Gani’s Victoria Pharmaceutical under ACB probe over K36bn suspicious contract at Central Medical Stores under ACB

Human Rights Defenders Coalition (HRDC) has, through its whistleblower Initiative, hit again, this time exposing a suspicious K36 billion contract involving Victoria Pharmaceutical Industries Limited (VPIL) and Central Medical Stores Trust (CMST).

Victoria Pharmaceuticals Chairperson, Farook Gani,
According to our investigations, the Democratic Progressive Party (DPP) led government endorsed a seven-year contract for VPIL to supply syringes to CMST worth K5, 204,025,000 each year.
In its letter to the Anti-Corruption Bureau (ACB) boss Reyneck Matemba dated 8 October 2020, HRDC suspects corruption in the contract because, one, it was unsolicited bid and, two, government does not give seven year supply contracts.
Reads the letter signed by HRDC chairperson Gift Trapence: “It is alleged that this was an unsolicited bid where VPIL approached CMST and stated that they are local manufacturers of pharmaceutical products which they could supply at cheaper prices than what CMST was procuring through third parties and thus they would enjoy economies of scale. CMST and VPIL then allegedly entered into a one-year framework agreement.”
Trapence adds that it is further alleged that after this agreement had been signed, VPIL came back and stated that they had been misled by CMST in the discussions as the estimates that CMST had provided were based on the country’s total population and not on the sick population.
“Allegedly this meant that demand for syringes, for examples, had been calculated at how many each person in the country would need and not on the estimated number of sick persons who would need the syringes. Consequently following the discussion, CMST and VPIL decided to enter into a new framework agreement lasting or seven years at US$6,938,700.00 per year,” writes Trapence.
Interestingly, according to Trapence, though this framework agreement was based on the fact that VPIL would be manufacturing the goods locally; it is, however, alleged that they are just importing the goods.
Trapence underlined that as HRDC they are aware that Malawi Government framework agreements ordinarily run for only one year.
“We also feel that technology can easily render some activities obsolete and that’s a seven year contract for government can easily mean buying things that have been left behind by advances in medical science. We feel there is no financial prudence in this contract,” he said.
One of the managers of VPIL, Farook Gani, confirmed about the contract but was quick to say if we needed more details we should contact CMST.
CMST spokesperson Herbert Chandilanga said they have not seen the letter that HRDC has written ACB.
“We have not seen the letter but when ACB engages us we will cooperate,” he said.
On his part, Matemba confirmed receipt of the letter from HRDC.
HRDC has been vocal through its whistle blowing initiative, bringing to light different allegations of rot that happened or are happening in various government parastatals.

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Rocky Dada
Rocky Dada
8 months ago

I thought all contracts were freezed for scrutinisation and verification? If the process is complete, can they release the results of such. Central Medical Stores shouldn’t be spared as for decades, suppliers have raped this important institution for decades or since its inception as a Trust. Some supplying below par medicines, some never supplied at all. We are hoping the board of directors of this statutory entity will call for all contracts closed and open for the past five years and they will faint at the collosal sums of cash that has been abused. Check reports from the National Audit… Read more »

Sam bojo
Sam bojo
8 months ago

Gani’s you can’t touch him his sold each chicken weight 15kg during the time of Bakili Muluzi era to Malawi Army and Malawi Police still getting stronger Malawians wake up now or our children and grand children will suffer let’s not relay on stupid politicians they just going look at their future wake up dzukani

Panini Sorry
Panini Sorry
8 months ago

Look carefully at the photo of Faruk Gani in the article. He is covering his head with a protective net so his hair does not get into the medical products. But his long beard is uncovered which allows his hair to fall into the product. this is unhygienic and unacceptable in any other country but Malawi. Malawians do not let Tonse or anyone cheat you for as long as Faruk Gani and other Indians like Chunara continue to receive government contracts corruption can never ever be wiped out. Not only will we Malawians continue to be cheated and our politicians… Read more »

Last edited 8 months ago by Panini Sorry
Mad Maxx
Mad Maxx
8 months ago

There are also serious rumours that Sidik Mia and his wife Abida are hopelessly bonded to three crooked Indians in the names of Faisal Aboo, Abdul Batatawala and Farouk Gani because of huge ngongoles accumulated during the 2019-2020 presidential campaign periods. How the Mia’s are going to repay these ngongoles is anybody’s guess.

Kalekeni
Kalekeni
8 months ago

Every dog has its day and this one surely will. At the same time Nundwe has the MDF have been at his mercy for a decade now, but sure as the sun rises, zones ndi nthawi
** and

Last edited 8 months ago by Kalekeni
Mafikizolo
Mafikizolo
8 months ago

When the MCP led Tonse Govt assumed power a few months ago, Faruk Gani and his businesses was one of the major targets in the new govt’s avowed anti-corruption drive. When he learnt about this, Faruk Gani dispatched his son, Furkan, who made several trips to Lilongwe form Blantyre while carrying huge sums of money in his car on each occasion. In Lilongwe, he mainly met with three personalities: Sidik Mia, Richard Chimwendo Banda and MCP Secretary General and Minister of Foreign Affairs, Mkaka. As we speak now, Faruk Gani enjoys the same kind of hold, if not more, that… Read more »

Gyzrpw
Gyzrpw
8 months ago

More pressure on their necks!!!!!!!. One day soon hard-working and honest Malawian that are persistently doing the right thing should proudly say dziko lathu ndalamanso zathu….

Chimwene wa Anabanda ku Joni
Chimwene wa Anabanda ku Joni
8 months ago

Who does not know CGS is the biggest rots of all rots. If President Chakwera fixes this CGS then surely battle against corruption is half won. I will never believe corruption will be fixed in Malawi until one of the big fishes serves jail time. Otherwise this whole noise is deafening

Bwana Honest
Bwana Honest
8 months ago

Farouk Gani is the God father of corruption in Malawi. If Tonse is serious about fighting corruption than Farouk Gani is the corruption Gid father.

Masharubu
Masharubu
8 months ago

I must confess that I used to just focus my hate and distaste for the rise in corruption levels in Malawi on the Amwenyes. But I’m now becoming nauseated with our own Malawian officials and office holders for encouraging and allowing these Amwenye to successfully execute their corrupt and destructive acts in our country. And I hear that newly appointed ministers Chimwendo Banda and Eisenhower Mkaka have also dived head long into this sewage tank. Cry, my beloved country.

Zio ine
Zio ine
8 months ago
Reply to  Masharubu

Indeed Nkaka,chimwendo and Sidik Mia are the names being mentioned by Indians at mosques . These three have been collecting bribes from Indians and Chakwera can not touch them because they share with him.

Gyzrpw
Gyzrpw
8 months ago
Reply to  Masharubu

Very unfortunate if true. Antsy osakonda dziko lawo. you are very right an end to this begins with govt officials

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