The government has cancelled Drax Consult’s $60 Million deal after it headlined that the company was inflating the prices of the COVID-19 materials it was supplying the government, the Daily News reports. The government only said it will pay for the consignment if and when the company reviews their prices down.
This was revealed in a letter from the Finance Ministry to the acting Health Ministry Secretary that reportedly reads:
As you are aware, a meeting was held between the ministers of Finance … and Health and Child Care in which a representative of Drax Consult was invited to participate to discuss the contract on the supply of Covid-19 requirements, as well as the suspension of the US$20 million contract and the cancellation of the US$40 million contract with the same company.
One of the outcomes of the meeting was that government did not accept the prices that had been quoted on items under the above-mentioned contracts and Drax Consult was advised to engage NatPharm to review the prices downwards.
The understanding was that payment would only be made upon submission of revised prices, as well as upon confirmation of delivery of the outstanding Covid-19 equipment which the supplier had advised was still in transit.
Drax was reportedly supplying Natpham with pharmaceuticals since September 2019. Meanwhile, the President’s son’s name was dragged into what the media is calling Covidgate. Collins Mnangagwa is said to be a part of the Drax, an allegation he vehemently denied.
More: Daily News