By Buba Gagigo
In the process of engaging companies for the procurement of Pharmaceuticals and other Health products on behalf of the Ministry of Health in The Gambia, the Gambia Health Ministry has deviated from the specified full pre-financing requirement outlined in the bidding document.
The Ministry of Health commenced the bidding process for the procurement of Pharmaceuticals and other health products on January 16, 2023, inviting eligible companies to participate. The bidding document explicitly mandated a one hundred percent pre-financing requirement.
Details from the bidding document obtained by Kerr Fatou indicate that the section on payment for goods explicitly states, “Payment shall only be made upon the successful completion and delivery of the requested products and consumables (100% PRE-FINANCING) within the stipulated 90-day delivery period.”
Portion of the bidding document that indicates 100% Pre-financing
Following the receipt of applications from various companies, the ministry awarded contracts to the following successful bidders: Atlantic, Gennichem, MPP Enterprise, Multi-G, Savorite, Shyben, Standard Solution, and Unimed.
An official notification from the Ministry of Health regarding the contract award to one of the selected companies stated, “We are pleased to announce the contract award for the procurement of Pharmaceuticals and other health products for 2023. This contract is structured as a 100% pre-financed arrangement, where all financial resources for the contract’s execution, including procurement and associated costs, will be provided by your organization.”
the 100% pre-financing claim is not reflected. Page seven of the contract document, under the section ‘Payment of foreign currency portion,’ outlines the payment terms as follows:
“(i) Advance Payment: Ten (20) percent of the contract price shall be paid within thirty (30) days of signing of the Contract and upon submission of a claim and a bank guarantee for equivalent amount valid until the Goods are delivered and in the form provided in the bidding documents or another form acceptable to the Purchaser.
“(ii) On Shipment: Eighty (70) percent of the Contract Price of the Goods shipped shall be paid through irrevocable confirmed letter of credit opened in favor of the Supplier in a bank in its country, upon submission of documents specified in GCC Clause 13.
“(iii) On Acceptance: Ten (10) percent of the Contract Price of Goods received shall be paid within thirty (30) days of receipt of the Goods upon submission of claim supported by the acceptance certificate issued by the Purchaser.”
The portion of the contract document that indicates 20% advance payment
The section on ‘Payment of Goods and services supplied from within the supplier’s country’ also mirrors the provisions under ‘Payment of foreign currency portion’ in the contract document from the Ministry of Health.
