The Health November 2023 | Page 18

The PAC ’ s report sheds light on the weaknesses and consequences of Malaysia ’ s emergency procurement

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THE HEALTH | NOVEMBER , 2023

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A damning revelation of bungles

The PAC ’ s report sheds light on the weaknesses and consequences of Malaysia ’ s emergency procurement

BY KHIRTINI K KUMARAN

AS THE world grappled with the unprecedented challenges posed by the Covid-19 pandemic , governments and health organisations worldwide rushed to secure critical medical supplies .

Lockdowns , limited resources , and growing uncertainty made this race against time even more urgent , forcing governments and health organisations worldwide to take unprecedented actions .
Similarly , Malaysia launched an emergency procurement effort of vaccines , ventilators , personal protective equipment ( PPE ), and other essential medical equipment to combat the virus .
However , certain aspects of the country ’ s management of the emergency procurement have been criticised by various parties due to questionable decisions and the lack of transparency .
On Oct 30 , the Public Accounts Committee ( PAC ), released a report that shed light into the intricacies and consequences of the emergency procurement . It was titled ‘ Management of the Covid-19 Outbreak : Expired Vaccines , Unused Ventilator Equipment and Excess of Personal Protective Equipment ( PPE ) Under the Malaysian Ministry of Health ( MoH )’.
It was a damning revelation of the bungles relating to not only vaccine procurement but also PPEs and ventilators .
EMERGENCY PROCUREMENT SITUATION
The Malaysian government estimated a requirement of 83.3 million vaccine doses , but only 72.8 million doses were administered . This left 8.5 million doses in excess that would expire on June 15 , 2023 , amounting to RM505 million .
The reasons given for the excess of vaccines was because of the public ’ s reluctance to receive voluntary booster doses and their fear of vaccine side effects due to the spread of vaccine misinformation . Additionally , delayed vaccine supply deliveries due to global demand added to the stockpile .
With regards to the PPE , the Malaysia healthcare system faced a similar dilemma , notably boot covers and protective suits / coveralls . Changes in guidelines based on the latest scientific findings resulted in the excessive stock of boot covers and protective suits / coveralls .
The new recommendations favoured isolation gowns and fluid-resistant aprons , rendering the previously stockpiled protective gear obsolete . The country faced a potential loss of RM927,000 for excess boot cover stock .
Ventilators played a crucial role in treating severe Covid-19 cases , but
The report also revealed Pharmaniaga Logistic Sdn Bhd ( PLSB ), a party lacking experience and expertise in medical equipment procurement , was instructed to make advance payments for ventilators .
Malaysia ’ s ventilator procurement presented its own set of challenges . Due to a shortage within the country , ventilators were acquired from China . However , upon arrival , these ventilators failed to pass quality control , which led to a series of issues .
Additionally , the ventilator procurement process was unconventional , with payments transferred through the embassy or the Ministry of International Trade and Industry ( MITI ) in China , both lacking expertise in selecting appropriate ventilators .
Malaysia ’ s Ministry of Health ( MoH ) had to rely on its own experts to assess the equipment . The ventilators ’ functionality was hampered by hardware , accessories , and software issues , requiring further upgrades and evaluation .
Importantly , no formal contract existed between MoH and the supplier , leading to confusion regarding warranties and accountability .
SIMILAR CHALLENGES IN MALAYSIA AND SINGAPORE
Singapore ’ s approach mirrors Malaysia ’ s experience in securing vital supplies in a highly competitive global market . Both countries highlight the importance to act swiftly during a pandemic , even if it means navigating uncharted waters in the world of emergency procurement .
Singapore recognised early on those vaccines were key to ending the pandemic and procured them in excess to account for uncertainties . This approach allowed
Singapore to secure vaccines early , but it also meant that spare vaccine stock would expire . Thus , similar to Malaysia , Singapore had to deal with the management of expiring vaccine stocks
Singapore tried to donate spare vaccines but there were no takers due to the oversupply of vaccines worldwide . Approximately 15 per cent of Singapore ’ s Covid-19 vaccine doses worth S $ 140 million have expired .
EMERGENCY PROCUREMENT DISCREPANCIES AND CONTROVERSIES
Because of the pandemic ’ s urgency , traditional procurement processes were out of the question , and instead required unconventional actions .
Such as , due to the constraints of lockdowns and the urgency of the crisis , discussions , evaluations , and decisions surrounding the acquisition of ventilators had to take place via WhatsApp application .
While this unprecedented method highlights the adaptability of government agencies when faced with unforeseen challenges , it also raises concerns about transparency , accountability , and the potential consequences of expedited decisions .
The report also revealed Pharmaniaga Logistic Sdn Bhd ( PLSB ), a party lacking experience and expertise in medical equipment procurement , was instructed to make advance payments for ventilators .
The decision was rooted in an existing relationship between the MoH and PLSB ,