Controversial purchase of ‘human immunoglobulin’ from private sector

The emergency procurement of 182 items of pharmaceutical drugs, including ‘human immunoglobulin’ (HI) and ‘rituximab,’ had been decided by the Health Ministry based on a Cabinet decision taken on 26th September 2022, as per documents issued by the then Secretary, Ministry of Health, and that soon thereafter offers had been invited by an Emergency Procurement Committee (EPC), headed by the then Health Ministry Secretary. Offers had been opened on 3rd October 2022 and that the successful bidders had been selected by the EPC and informed shortly thereafter of their selection, having obtained the recommendations of the Technical Evaluation Committee (TEC).

These submissions were made before Maligakanda Magistrate Lochana Abeywickrema Weerasinghe by President’s Counsel M.M. Zuhair who appeared with Anjana Rathnasiri and Rizwan Uvais for Dr. Wickramanayake, the 2nd suspect in the controversial government decision to purchase 182 pharmaceuticals, including HI, from private sector suppliers, under the Indian line of credit of US $ 200 million offered by the Delhi government in March 2022.

During virtually the entire year in 2022, when all the major decisions were taken to purchase from local suppliers, as decided by the Cabinet including HI and other pharmaceuticals, Dr Kapila Wickramanayake was in the United Kingdom on an officially released assignment and was not the Director in the medical supplies division of the Health Ministry.

The 28/10/2022 letter of the Health Secretary, also states that letters of acceptance of the selected offers had already been issued to the successful suppliers.

The second suspect had nothing to do with any of the major relevant decisions relating to this purchase and on his resuming duties as the Director, MSD, in 2023, he had no personal involvement, even at the delivery point in the Health Ministry Stores.

These submissions, Zuhair PC said, were being made based on the CID reports of investigations, dated 1st and 20th November 2022, made to the Maligakanda Magistrate, following certain incidents of adverse reactions on some patients, allegedly from the human immunoglobulin supplied by the first suspect’s company.

He said that according to the CID investigations, filed in Court dated 1/11/2023, the first suspect’s company had apparently disclosed in their offer to the EPC that the raw material for the production of ‘HI’ will be imported from the named Indian manufacturer and produced in Sri Lanka and supplied by and on behalf of the Indian Company.

Zuhair PC urged the CID to produce to Court, the Health Secretary’s letter, dated 28/10/2022, addressed to the Deputy Director General of the medical supplies division requiring payments for supplies to be done within 45 days, failing which delayed payments will cost the Ministry an additional 3% monthly charge payable to the supplier by the Ministry, whereas the penalty for late deliveries and quantity failures payable by the supplier can be waived by the Ministry.

When all these happened here in 2022, the second suspect Dr Wickramanayake was working in the UK. He is entitled to bail as the Public Property Act has no application considering the facts of this case, he submitted.

According to paragraph 18 of the police investigations, Counsel said, the successful tenderer of the human immunoglobulin is alleged to have submitted a forged WOR to the Medical Supplies Division, which is subject to investigation. The said supplier is the first suspect.

If so, it is the officials in the Medical Supplies Division who had been cheated by the Supplier, and these officials could be important witnesses. The Magistrate reserved order for 13/12/2023.

Deputy Solicitor General Lakmini Girihagama appeared on behalf of the Attorney General for the CID. Kalinga Indatissa PC appeared for the first suspect Sudath Janaka Fernando, the supplier. Kasun Chanaka AAL appeared for the third suspect Shanthini Soloman. Roland Perera PC appeared for the fourth suspect Niran Danajaya. Asoka Serasinghe AAL appeared for the fifth suspect Sujith Wasantha Kumara.