the year in batches.

Sometime this year, Drax Sagl was also awarded a tender to provide Covid-19 medicines and was subsequently given preferential treatment for the release of its Covid-19 emergency medical supplies that were stuck at Robert Gabriel Mugabe International Airport.

There was a public outcry after it emerged that the company was overpricing its Covid-19 supplies. The Herald