2020News

PRM presents widespread corruption in government medical supplies contracting

In a press conference called on 16 April 2020, the leading opposition political party, the Modern Revolutionary Party (PRM), presented evidence of widespread corruption in government procurement under the special conditions in place during this State of Emergency.

The PRM denounced that its technicians have been able to verify “serious irregularities” in the purchase tenders of the Ministry of Public Health and Social Assistance (MISPAS), 35 of which were irregularly carried out on the same day and with intervals of 28 minutes to 4 hours. Several of these purchases evidence overpricing and non-compliance with the deadlines for delivery of purchase orders and the rules of the Procurement Agency.

Between 19 March and 9 April 2020: “The Ministry of Public Health has carried out 60 tenders, of which 35 were allocated in an average of 4 hours and 25 minutes between the time of publication and the submission of the offer. There are 22 that took an average of 7 minutes, between publication on the portal and bidding, for an assigned value of RD$276 million. Among the tenders ‘awarded and held’ there are 15 for an estimated value of RD$43 million (reference values) that took only 5 minutes to materialize,” assures PRM when presenting findings of its investigations in the procurement carried out by the Medina administration public health departments.

The PRM says that the bids show a particular effort to benefit the company Tools Resources Enterprises – Toreen SRL. The president of the party, José Ignacio Paliza, tweeted: “Overpricing in a single bid for RD$116 million and RD$125 million above the reference price. This benefits the famous company Tools Resources Enterprises – Toreen SRL, which did not fulfill the purchases of the National Health System (SNS) for RD$1.5 billion”. He was referring to the announced recent cancelation of a delivery of goods by Tools Resources after the PRM previously had denounced the irregularities to the nation. At the time, Chanel Rosa Chupani, director of the National Health Service, said the order was cancelled for lack of fulfillment on behalf of the company.

Orlando Jorge Mera, political delegate of the PRM to the Central Electoral Board (JCE), explained that in the case of tender #2020036, it was published by the Procurement Agency at 10:30am on 25 March 2020, and physical offers were received at 10:40am. The bids were reviewed at 10:50am, evaluated at 10:55am and by 11am the tender had been awarded.

He mentioned that in one case when a tender was announced at 2:40pm to close at 4:20pm, and a legitimate medical supplies vendor Medek quoted RD$3,000 for protective gear, but the tender was cancelled after Tools had quoted RD$7,000.

Jorge Mera presented an email where Rosalba Arias, deputy financial director of the Ministry of Public Health, goes on record in an email to Minister of Public Health, Dr. Rafael Sánchez Cárdenas, expressing her dissatisfaction with the winner of the tender for needed goods awarded to Tools Resources. “They never adjust themselves to the time period nor the quality required according to the requirement statement, and they continue to deliver goods that have not been requested obliging the warehouse staff to receive these,” she writes. She mentions a recent order of protective gear that was only received “because of instructions from the Minister’s office.”

Jorge Mera said the party is evaluating dozens of other tenders carried out under the emergency situation and that also present irregularities. “Soon we will tell the actions we will take.” As reported, Tools Resources Enterprises – Toreen SRL has benefited with over RD$600 million in contracts for medical supplies.

Jorge Mera said that Decree 133-20 that authorizes the emergency purchases establishes at the same time that the purchases need to comply with items 8, 9, and 10 of Art. 4 of the ruling for contracting (No. 543-12) that refer to quality and the ensuring of buying at the best price, which he says has not been occurring in the cases of the contracting, especially with Tools Resources.

Regarding to Tools Resources Enterprises – Toreen, SRL, Jorge Mera reported that the company previously was a construction supplier to the government. After the declaration of emergency, the company changed its registry to become a medical suppliers provider. “Sectors in the Presidential Palace are protecting these companies,” said Jorge Mera, referring to the winners of the irregular tenders.

In regards to the email from Rosalba Arias, Public Health Minister Dr. Rafael Sánchez Cárdenas said the contract that she refers to was cancelled, as reported in Diario Libre in its 17 April issue.

Print media has not given explanations as to who are the owners of Tools Resources Enterprises – Toreen SRL. The company has benefited with hundreds of millions of government contracting while having a registered capital of RD$100,000.

Read more in Spanish:
Diario Libre
Hoy
El Caribe
Listin Diario
Listin Diario
El Dia
Diario Libre

17 April 2020