KUALA LUMPUR (March 25): Pharmaniaga Logistic Sdn Bhd (PLSB), a wholly-owned unit of Practice Note 17 outfit Pharmaniaga Bhd, has agreed to reimburse the Ministry of Health (MOH) RM16.78 million for the supply of 104 malfunctioning ventilators during the Covid-19 pandemic in 2020, according to the Public Accounts Committee.

Although there was no written agreement between the MOH and PLSB regarding the procurement of ventilators, PAC chairperson Datuk Mas Ermieyati Samsudin said that PLSB has agreed in principle to bear the costs for the malfunctioning ventilators during a meeting chaired by the Secretary General of Treasury on Feb 29, 2024.

"In principle, PLSB agreed that the costs for purchasing and upgrading ventilators would apply only to the 32 functional units. PLSB has agreed to refund RM16.78 million to the MOH," Mas Ermieyati said in a statement on Monday.

According to the PAC report released in October last year, the MOH authorized a RM30 million down payment to PLSB for the procurement of 500 ventilators, with 136 units delivered from April 1 to May 19, 2020, costing RM20.12 million.

However, on June 4, 2020, the MOH notified the company that the ventilators were incompatible, with only 28 units operational. After additional repairs and replacements, only four more units became functional, bringing the total to 32.

The ventilator deal also received criticism as the PAC report revealed the absence of a written agreement between the MOH and PLSB for ventilator procurement during the pandemic, leading to no accountability for the malfunctioning units.

Despite being the strategic logistics partner for MOH and supplying over 700 pharmaceutical items and consumables under its concession, PLSB was described by the PAC as lacking experience and expertise in medical equipment procurement.

Mas Ermieyati said that the PAC is satisfied with the MOH's efforts in obtaining the refund for the malfunctioning ventilators.

"The PAC recommends that the refunded amount be used to supplement the Ministry of Finance's budget to ensure the availability of ventilator equipment in all government hospitals," she added.