The Central Government on Monday issued a statement thereby clarifying on the controversy around Rapid Anitbody tests and the over price paid on their procurement.
The government today cancelled the order for COVID-19 test kits which were being sold at an inflated price by the Indian distributor, Real Metabolics. Details of the over price emerged from a legal dispute between the distributor and the importer before the Delhi High Court. The government, through the Indian Council of Medical Research (ICMR) had ordered five lakh rapid antibody test kits from Chinese firm Guangzhou Wondfo on March 27. The test kits were bought by the importer, Matrix, for Rs 245 apiece from China. Yet, the distributors, Real Metabolics and Aark Pharmaceuticals, asked the government for Rs 600 for each kit.
Trouble begun when the Tamil Nadu government also procured the Chinese kits at Rs 600 a piece from the same importer, Matrix, through another distributor Shan Biotech.
The statement issued by the Government says, it is important to understand the background in which procurement decisions are made by the ICMR. Testing is most crucial weapon against COVID-19 and this requires procurement of kits and supplying them states. This procurement is being undertaken when globally there is huge demand for these test kits and various countries are applying their full might, monetary and diplomatic, to acquire them.
ICMR’s second attempt to procure these kits got adequate responses. Of these responses, taking sensitivity and specificity in mind, kits of two companies i.e. Biomedemics and Wondfo were identified for procurement. Both had requisite international clarifications.
For Wondfo, evaluation committee got 4 bids and the lowest bid of Rs. 600 was considered as L-1. Quotations received from direct procurement had following issues:-
- Quotation was Free on Board without any commitment on logistics issues.
- The quotation was on the basis of 100% direct advance without any guarantees.
- There was no commitment on timelines.
- Rates were communicated in US dollars without any clause for accounting for fluctuations in prices.
Hence, it was decided to go Wondfo’s exclusive distributor for India for the kit who quoted an all inclusive price for FOB (logistics) without any clause for advance.
It needs to be also remembered that this was the first ever effort by any Indian agency to procure such kits and the rate quoted by the bidders was the only reference point.
After receipt of some supplies, ICMR has again conducted quality checks on these kits in field conditions. Based on scientific assessment of their performance, the order in question (Wondfo) along with order in respect of another make found under-performing have been cancelled.
It needs to be stressed that ICMR has not made any payment whatsoever in respect of these supplies. Because of the due process followed (not going for procurement with 100% advance amount), Government of India does not stand to lose a single rupee, said the statement.
-India Legal Bureau