THE Public Accounts Committee (PAC) is waiting for the Health Ministry’s response regarding the acquisition of 104 defective ventilators during the Covid-19 pandemic before proceeding further with investigations, its chairman Mas Ermieyati Samsudin said, adding that the next hearing session on the matter was scheduled for January 2024.

Mas Ermieyati, who is also the Masjid Tanah lawmaker, told the Malaysian Insight that PAC would provide updates from time to time.

She was responding to calls from the Consumers Association of Penang (CAP) urging authorities to take action against the company which bought the defective ventilators.

CAP said there should be documented and verbal evidence of the process leading to the purchase of the faulty ventilators. This evidence would reveal if there was any gross negligence or corruption involved.

On October 30, the PAC report revealed that deals on the emergency procurement of ventilators during the pandemic were done through WhatsApp due to the urgency, nationwide lockdowns, and travelling constraints.

The report said Pharmaniaga Logistics Sdn Bhd (PLSB) was directed to make an advance payment due to its relationship with the Health Ministry, despite the company having no expertise in the procurement of such medical equipment.

PLSB is a fully-owned subsidiary of local pharmaceutical company Pharmaniaga Bhd.

‘Purchase was unclear’

In the executive summary of its 511-page report on Covid management tabled in parliament, the PAC said PLSB’s role in the purchase was “unclear”, making it difficult to pursue legal action.

“The absence of a written contract between the ministry and PLSB has resulted in no party being accountable for the malfunction of 104 ventilator units (done under emergency procurement protocols).

“To date, the ambiguity of PLSB’s role has hindered legal action from being carried out,” PAC said in its Covid management report on expired vaccines, defective ventilators, and excess personal protective equipment under the Health Ministry.

The purchase of the faulty Covid-19 ventilators was made during Muhyiddin Yassin’s tenure as prime minister, when Dr Adham Baba helmed the health minister portfolio.

However, Mas Ermieyati had then said PAC had no plans to call Adham over its findings.

The PAC’s report revealed that the defective ventilators were sourced from China – marking the first time the ministry had bought ventilators from the country – as options were limited due to global movement restrictions.

Upon receiving the ventilators, it was discovered that the items did not meet the terms and conditions, despite prior review by Health Ministry’s experts.

According to transcripts of the witness testimony from the ministry’s deputy secretary-general (finance), Norazman Ayob, China companies that supplied ventilators during the peak of the Covid-19 pandemic in 2020 had delivered machines that did not meet specifications.

Norazman also said the Health Ministry was preparing to take PLSB to court for reimbursement of 104 defective ventilators supplied in 2020.

“Based on the previous PAC proceeding, we were advised to explore the possibility of obtaining a refund from Pharmaniaga (PLSB) for the non-functioning (ventilator) units.

“Out of the 136 units received, 32 are functional, and the remaining 104 are not,” Norazman said, based on transcripts from the August 22 meeting published in PAC’s report.

“We have drafted a letter of demand against PLSB. However, PLSB has verbally indicated they will challenge the letter of demand, as they claim they were acting under ministry’s instructions.

“According to them, they were the agents, and we were the principals. Hence, they believe there is no basis for us to reclaim the money, as everything was approved by the Health Ministry.

“But this is something we will look into,” Norazman said.

‘Take action against those culpable’

CAP in a statement on Wednesday said at the peak of the pandemic in 2020, the cabinet was informed of the need for 800 ventilators, following which the Health Ministry had paid RM30 million to a company to buy 500 units of them.

Due to supply constraints, the company managed to secure only 136 units for RM20.12 million, a price which was reported to be four times higher. However, it was found that 104 of the ventilators were unusable.

“Earlier this month, the PAC reported that no action could be taken as the Health Ministry did not have a written agreement with the company.

“The PAC has failed in its duty to hold to account those responsible for the purchase of the unusable ventilators. The reason for that is unacceptable.

“The PAC should have recommended that the law enforcement agencies investigate the case and take action against those culpable,” the consumer group added. – December 8, 2023.