FOUR people, including the Medical Stores Department (MSD) acting Director General, ignored expert advice and imported faulty HIV testing kits, subjecting the government to suffer an over two million US dollars (over 3bn/-) loss, a Dar es Salaam court heard.
Prevention and Combating of Corruption Bureau (PCCB) Prosecutor Leonard Swai told the Kisutu Resident Magistrate's Court that the transaction was effected in 2012.
In the dock were MSD acting DG Sylvester Matandiko who is also MSD's Director of Zonal Operations North; Sadiki Materu, a Quality Assurance Manager with MSD and two employees with Private Health Laboratories Board, Zaynab Mfaume and Joseph Nchimbi.
Between May 3, 2010 and September 23, 2011, the government received some funds from Global Fund and following the disbursement, MSD made a call off order under the framework agreement for supply of diagnostic tests valued at 10,613,052 to SD Africa Limited.
While the procurement process was still going on, the World Health Organization (WHO) released a filed safety notice not to procure or use the HIV kits described as HIV SD BIOLINES manufactured by Standard Diagnostics of the Republic of Korea.
Following such notice, the manufacturer also released a notice to all its customers requiring them to discontinue use or sell the products in issue.
At the time, MSD was in the process of purchasing the kits in question. On January 6, 2012, WHO issued an update information on the kits that further quality checking revealed the kits were fatally defective and advised beneficiaries that pending procurement of the product be cancelled and no procurement initiated until further notice.
Besides all correspondents and meetings, a consignment of the kits was imported into the country via Julius Nyerere International Airport between January 12 and 18.
The Board wrote a reply letter to SD Africa on their request for permission to import the prohibited HIV testing kits, advising them to consult the MSD first. Thereafter, an evaluation technical committee meeting chaired by Dr Deo Mtasiwa was held on February 1, 2012 and MSD was represented by Matandiko.
The meeting directed MSD, among others, to write to the manufacturer for compensation, to provide clarification on actions taken on the clearance of the kits and action taken on recalling the same.
Instead of heeding to the directions, MSD wrote a letter requesting the Board to permit SD Africa to import the kits on allegation that the items were at the airport attracting charges and were to be quarantined before distribution.
Ultimately, 45,000 of defective HIV testing kits were delivered to MSD. Upon such delivery, SD Africa raised an invoice for 2,092,500 US dollars.
The money was duly paid to the company on July 20, 2012. The prosecution alleged that the conduct by the accused persons caused the company to obtain undue advantage of the said amount, thus causing the government to suffer a loss.
In the case, Matandiko and Materu, according to the prosecution, used their powers in violation of directives given by the government, prohibiting the importation of the kits, making the SD Africa Limited to obtain an undue advantage of the said money after supplying the HIV SD BIOLINES.
It is alleged further that Materu abused his position by approving quality of the imported HIV SD BIOLINES in violation of government's directive.
The prosecution told the court that on February 7, 2012, at the Private Health Laboratories Board office in Ilala District, in discharge of his duties as Assistant Registrar, Nchimbi intentionally abused his position by approving commercial invoices, thereby issuing clearance for importation of fake HIV SD BIOLINES.
It is alleged further that on February 7, 2012, at the same offices, in discharge of her duties as Registrar, Mfaume abused her position by issuing permit certificate of import or export of health laboratory products or specimens or other supplies for importation of the defective kits.
The prosecutor alleged that between January 1 and July 20, 2012, all accused persons, by their wilful acts, caused the government of United Republic of Tanzania to suffer a pecuniary loss of the said 2,093,500 US dollars (about 3.4bn/-).
By Faustine Kapama
By Faustine Kapama
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