Sputnik-V COVID-19 Vaccine Contract: 50% of contract sum paid

August 8, 2021

The nine-member ad hoc committee set up by parliament to investigate the procurement contract between the government of the Republic of Ghana and his highness sheikh Ahmed Dalmook al Maktoum and S. l. Global for the supply of Sputnik-V Covid-19 vaccines has revealed that an amount of US$2,850,000.00 (representing 50% of the contract sum of US$5,700,000.00) has been paid to Messrs Al Maktoum and this translates into the Cedi equivalent of GH¢16,331,640.00 converted at the then prevailing exchange rate of US$1 to GH¢5.73.

This is contrary to what the minister told the committee when he appeared before it that he had no knowledge of any payment.

The committee also uncover non-compliance of Article 181(5) of the 1992 Constitution; stating that the Procurement and Supply of the Sputnik-V Covid-19 Vaccines between the Government of the Republic of Ghana (represented by the 23 Ministry of Health) and the Private Office of His Highness Sheikh Ahmed Dalmook Al Maktoum, is an international Agreement, hence the Agreement required a prior Parliamentary approval to come into operation in accordance with Article 181(5) of the 1992 Constitution.

Other findings of the committee include:

The Committee found that the Ministry of Health did not seek approval from the Board of PPA under Sections 40 and 41 of Act 663 before signing the Agreements. The Ministry however, applied for ratification under Section 90(3) (c) of the Act. Which has still not been granted.
The Committee also found that PPA has not concluded its investigations into the matter.
The Committee found that the Ministry dealt with the Private Office of His Highness Al Maktoum and S. L. Global. The two entities were appointed by the Aurugulf Health Investment (Abu Dhabi, United Arab Emirates), to be both Agents and Distributors of the Sputnik-V COVID-19 Vaccines in Ghana. Clearly using middlemen for the purchase and distribution of the vaccine.
The Committee found that the amount of US$19.00 was the agreed price of the vaccine under the Ministry’s Agreement with Al Maktoum and US$18.50 under the Agreement with S. L. Global which was originally $26 per dose.
The Committee found that the ex-factory price of the Sputnik-V Vaccine was US$10.00. However, the Minister explained that the prices achieved under the two Agreements included the cost of documentation, shipping, packaging, logistics and expenses in relation to transportation of the vaccine from its place of origin to Ghana.
The Committee found that the Ministry entered into the two Agreements without cabinet approval but only based on a Ministerial decision, having regard to the advice of the COVID-19 Emergency Operating Committee.

TERMS OF ENGAGEMENT:

The committee was charged to do the following:

To determine whether the transaction with respect to the procurement and supply of Sputnik-V COVID-19 Vaccines between the Government of the Republic of Ghana (represented by the Ministry of Health) and the Private Office of H.H. Sheikh Ahmed Dalmook Al Maktoum and S. L. Global qualifies as an International Business or Economic Transaction under article 181(5) of the Constitution, and if so, whether it was subjected to prior approval by Parliament;
To determine whether the procurement process was followed and the propriety of same;
To determine whether the services of a middle man were procured in the transaction and if so, the propriety of same having regard to the relevant laws;
To ascertain the cost of the vaccines, the justification of the cost of the vaccine and whether the transaction guaranteed value for money for Ghana;
To determine whether any consideration has passed from the Government of the Republic of Ghana to the middle man, the suppliers or any other person in respect of the transaction;
To determine whether the hon. minister for Health misled Parliament during the consideration of the transaction for the procurement of the vaccine; and vii. To inquire into any other matter connected with the intended purchase and supply of the SPUTNIK-V Vaccine in the Agreement between the Government of the Republic of Ghana and the Private Office of H.H. Sheikh Ahmed Dalmook Al Maktoum and S. L. Global.

RECOMMENDATIONS

Issues Relating to Article 181(5) of the Constitution

The Committee is of the opinion that even if the situation in the country at the time the Agreement was signed, was that of an emergency, due process of law should have been followed because Parliament would have treated the issue with the urgency it deserved and the appropriate action would have been taken accordingly. The Agreement would have been taken under certificate of urgency in accordance with the Standing Orders and the practices of the House.
The point must also be made that, even if it was an emergency, the Minister should have found time to communicate effectively and engage with the Committee on Health. The extensive engagement would have saved the Ministry from the negative reactions from the citizenry and some Members of Parliament.
The Committee therefore recommends that, in future, any such transaction, whether local or international, be subjected to broader stakeholder consultations and should be taken through due process of law including Parliamentary approval. Other Ministries, Departments and Agencies (MDAs) should take a cue from the recommendation, not only in the case of Agreements but also on issues relating to policies and programmes to be implemented.

Issues relating to the Procurement Process

The Committee found that the Ministry of Health did not seek approval from the Board of PPA under Sections 40 and 41 of Act 663 before signing the Agreements. It applied for ratification under Section 90(3) (c) of the Act. For the avoidance of doubt, Section 89(1) provides as follows ‘’The Board may appoint a person to conduct an investigation into a matter related to the conduct of procurement proceedings by a procurement entity, or the conclusion or operation of a procurement contract if it considers that an investigation is necessary or desirable to prevent, or detect a contravention of this Act’’. Section 90 of Act 663 as amended sets out the procedures on completion of an investigation caused by the Board of the Authority. Specifically, Section 90(1) provides 26 that “An investigator shall forward a copy of the investigation report to the Board”. Section 90(3) provides that “The Board shall, if satisfied that there has been a contravention of a provision of this Act or any other enactment in relation to procurement proceedings or procurement contracts, take action to rectify the contravention which action shall include
(a) annulment of the procurement proceedings;
(b) cancellation of the procurement contract;
(c) ratification of anything done in relation to the proceedings; or
(d) a declaration consistent with the relevant provisions of this Act.”

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