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Simbao clears contradictions on Philips deal

Simbao clears contradictions on Philips deal
By Patson Chilemba
Thu 22 July 2010, 04:01 CAT

HEALTH minister Kape-mbwa Simbao yesterday said he does not understand how President Rupiah Banda should be the one to answer for the contracts under the Ministry of Health.

Addressing the press following Philips’ revelation that they had signed a five-year multi-million Euro contract with the Ministry of Health, Simbao said the ministry earlier this year signed a nine million Euro deal but it had nothing to do with President Banda.

He said he had never been called at any time by the President on this issue.

“If anywhere, somewhere the President is talking to someone else who is not me then I haven’t yet heard about it. I don’t know how really the President must be the person to answer for the things for the Ministry of Health. Let’s exonerate innocent people,” Simbao said.

Simbao apologised if the government had not properly explained the issue because people had continued commenting on it.

He explained that the contract to renew equipment in hospitals took effect in 2002, where both the Zambian and Netherlands governments were to contribute 50 per cent of the 25 million Euros that was agreed on.

Simbao said after the contract ended in 2009, the government was left to choose whether or not to continue with Philips.

He said the first letter was written to the Zambia Public Procurement Authority (ZPPA) to request for the renewal of the Philips equipment maintenance contract between Philips and Ministry of Health.

Simbao said ZPPA responded in writing to then permanent secretary last December.

“It says ‘The central tender committee at a meeting held on 31st December, 2009 granted you for a waiver from open bidding to direct bid Philips Medical Systems Netherlands BV for the maintenance and repair of medical equipment’,” Simbao said.

“‘The tender committee also granted you authority to award the contract for the maintenance and repair of medical equipment to Philips Medical Systems Netherlands BV at a cost of 9.792 million Euros for a period of five years’.”

Simbao said the Ministry of Justice was also written to and they responded through then solicitor general Abyud Shonga.

He said Shonga stated that it would be imprudent for the state to enter into an agreement which had no escape clause.

Simbao said the Ministry of Health wrote back to the justice ministry, saying Philips had agreed to effect the recommended adjustments, with the exception of clause 22 on the termination.

He said the clause stated that either party could terminate the contract subject to giving a written notice of 45 days.

“However, Philips has not accepted this clause, indicating that the proposal of an unjustified termination with a notice of 45 days from either side is not seen as appropriate for the service contract, with its associated costs. Only termination linked to breach of the contract or insolvency should be considered,” Simbao narrated.

He said as a result of the new contract entered into with Philips, the first payment of 956,000 Euros was made on June 1, 2010.

Asked on assertions that President Banda was connected to Philips, Simbao said he and the Ministry of Health had no idea of the matter.

He said everything relating to the contract had been done officially.

“Now if on the other side there is some relationship, we do not know. So I can stand here that the business we’ve done here has been purely on business lines. It has nothing to do with who Philips knows or Philips do not know. It has never been like that,” Simbao said. “To start with, when you look at this contract here, it was signed by Dr former health permanent secretary Kashiwa Bulaya. He is the one who signed this contract with Philips. Then Mr Banda was nowhere in the picture. That time Mr Banda if you want to know, we knew him as a UNIP member who we didn’t even want to have anything to do with us. And that is the time it was signed by D Bulaya.”

Simbao also said The Post headlines might appear negative but the contents of the stories were very accurate.

On Tuesday, Philips communications officer Radhika Choksey disclosed that the company had signed a new five-year multi-million euro contract with the Ministry of Health.

Responding to a press query following Simbao’s earlier statement that there was no existing contract between the Zambian government and Philips for the upgrade and maintenance of hospital equipment in 71 districts across the country, Choksey confirmed that the contract was signed in March this year.

Last week, Kafulafuta MMD member of parliament George Mpombo challenged the government to explain the circumstances under which Phillips was awarded the five-year contract to upgrade and maintain hospital equipment in 71 districts countrywide.

Later, a highly placed source told The Post that President Banda’s involvement in the Philips deal was not surprising because he had been known to represent that company before he became President.

But Simbao on Sunday last week said there was no existing contract between the Zambian government and Philips.

Health permanent secretary Dr Peter Mwaba explained that there had been no recent contract awarded to Philips after the one signed in 2002 in which Philips was contracted to maintain medical equipment supplied by the Netherlands government.

Labels: KAPEMBWA SIMBAO

posted by MrK @ 12:01 PM