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Renowned Global Corrupt Company ‘FRESENIUS MEDICAL CARE AGE’ Awarded K262million Contract In Malawi

By Yamikani Nicholas Kachingwe

Head of a scandalous company crooked his way to Malawi

A foreign based dialysis clinic operator ‘Fresenius Medical Care Age’ a company infamous for fraudulently activities, bribery scandals and inappropriate customer related mistreatment issues has been awarded a huge contract in Malawi. The sham operator will be providing dialysis services to the Kamuzu Central Hospital for three years at an exorbitant fee of K262 Million. 

Just for easy understanding:
In medicine, dialysis is the process of removing excess water, solutes, and toxins from the blood in people whose kidneys can no longer perform these functions naturally. This is referred to as renal replacement therapy. The first successful dialysis was performed in 1943.

The same operator for the past 7 years had a contract with Queen Elizabeth Central Hospital and we have all heard, read and seen how many of our beloved brothers, sisters, fathers, uncles, mothers and other Malawians with Kidney problems have been suffering and even others  have died due to the poor operating performance by this very same corrupt company.

Many patients  for the past seven years have been referred  to KCH for their kidney dialysis. And the management of Q.E.C.H has refused to renew their contract due to their incompetence and unprofessional customer service. 

A scene at Kamuzu Central Hospital

For Instance: 
On 5th June 2017.

Q.E.C.H was forced to temporarily shut down their Dialysis Department due to the fact the company refused to offer services without payment,in which priorly the management of the hospital appealed to them to give them time to source funds from the government.

They refused and a lot of our good people passed on. Anthu ochuluka  anamwalira kamba koyipa mtima kwa company imeneyi. The same company in March 2019.

US Department of Justice ordered it to pay a fine  of $231 Million for violation of provisions of The foreign  Corrupt Practices Act.

Reuters reported:
“Germany-based dialysis clinic operator Fresenius Medical Care AG will pay about $231 million to resolve criminal and civil allegations that the company paid bribes to public health and government officials in several countries to win or retain business, the U.S. Justice Department said on Friday.

As part of the settlement, the company admitted that it doled out bribes to officials in Angola and Saudi Arabia from 2007 through 2016, and also failed to maintain proper internal accounting controls, the department said.
The Justice Department agreed not to prosecute the company criminally in exchange for Fresenius paying a penalty of $84,715,273″.

“We are pleased to have concluded these investigations and to have resolved the issues that we identified and voluntarily disclosed to the U.S. authorities,” Fresenius Medical Care Chief Executive Officer Rice Powell said in a statement.

Reuters went further to  reveal:
“Morocco, for instance, the department said the company paid bribes through a “sham” commission to a Moroccan state official in order to win contracts to develop dialysis centers at state-owned military hospitals”.

The scheme worked by having the commission pay 10 percent of the value of the contract to the official, and the payment would be disguised as a bonus payment to a Fresenius company employee.

In addition to Morocco, Angola and Saudi Arabia, the company also paid bribes in Spain, the Justice Department said.
“Fresenius doled out millions of dollars in bribes across the globe to gain an advantage in the medical services industry,” said Brian Benczkowski, the head of the Justice Department’s criminal division.

As part of the settlement, the company has also agreed to retain an independent monitor for at least two years”.
Now! That is the type of a company that Ministry of Health has awarded a contract  to?

If we conclude to say; maybe someone there has been bribed or someone  at  Public Procurement and Disposal of Assets Authority(PPDA) anadya chibanzi,tikhala  tikunama?

Why did the PPDA approved them?
Why did the ministry of health vouched for them? While possessing   full knowledge of their nasty character at Q.E.C.H. 

According to PPDA  Act. 
The awarding of this contract has violated the   section 44(5) and section 44(10) as read with Regulation 9(e) of the Public Procurement and Disposal of Public Assets (Administration of Preferential Treatment) Regulations, 2020 under the Public Procurement and Disposal of Public Assets Act.


The act says; preference should go to local companies owned by Indigenous Malawians who have the capacity to offer the dialysis clinic operating services. So mukutiwuza the whole Malawi tilibe macompany,kuti paka  tikapatse  company yokuba,yachinyengo ngati imeneyi? 

I hereby appealing to the relevant authorities to intervene and stop this awarding which it may translate; it was not done with good intentions apart from enriching themselves. I envision this resulting  into dire consequences!  

Many lives will be lost  due to the well known  poor service delivery by this CROOKED COMPANY. 

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1 COMMENT

  1. Better like that, at least we know where our Tax money goes.
    Not like DPP stealing billions while in the hospitals we have no medicine. Keep it up president Chakwera! 👏👏

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