How did RM13 million in public funds get lost on unusable ventilators?

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RM13.07 Million Lost Due to Defective Ventilator Procurement

An estimated RM13.07 million in public funds was lost due to the procurement of unusable ventilators from Pharmaniaga Logistics Sdn Bhd. An audit revealed that a significant portion of the ventilators supplied to Ministry of Health (MoH) facilities between 2020 and April 2022 were defective and unsafe for use. This situation arose from a procurement process conducted under emergency protocols without proper documentation, leaving the government unable to recoup losses or ensure accountability.
Defective Ventilators Supplied to Ministry Facilities

Pharmaniaga Logistics was contracted to supply 500 ventilators during the Covid-19 pandemic. However, the company only managed to deliver 136 units. An audit report subsequently found that 108 out of these 136 ventilators, representing nearly two-thirds of the delivered units, were deemed unsafe for use and could not be utilised by healthcare workers. This failure in critical medical equipment supply occurred during a period of immense public health crisis.
Lack of Documentation Hindered Loss Recovery

The federal government was unable to recover the RM13.07 million lost on the defective ventilators primarily because of a lack of essential procurement documentation. The audit indicated that there were no records detailing the appointment of Pharmaniaga Logistics for the ventilator procurement or any signed agreement between the company and the Ministry of Health. This absence of formal agreements complicated any attempts to claim damages or recoup the expended public funds.
Emergency Procurement Protocol Raised Accountability Concerns

The procurement of these ventilators was reportedly carried out under "emergency procurement protocols." This method, while intended for urgent situations, was conducted without a signed agreement, raising significant questions about accountability and transparency. The absence of a formal contract, even under emergency circumstances involving substantial public funds, potentially weakened the Ministry of Health's legal standing and oversight capabilities in this specific transaction. The procurement process took place during the administration of Tan Sri Muhyiddin Yassin.

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How did RM13 million in public funds get lost on unusable ventilators?

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