This article first appeared in The Edge Malaysia Weekly on November 20, 2023 - November 26, 2023

The revelation that Pharmaniaga Bhd’s wholly-owned unit Pharmaniaga Logistics Sdn Bhd (PLSB) had refused to comply with a letter of demand issued by the Ministry of Health (MoH) regarding shortcomings in the procurement of faulty ventilators could not have sent the wrong message to the market at a worse time, when the government is trying to court private investments.

On Nov 15, Deputy Minister of Health Datuk Lukanisman Awang Sauni said his ministry sought advice from the Attorney General’s Chambers (AGC) on the appropriate course of action to take against PLSB.

Lukanisman said MoH had issued a letter of demand for the reimbursement of RM15.34 million on Sept 13 and given PLSB 14 days to respond. Instead, the company responded by requesting that MoH withdraw the letter and expressed its readiness to negotiate the outstanding payment of RM1.07 million for the ventilation upgrade project.

The irony is that PLSB can choose to ignore MoH’s demands despite receiving in July a seven-year extension to provide medicines and medical supplies to the ministry, which took effect on July 1, 2023, and will run until June 30, 2030.

Based on PLSB’s recent action, does this suggest that a letter of demand from the government is something a concession holder can choose to ignore? And that the contractor that caused the loss of taxpayers’ money to the tune of millions of ringgit over faulty products can be chosen as a concession holder again?

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