Dr Chilufya explains purchase of 50 ambulances at US$11.5 M
By Staff Reporter
Health minister Dr Chitalu Chilufya says the 50 procured ambulances from Savenda Limited will cost government a grand total of US$11, 520, 355, inclusive necessary auxiliary services.
Dr Chilufya saidin parliament yesterday that the government was not aware that the same type of ambulances could be procured from Toyota Zambia at the cost of US$74, 000 each as the company did not participate in the tender process.
Responding to Kabompo UPND member of parliament Ambrose Lufuma who wanted to find out why the government was about to procure ambulances at an exorbitant price of US$288, 000 each, and whether the government was aware that the same type of ambulances could be procured from Toyota Zambia at a cost of US$74, 000 each and if so, whether the procurement process would be halted to save taxpayers money, Dr Chilufya highlighted salient points on the procurement.
“Government is not about to procure 50 ambulances at an exorbitant price of US$288, 000 each. The House may wish to note that in September 2015, government, through the Ministry of Health, entered into a contract with Savenda Limited to supply and deliver purpose-built ambulances for mobile and emergency health services, train health workers and support maintenance for the ambulances,|” Dr Chilufya told Parliament on Tuesday.
“These services were targeted at maternity, sudden non-communicable diseases such as cardiac as well as trauma arising from road traffic accidents and other sudden catastrophic medical and surgical conditions. The total cost is US$11, 520, 355 broken down as follows: (i). to supply and deliver 50 purpose-built Mercedes Benz high-roofed, equipment-mounted ambulances with modernised emergency and mobile medical equipment, 50 at a unit price of US$143, 110, bringing the price to US$7, 155, 500 (ii) Five year service and provision of service parts for ambulances, inclusive of both mobile platform and the medical equipment at US$3, 649, 305 (iii). Training of 20mechanics, 50 drivers and 100 medical staff at a cost of US$715, 550 and the grand total was US$11, 520, 355.”
He told the House that in March, 2015, an open international competitive tender was floated which attracted 13 responses and that the due process was followed after the bids were opened.
“Upon completion of the due process, the submission was made as prescribed by the law, to the Zambia Public Procurement Authority for approval. After this lengthy and due process, Savenda Limited was awarded the contract to supply the total package at the cost of US$11, 520, 355. It is important to mention that Toyota Zambia did not participate in this tender,” he disclosed.
“As stated earlier, this was an international competitive tender with very clear specifications in which 13 companies participated, of which Toyota Zambia was not one of them, and government is not aware that the same ambulances, including other services which were included in the specifications, are available at Toyota Zambia at that quoted price of US$74, 000.”
Dr Chilufya further noted that the procurement process could not be halted at this stage as the contract was entered into in 2015 and that the government had made payment towards the procurement as follows.
“Initial 10 per cent in 2015 followed by a further 15 per cent of the cost in 2016. Subsequent payments will be made as resources are made available and in the meantime, preparation and the various … required on the units have commenced and they are all still overseas. At an appropriate time, government will send a technical team to perform pre-ship assessment to assure value for money of the final product. The Ministry of Health remains committed to providing effective and high quality health services and looks forward to improving its mobile and emergency health services to the Zambian people because every life counts,” Dr Chilufya said.
When asked by Gwembe UPND member of parliamentMalungo Chisangano how the ambulances would be distributed to hospitals, Dr Chilufya responded that “the distribution will be determined at the time when vehicles will be in.”
“But we are aware that in Munyumbwe (in Gwembe)where there is a new facility that government has built, there is need for us to improve transportation and so, certainly the hospital in Munyumbwe will have an ambulance to serve that whole area,” he said.
Leader of the opposition and Monze central UPND member of parliament Jack Mwiimbu asked the minister what motivated the selection of Savenda Limited which was “one of the companies that is regularly cited in the Auditor General’s report “pertaining to failures to oblige to conditionalities of tendering.”
In response, Dr Chilufya explained that any business firm was free to participate in a tender.
“I just like to respond by saying [that] this tender was advertised and people participated according to their strengths. Mr Speaker, there is also [a] provision in the procurement law to get manufacturer’s authorisation to participate in a tender. So, it is important that we know that any business entity is at liberty to participate in a tender and if they are not the actual manufacturers, they must include, within the tender document, manufacturer’s authorisation. As a matter of fact, before the award is given in some tenders it is written ‘subject to some inspection of the manufacturer that is cited. So, I just want to console the Honourable member of parliament that the provision of the tender was such that manufacturer’s authorisation could suffice. I may not be privy to the specific issues that Savenda may have been cited for. Given time, I would investigate and come up with that,” he explained.
Meanwhile, Dr Chilufya told the House that he did not know the owners of Savenda Limited.
“Mr Speaker, I’ll offer a lift to my colleague we go to PACRA (Patents and Companies Registration Agency) to find the owners of Savenda. Mr Speaker, I’m not aware or I’m not privy to that information [but] if that information is required, I will research with PACRA and the relevant bodies to find out the owners of Savenda,” said Dr Chilufya in response to a question by Kalomo central UPND member of parliament Harry Kamboni.
