SCANDAL AFTER SCANDAL UNDER HH: $65m DOLLARS OF MEDICINES BOUGHT IN 2023 FROM EFYPT IN A STRANGE DUBIOUS DEAL GETS ROTTEN AT TRANSPORTERS YARD WHILST 90% OF USAID DONATED MEDICINES STOLEN UNDER NEW DAWN
SCANDAL AFTER SCANDAL UNDER HH: $65m DOLLARS OF MEDICINES BOUGHT IN 2023 FROM EFYPT IN A STRANGE DUBIOUS DEAL GETS ROTTEN AT TRANSPORTERS YARD WHILST 90% OF USAID DONATED MEDICINES STOLEN UNDER NEW DAWN
Government says it has instituted investigations into the rotting of 61 containers of imported medicines that were marooned at J and J- Depot in Lusaka since last year.
Meanwhile the USAID has made damning findings that 90% of the medicines donated by America to Zambia haven’t reached hospitals but been stolen and are on sale at private pharmacies around the country.
Health Minister SILVIA MASEBO however says the containers of medicine in question that were marooned for nearly a year are now finally being offloaded at the Zambia Medicines and Medical Supplies Agency – ZAMMSA Warehouses.
Ms. MASEBO said this in a Ministerial Statement in the National Assembly in LUSAKA today.
The Health Minister said the 61 containers of medicine are part of the 74 containers imported in October 2023. She expressed displeasure that while government is doing everything possible to increase the availability of medicines, unscrupulous individuals are frustrating such efforts.
Zambia Medicines and Medical Supply (ZAMMSA) procured IV fluids and surgical equipment last year 2023 worth around US$65 million in a Dubious deal where treasury sent monies without a tender process to Egypt to a company that also didn’t issue any tenders but started buying unregulated drugs on the Egyptian market which are not WHO certified.
However when the uncertified goods got to the borders for clearance the new dawn government failed to provide money for clearance of the medicines on time which led to the goods being marooned under hash weather conditions on top of the fact that they were not WHO certified.
The trucks later proceeded to ZAMMSA anticipating to offload the drugs only to be told that they was no space to store the drugs and only 9 trucks out of 70 trucks where offloaded. The transportation company was forced to move trucks again out of ZAMMSA and find a place to wait for call to offload which has been pending since 2023
MORE CORRUPTION ALLEGATIONS
Masebo is alleged to have forced a bogus company, the Egyptian Group for Pharmaceutical and Cosmetics Producers (EGYCOPP), to be awarded a $65million single sourcing deal to supply medicines and medical supplies to Zambia.
The $65million pharmaceutical contract is proving controversial and has not been subjected to any open and competitive tender bidding process. Those close to the deal have disclosed that Masebo pushed hard for EGYCOPP to get this $65m contract to supply the government with medicines.
In its information given to Ministry of Health, EGYCOPP states that it had plans to open a branch in Zambia in 2020, as part of the vision to double Egyptian exports in the coming years. But the Patent and Company Registration Agency (PACRA) records show that although EGYCOPP Zambia was actually registered on 26 June 2020, it has not been active in Zambia.
Its business address is listed in Roan Road, Plot No. 17, Kabulonga – Lusaka. But a visit to the address revealed another company operates there. The shareholders are Egyptian, Sudanese and Zambian and the two companies are led by Musonda Chibwe, Salah Ahmed El Hagmana and Magued Georges Amin Youssef, Sudanese and Egyptians, respectively.
Despite murky details, Masebo proceeded to award them the pharmaceutical deal through ZMMSA. Zambia Medicines and Medical Supplies Agency (ZMMSA) Board Chairperson, Dr.Anna Chifungula is reported to have threatened to resign over this corrupt deal. She directed that an open tender should be advertised.
$100M HOSPITAL DEAL WITH TFM HOLDINGS
Promoters of this deal claim to have hosted Masebo in Sandton. Irrefutable evidence has emerged that Ms. Masebo travelled to South Africa with Mr. Mbachi Nkwazi ( Powertools Buses) and the duo were hosted by TFM Holdings Chairman, Mcebisi Mlonzi.
Renowned South African businessman, Mlonzi established a Zambian local company, Ritam Holdings. In July, Ritam Holdings chairman that “as a South African diversified holdings company, we found it befitting to work in partnership with Zambia, given our southern African ties to strive to become Africa’s leading diversified industrial group, applying innovation, technology and resources to enhance the sustainability and development of human life.”.
Ritam Ecomed, a subsidiary of Ritam Holdings,was designed to supply hospital equipment to government hospitals that would be built by TFM Holdings. TFM Holdings were recently awarded a $100million to build new hospitals.
US$100 million project to build more hospitals across the country started as a project to build isolation Covid-19 hospitals in 2020. Under the New Dawn, the project scope was redefined and awarded to TFM Holdings.
The contract was awarded to TFM, a South African-registered company in a non-competitive bid. This is after Masebo’s numerous visits to 334 Independence Road, offices for TFM Holdings and RITAM HOLDINGS and her visit to South Africa.
Mlonzi released a letter to show that Masebo solicited for facilitation fees and a luxury vehicle. Mlonzi also wrote to President Hakainde Hichilema alerting him about the entire saga and details of alleged funds given to her.
President Hichilema instead of firing Masebo sacrificed the Permanent Secretary in charge of Administration George Magwende. The $100m hospital deal has since been cancelled but government may be liable to pay over $40million.