In 2020, 43.7 per cent more money was spend on medical goods.
* All calculations were made at an average dollar to som rate in 2020. 1 dollar = 77.59 som
The coronavirus pandemic has taken all countries aback. No one has been prepared for the unknown infection and its severe course. In the first days and even weeks health workers did not know how to treat patients. It was rather a defence. This is obvious from state procurements.
In Kyrgyzstan, almost half of all procurements related to Covid-19 made via the public procurement portal in 2020 were for personal protective equipment: coveralls, medical masks and shoe covers. In total, they cost 736 million 22.9 thousand som (9.49 million dollars) to the budget.
However, medical masks were the most popular protective equipment. In 2020, 1,605 tenders were held to purchase them. The total amount of money spent to buy them was 369 million 354 thousand som (4.76 million dollars). The price of the masks varied from 1 to 550 som (0.013-7.09 dollars) per unit. But don’t jump to conclusions. The point is that a unit is a provisional value because all procuring organisations calculate it differently. For example, in one case, a unit may be one mask, in another case it may be a pack of masks, etc.
Anyway, Nookat dental policlinic purchased the masks at the lowest price – only 1 som per unit. The same policlinic purchased one of the most expensive masks – for 550 som. In addition to the difference in the cost, suppliers differ as well. In the first case, suppliers were Meer-Chop and Farvater, in the latter case, supplier was Dent Trade. The latter company supplies dental equipment, which is described in a 122-page catalogue on their website. The catalogue contains many things, including medical masks that cost 8 to 1,000 som (0.1-12.89 dollars). During the pandemic of 2020, Dent Trade managed to supply masks to the Ministry of Interior Affairs, National Centres of Oncology, Cardiology, and others. In general, the company earned 3 million 421.8 thousand som (44.1 thousand dollars) on selling medical masks.
In the meantime, 23.5 per cent of all tenders were related to the goods directly related to Covid-19.
Moreover, 49.2 per cent of this amount meant for direct procurement related to Covid-19 was spent on single-use coveralls, medical masks and shoe covers.
In 2020, single-use coveralls were purchased for 49 million som (631.5 thousand dollars), according to the public procurement portal. Prices vary from 250 to 1.6 thousand som (3.22-20.62 dollars) per unit. However, a unit is a provisional value. For example, in one case, a unit may be one coverall, in another case, it is a whole pack.
The lack of clearly defined units makes automatic analysis of prices impossible. The only way is to count manually, but no one wants to do it. It is quite understandable because 893 tenders for single-use medical masks were held in 2020. Therefore, gaps and deficiencies were identified either in particular goods, or generally in the structure of procurements – whether they were competitive, who won and if the supplier and buyer were affiliated. These were the signs to identify the interest of the tender board. But first things first.
In 2020, over 26 thousand contracts for 4.9 billion som (63.15 million dollars) were awarded via the public procurement website – which is almost 50 per cent more than one year earlier. If we look at the amounts of expenditures by months, we’ll see how panic and the increase in the number of patients affected procurements.
The largest amounts were spent on medical goods in March, when the number of patients began to rise and the emergency was announced (646.6 million som or 8.34 million dollars) and in July, when the number of coronavirus cases in the country broke the record (733.6 million som or 9.45 million dollars).
The procurements were mainly pharmaceuticals, medical equipment and hygiene items.
Medical goods and services were purchased from over two thousand organisations. However, the amounts spent by many organisations were insignificant. Almost one-third of all purchases were made by five organisations led by the Ministry of Health, which is rather reasonable.
Suppliers of medical goods in 2020 on the public procurement website were 2,281 companies and self-employed entrepreneurs. The leaders by the number of executed contracts were Farvater and UniHelp.
Top 5 suppliers cover 20.9 per cent of total value of contracts awarded.
Affiliated companies
The leader by the amount of contracts awarded for the supply of medical goods became Farvater in 2019. The total amount of tenders won was 348.62 million som or 4.49 million dollars (6.99 per cent of the amount of all contracts for medical goods in 2020).
According to Osoo.kg, director of the company is Zhantoro Turdubaev. In the OCCRP database, Zhantoro Turdubaev is mentioned as one of eleven founders of Togotoi Yntymak Koomu Public Association. It proves Turdubaev’s ties to Zhenishbai Bekiev (he is one of the founders, as well), chief accountant of the Spiritual Directorate of the Muslims of Kyrgyzstan, who was mentioned by the media due to financial frauds. He is also mentioned as the owner of Yntymak Joint Kyrgyz-Kazakh venture (IU-Kazakhstan).
Among other founders of Togotoi Yntymak Koomu are:
- Raimzhan Moldokanov — senior inspector of the state tax service of Oktyabrsky district.
- Shailoobek Tairov – according to Osoo.kg, he is director of Alliance Altyn (a company with foreign participation, which performs mining operations).
- Slamkul Umotaliev,
- Abdilaziz Dzhakenov,
- Zhyrgalbek Ismailov;
- Abdisamat Zhakenov, who is the director of Construction Company Asia-Project-Seismo (development of construction projects), founder of Agroflorin KG (wholesale trade of chemical products);
- Seiitgazy Asanbaev;
- Allaberdi Umetaliev;
- Zhakypbek Baiymbetov is the ex-director of the National Security Risk Analysis and Forecast Service of GKNB, deputy chair of GKNB. He is also a member of:
- Political party “People’s Democratic Party of Kyrgyzstan”;
- Security agency “Daanyshman Security”;
- KyrgyzGeo Drilling;
- Malik KG;
- Quick Money;
- Alliance Grandstroi;
- Laboon Kozu.
The second place belongs to Medco International for buying medical supplies and equipment. The company earned 185,896 million som in public procurement in 2020, or 2,396 million dollars. The company’s director is Asel Dzhailoeva. She also heads Medical Centre HUMAN.
The third place belongs to Elyai by the value of tenders won in 2020. The total value of contracts was 176,34 million som or 2,27 million dollars. The director is Gulina Aidakeyeva. She is also the founder and director of Dani limited company (wholesale trade of pharmaceuticals). Moreover, this company is not listed among public suppliers of medications of 2019.
The fourth place belongs to UniHelp, which was the leader of purchases in 2019. The aggregate amount of contracts entered into in 2020 was 175,879 million som or 2,267 million dollars. The head of the company is Konstantin Gerasimenko. He is registered as director of six organisations, including three pharmaceutical companies. The remaining two pharmaceutical companies did not take part in tenders in 2019.
And number 5 of top suppliers of medications and equipment is Meer Chop limited company. According to Osoo.kg, director is Kalybek Zheenaliev. He is also the founder of another pharmaceutical company Farmaktiv. In 2019-2020, the company did not take part in public procurement.
Main photo: www.meria.kg