DA WELCOMES PROBE INTO BARA CAT SCANNERS

I welcome the announced probe by the Gauteng Health Department into the award of the contract for two CAT Scanners at the Chris Hani Baragwanath Hospital.

This is an admission of irregular procedures and probable wasteful expenditure.

It seems to me that a particular company was favoured as it is admitted that it was sent a letter of award before the Department Acquisition Council had adjudicated the tenders.

This was despite the fact that Medi-Four Medical Supplies had submitted the highest bid at R29.45 million, and had lower points than other companies.

Because of the irregular award letter it appears that negotiations to reduce the price to R19 million took place only with this company.

An even better price might have been obtained from Philips Medical Systems which submitted the lowest initial bid of R22.1 million.

The losing companies could take the Gauteng Health Department to court, which will mean an even bigger loss for the Department because of its poor procurement system.

The Department must make the findings of its investigation public and ensure that all tender procedures are fair and transparent.

Statement issued by Jack Bloom MPL, DA Gauteng Health Spokesman, March 29 2011

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