A medical supply company owned by businessman Sakaria Johanness has been banned from participating in public processes for the next five years for supplying suspected stolen medical equipment.
The decision by the Public Procurement Review Panel follows a discovery of missing stock at the Ministry of Health and Social Services' Central Medical Stores (CMS) in Windhoek.
"On 8 May during a routine inspection at the Central Medical Stores, the warehouse manager discovered that a storage area previously containing stock was empty, including two pallets of 20ml syringes that were no longer in place," the review panel said in its order.
According to the order, delivered on 21 May and seen by The Namibian, Tokai Investment CC delivered consignments of syringes and administration sets to the CMS that allegedly matched the missing stock.
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The goods were branded "U-Life" and were previously supplied to CMS by another company called Wupro Technologies (Pty) Ltd.
One of the delivered boxes carried a handwritten stock code used internally by the medical stores.
This raised suspicions that the items originated from the CMS stock.
The review panel said the decision was made to ensure fairness and honesty in public procurement.
According to the order, the matter was reported to the Namibian Police, and a criminal case was opened.
During investigations, Tokai Investment stated that it had purchased the items from an individual identified as "Mr Julius," allegedly linked to a company called CWN CC.
"The applicant (Ministry of Health and Social Services) alleges that a certain Mr Julius, an employee of CWN CC, admitted to selling the boxes to the respondent (Tokai Investment) in his personal capacity for N$45 000. CWN CC's owner reportedly confirmed that the transaction was not done on behalf of the company," the review panel said.
Police investigations further suggested that the transaction was conducted in Mr Julius's personal capacity.
The ministry also alleged that Tokai Investment submitted a forged Namibia Revenue Agency (Namra) good-standing certificate as part of its bid.
A joint investigation by the police and Namra confirmed that the certificate was not issued by the revenue agency.
"Based on these allegations, the applicant (Ministry of Health and Social Services) submitted that the respondent (Tokai Investment CC) engaged in fraud, misrepresentation, unethical conduct and non-compliance with procurement obligations, thereby undermining the integrity of the public health supply chain," the order by the review panel reads.
In its findings, the review panel concluded that Tokai Investment misrepresented its supply chain by indicating in its bid that the medical products would be sourced from approved manufacturers, while in fact acquiring them from an unauthorised individual without informing or seeking approval from the ministry.
The review panel says the medical commodities form part of a sensitive national healthcare supply chain and must be procured from licenced, authorised and traceable suppliers.
Purchasing such items informally is described as a serious breach of procurement and public health standards by the panel.
The review panel further found that the company acted negligently by failing to conduct basic due diligence and showed no remorse, instead attempting to shift blame to unnamed officials.
As a result, the panel ordered that Tokai Investment be banned from participating in any public procurement process for a period of five years, effective from 3 December.
Contacted for comment yesterday, Johannes responded by asking the journalist to send him a text message. However, he did not reply to a text message sent to him.
In June this year, health minister Esperance Luvindao said she had written a letter to the Anti-Corruption Commission to initiate an investigation into irregularities in the Namibia Medicines Regulatory Council, after allegations surfaced regarding the sale of unlicenced medicines and theft of medication.
The minister made these remarks in response to questions raised by the leader of the Affirmative Repositioning, Job Amupanda, in parliament.
"My urgent oral question goes to the minister of health. Number one, it is a fact that illegal importation of medicine is taking place in our country. Not only yesterday, or last month - it is happening today. It is not only quinine. A particular medicine came through via Walvis Bay illegally and unlawfully," Amupanda said.
He further questioned why there is no legal practitioner on the council of the Namibia Medicines Regulatory Council, adding that a member who had been appointed by the council had resigned because of the council's alleged unlawful conduct.
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"It is a fact that no legal practitioner was appointed. It is also a fact that medicine was stolen from the CMS and sold back to the same stores. The thieves are in the United States enjoying themselves," Amupanda said.
He added that part of the unlawfully imported medicines belonged to companies of members of the Namibia Medicines Regulatory Council.
"They attend council meetings and do not make a single declaration that these are their businesses. What are you waiting for with a council that allows for the illegal importation of medicine? A council that sits on reports for two years. The health of our people is in peril - it is not politics," Amupanda said.
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