India cancels COVID-19 testing kits orders from China, says won’t lose a single rupee

NEW DELHI — All orders of the testing kits for coronavirus made to the Chinese firms have been cancelled and not a single rupee will be lost to these firms, the government said on Monday.

“It needs to be stressed that ICMR hasn’t made any payment whatsoever with respect to these supplies. Because of the due process followed, not going for procurement with 100% advance amount, the government doesn’t stand to lose a single rupee,” the government said.

The testing kits procured by the ICMR were in question as many states reported them to be faulty and inefficient to combat the COVID-19 disease.

“After receipt of some supplies, ICMR has again conducted quality checks on these kits in field conditions.  Based on the scientific assessment of their performance, the order in question (Wondfo) along with order in respect of another make found under-performing has been cancelled,” government said.

Indian Council of Medical Research has also issued a revised advisory to state governments regarding Rapid Antibody Blood tests. It has written to the state asking them to stop using Guangzhou Wondfo Biotech and Zhuhai Livzon Diagnostics kit.

“States are advised to stop using these kits procured from the two companies (Guangzhou Wondfo Biotech and Zhuhai Livzon Diagnostics kits) and return them to be sent back to the suppliers, ICMR said.

Ministry of Health has provided a complete timeline for the procurement procedure of the testing kits from the Chinese firms.

“First of all, it is important to understand the background in which procurement decisions are made by ICMR. Testing is one of the most crucial weapons to fight COVID-19 and ICMR is doing everything it can to ramp up testing. This requires procurement of kits and supplying them to states. This procurement is being undertaken when globally there is a huge demand for these test kits and various countries are applying their full might, monetary and diplomatic, to acquire them,” Ministry of Health said in a press note.

“ICMR’S first attempt to procure these kits did not elicit any response from the suppliers. Its second attempt got adequate responses. Of these responses, taking sensitivity and specificity in mind, kits of 2 companies (Biomedemics and Wondfo) were identified for procurement.  Both had the requisite international certifications,” it added.

Ministry said the for Wondfo, evaluation committee got 4 bids and the corresponding quotes received were Rs 1,204, Rs 1,200, Rs 844 and Rs 600. Accordingly, bid offer of Rs 600 was considered as L-1.

It further said that the ICMR tried to procure the kits directly from Wondfo company in China through CGI but issues like lack of commitment on timelines, quotation of rates on US Dollar (on fluctuation), full advance payment among others.

It needs to be also remembered that this was the first ever effort by any Indian agency to procure such kits and the rate quoted by the bidders was the only reference point, it added.