Kathmandu, April 1: The government has cancelled the agreement with a private company contracted to supply medical appliances from China for the prevention and control of COVID-19 pandemic.

At a press conference organized here today by the Ministry of Health and Population, Director-General of the Department of Health, Mahendra Prasad Shrestha shared that the agreement with Omni Business Corporate International Pvt Ltd has been terminated for the company's inability to supply the required medical kits. "The company has expressed its inability to deliver the medical supplies including rapid diagnostic kits in the stipulated time", he said, claiming the agreement signed with the supplier, therefore, was nullified.

Shrestha further shared that the contractor, as per the agreement, had only supplied 10 per cent of the required kits and drugs at the expense of 18 per cent amount. He added the government would confiscate the surety amount deposited by the contractor and also request the authority concerned to blacklist the company for not being able to supply medical drugs and appliances as agreed.

The Director-General also admitted that the materials imported through the company during the time of crisis cost 20 percent more than normal price. It may be noted that the government on Sunday had signed the agreement with the Omni Group to purchase medical assistance used for testing and treating coronavirus.

Shrestha shared that a new process would be initiated for the procurement of medical appliances from coming Thursday again after scrapping the agreement with Omni Business Group. The ministry is preparing to import medical appliances within five days after soliciting a bid with a three-day deadline. "For now we have adequate stock of tools and drugs", he said, adding, "We can provide sufficient medical equipment to the doctors and health workers involved in the treatment of patients".