The coordinator of the High Commission for the Prevention of Coronavirus, Presidency Minister Gustavo Montalvo defended government purchases for the pandemic in the Dominican Republic in his televised message on the evening of Monday, 6 April 2020. Widespread criticism surged after news was leaked on irregularities in government procurement of supplies for the medical emergency. The focus was mainly on the government awarding a RD$1.5 billion contract to a company with a registered capital of RD$100,000 and whose directors are the accountant and a chauffeur. Montalvo said the contract was canceled when the company did not deliver the goods on time.
In his defense of government procurement for the coronavirus, Montalvo said that the government is competing for the same supplies with other governments around the world and this explains the overpricing. “There have been allegations made against the contracting, but these are unfounded,” he said. “The circumstances are difficult,” he said. Montalvo said that the accusations had been made without proof. A dozen investigative journalists have presented evidence of the overpricing and other irregularities in the procurement contracts benefiting primarily Tools Resources Enterprises Toreen SRL. The company is not a regular supplier to the medical sector and is only known for having supplied the medical equipping in the case of the remodeling of the La Vega public hospital.
Montalvo said that the government had canceled RD$2.72 billion in contracting for lack of timely delivery of the goods. He said the National Health Service (SNS) has only disbursed RD$143 million for equipping and supplies for the management of the health crisis after the state of emergency was called.
He announced that the government ProConsumidor consumer protection agency was reviewing pricing lists. He also mentioned the Medina administration had named an oversight committee for these purchases. “At these times of emergency, the people can trust their institutions,” said Montalvo.
Diario Libre editorialized on 7 April 2020 that the oversight committee can merely act as an observer and is “worthless” in regards to procurement procedures. Editorial writer Ines Aizpun stated: “What hurts is that this type of crime is treated with the disregard with which gossip is handled and that no direct legal action is taken. Actions are so timid. Corruption is what has condemned the PLD to the bad numbers it has today. And the party is wasting every opportunity to amend its image.”
In a separate editorial, Diario Libre points out that the present procurement system oozes irregularities. The editorialist makes the point that while the intention is to show there have been many companies participating in a bid, due to the lack of controls, many companies owned by the same person or groups could be bidding.
In an advertisement in local media on 6 April 2020, the opposition party Modern Revolutionary Party (PRM) indicated that there is evidence of RD$1 billion of overpricing in the recent RD$1.5 billion contract for emergency medical supplies.
The party criticized the fact that the government had been negligent in carrying out widespread diagnostic testing, preparing temporary hospitals, installing obligatory isolation recommended by the Dominican Medical Association (CMD) and carrying out procurement of equipment and supplies with transparency.
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7 April 2020