Drax International has not yet been paid for the
consignment of Covid-19 drugs supplied to Zimbabwe and has since reviewed the
cost to US$600 392, in line with relatively declining global prices following a
marginal rise in production, Health and Child Care Minister Dr Obadiah Moyo has
said.
His remarks follow claims from some sections of the media
that Government had fast-tracked the payment of US$987 720 to Drax
International under unclear circumstances, despite its prices being on the
higher side.
Minister Moyo told journalists yesterday that no payment
had been made to Drax International, adding that due diligence on the prices
was done, but drug prices were naturally higher due to the Covid-19 pandemic
outbreak, and the grounding of most airlines resulting in operational airlines
charging between US$18 and US$25 per kilogramme.
He said “Drax has not yet been paid” for what it supplied
as negotiations in terms of pricing were ongoing.
“Following the negotiations which were done between the
Ministry of Health and Drax representative, they agreed to reduce their prices
(to US$600 392),” said Minister Moyo.
“During their initial quotation, most companies had closed
globally and if opened, they had skeleton staff to ensure that social distances
were observed in line with the WHO recommendations on managing Covid-19.
“The demand for the products then became very high
worldwide and still continued to be very high as the populace is still required
to wear masks and use sanitisers frequently.”
The spike in demand led higher prices for anything related
to Covid-19, while some countries had banned the exportation of products
related to the pandemic, leaving Zimbabwe with nowhere to get products at a
time when it was critical to move with speed to procure them so that in the
event of a major outbreak, the country would be prepared.
However, since the time Drax International had been asked
to supply the items, prices have been marginally declining, and some companies
reopening leading to fairly low prices although freight charges remained high
since many airlines are still grounded. Herald
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