Sputnik V Vaccine saga: How Finance Ministry Busted Health Minister Agyeman-Manu

Details are beginning to emerge that the Finance Ministry, had queried the Health Ministry over differences in the two Sputnik-V vaccines contracts signed with Sheikh Ahmed Dalmook Al Maktoum’s private office in Dubai and a Ghanaian company, SL Global, forcing an amendment in the latter’s contract.

The query, by the Finance Ministry, quickly led to a massive reduction in SL Global’s price from US$130 million at US$26 per a dose to US$92,5 million for 5 million doses at a cost of US$18.5 per a dose of the same Sputnik-V vaccine being procured from the same sources; Eurogov of Abu Dhabi.

The query have led to Ghana saving a whopping US$38 million, had the SL Global supply contract been honoured.

The Herald learnt from multiple sources that, the Finance Ministry’s query, followed what it noticed was a vast difference between Sheikh Maktoum’s vaccine and that of SL Global which were submitted to the Finance Ministry seven days apart.

Sheikh Ahmed Dalmook Al Maktoum’s contract for the supply of 300,000 doses of the Sputnik-V Russian vaccines went to the Finance Ministry ahead of that of SL Global.

Sheikh Ahmed Dalmook Al Maktoum, was using his links to get the vaccine for Ghana at a cost of the US$19 per a dose at the cost US$5.7 million, but officials at the Finance Ministry, got alarmed that counterparts at Health Ministry had given SL Global another Sputnik-V supply contract at the cost of US$130 million at US$26 per a dose.

The query, The Herald learnt, quickly led to an amendment of SL Global’s initial contract with a massive reduction of US$7.5.

That amendment and reduction meant that Ghana was now going to pay SL Global, US$92,500,000.00 for the 5 million doses at a cost of US$18.5 and not the US$130 million at US$26 per a dose.

The prices of Sheikh Ahmed Dalmook Al Maktoum’s Sputnik-v vaccine, thus became five cents more than that of SL Global.

Interestingly, both Sheikh Ahmed Dalmook Al Maktoum and SL Global, were getting the Sputnik-V vaccine from the same market; Eurogov of Abu Dhabi, which had invested a whopping US$5 billion dollars in the development of the Russian vaccine.

Meanwhile, Sheikh Ahmed Dalmook Al Maktoum, has since refunded $2,470,000 to Ghana, according to documents sighted.

In a letter from Sheikh Al Maktoum, he said no funds had been drawn under the Letter of Credit. He also said the Letter of Credit stands expired, as of June 2021. Sheikh Al Maktoum is expecting a payment receipt once the funds have been credited into the government bank account.

Ghana had already taken delivery of 20,000 out of 300,000 doses of the vaccine expected, and got 17,000 of the vaccine as a gift from the Dubai-based man who was paid $2,850,000 for his services out of an expected $5,700,000.

A 3-page letter dated 26th July 2021 from the Finance Ministry to the Parliament’s Ad hoc Committee which probed the Sputnik-V contract which was broken into two parts and signed with two companies; SL Global of Ghana and Sheikh Ahmed Dalmook Al Maktoum’s company based in Dubai revealed some interesting things.

The Health Ministry entered the Vaccine Supply Agreement with the Private Office of Sheikh Ahmed Dalmook Al Maktoum on March 9, 2021 and signed a second Partnership Agreement with S. L. Global Limited on March 16, 2021.

The second contract was later revised by an amendment to the Partnership Agreement dated April 14, 2021.

SL Global Company is registered under the laws of Ghana with License Number CS102212012 and has its registered offices at House Number 3RS25, Devtraco Estates, Tema, P.O. Box KA 18193, Accra, Ghana.

SL Global was established in 2016 and it is a partnership between a leading global healthcare investment group and some Ghanaian entrepreneurs. It is vested with the provision of funding for and delivery of healthcare projects and infrastructure in Ghana.

The Finance Ministry’s document signed by Charles Adu Boahen, a Minister of State, revealed that two contracts were separately signed by the Health Ministry for the Sputnik-V vaccine. One with Sheikh Maktoum’s company in Dubai and the other with SL Global, a Ghanaian company.

It established that the Health Minister perjured when he told Parliament that he was unaware of the payments made to the Dubai-based company.

The Finance Ministry document further revealed that among the two companies, it was only the Dubai company that got paid 50 percent of the US$5.700, 000. SL Global was not paid a dime.

Interestingly, both companies could not supply the Sputnik-V vaccine, raising questions as to whether or not the two companies and their directors were related in any way.

The Minister of Health, Kwaku Agyeman-Manu, has been under fire because of this transaction.

The controversy began when a Norwegian newspaper, VG, reported that the government was using the services of middlemen to procure 3.4 million doses of Russia’s Sputnik-V vaccines. But this was at a higher cost of $19 other than the original factory price of $10. This prompted calls for the abrogation of the procurement contract.

The Minister had earlier claimed that the state had not made any payments for the vaccine.

The Health Committee in Parliament, had also said the government was not being ripped off in the deal with its chairman, Dr. Nana Ayew Afriyie, saying that the Russian Direct Investment Fund (RDIF) and the procurement of the Sputnik-V vaccines require the use of middlemen whose activities will lead to an increase in the original price.

Dr. Afriyie also said no consignment has been received.

But a parliamentary committee set up to probe the deal indicated that the $2,850,000 representing 50 percent of the $5,700,000 owed to Sheikh Maktoum for the supply of 300,000 doses of Sputnik V vaccine was actually paid to him, although only 20,000 doses were delivered.

The contract, according to Ghana’s Health Minister, was abrogated by Sheikh Ahmed after failure to meet his obligation.

Findings of the committee

The parliamentary committee set up to probe the deal released damning findings, including the fact that the Health Ministry did not receive Cabinet approval for the deal.

The health Ministry also breached the constitution by not seeking parliamentary approval for the agreement.

In addition, the Public Procurement Authority did not seek approval from its Board before signing the Agreements.

The Minister for Finance had been tasked to take steps to recover the money already paid to Sheikh Al Maktoum.

The committee, however, did not outline explicit sanctions for the Health Minister.

These findings were contained in a 29-page report.

In the aftermath of the revelations, there have been calls for Mr Agyeman-Manu to resign as Health Minister.

The consensus from Civil Society Organisations and observers has been that the minister has no excuse and justification for the procurement infractions.

The main opposition party, the National Democratic Congress, is also adamant that the Minister resigns. They even want the Finance Minister to shoulder some of the blame. The hashtag #AgyemanManuMustGo trended on social media, with Ghanaians demanding the Minister leaves his portfolio because of his role in the deal.

They rubbished the Minister’s defence when he appeared before the parliamentary committee probing the deal on July 19, where he notably said he was desperate and confused when he oversaw the deal for the vaccines.

This came as Ghana contended with its inability to secure vaccines to meet its target to vaccinate 20 million people.

Mr Agyeman-Manu has received some backing from members of the government and legislators.

The Minister of Finance, Ken Ofori-Atta, for example, said Ghanaians were being unsympathetic.

He said this because he felt Mr Agyeman-Manu, was doing his best to secure vaccines for the country.

The Deputy Majority Leader and the chairman of the committee that probed the botched deal, Alexander Afenyo-Markin, further said it would not be necessary to take punitive action against the Health Minister.

Though the Attorney General is on record to have advised against the deal, Mr. Afenyo-Markin felt the urgency of the situation did not permit the Minister to use the right channels.

In President Akufo-Addo’s only public comments on the Health Minister in the wake of the controversy, he laughed, saying Mr Agyeman-Manu had endured a lot at his ministry.

Mr Agyeman-Manu is currently on a two-week leave to enable him to attend to some personal issues.

Source: theheraldghana