Moorosi Tsiane
INDIAN company, Verobien Healthcare Private Limited, has dismissed allegations that it was corruptly awarded a US$3 million (about M44.6 million) contract in 2018 to refurbish medical equipment in government hospitals across Lesotho.
Speaking to the Lesotho Times this week from India, Verobien Director, Vineet Arora, said they only became aware of the corruption claims after reading the newspaper’s recent article titled “Indian firm demands M13 million from gvt.”
Dr Arora said the company has been pursuing a US$712,730.75 (around M13 million) payment still owed by the Ministry of Health. He suspects the corruption allegations are a convenient excuse to avoid paying the outstanding balance, especially now that Verobien has taken the matter to court.
Verobien filed its case in the Commercial Division of the High Court a fortnight ago, seeking an order to force the government to pay the US$712,730.75 balance.
However, it appears the tender award itself has been under scrutiny since it was issued. The Ministry of Health allegedly bypassed proper procurement procedures in granting the deal, sparking a fierce fallout between then Health Minister, Nkaku Kabi, and his Principal Secretary (PS), Lefu Manyokole.
Mr Manyokole had just been appointed PS for Health after serving as Principal Private Secretary to then Prime Minister Thomas Thabane. Upon reviewing the contract, he refused to authorize further payments to Verobien, which had already received around M25 million for its work. He flagged concerns about cost inflation, most notably, the jump from the original M33.4 million to M44 million.
He accused the company of inflating local logistics costs and questioned its claims about having supplied “first-class” medical equipment. Citing “corrupt inflation”, of tender costs, he declined to sign off additional payments. Minister Kabi, however, reportedly pressured him to approve them.
When Mr Manyokole refused, he was abruptly removed from the Ministry of Health and reassigned as Cabinet PS for Economic Affairs, a move widely seen as a demotion. At the time, Mr Manyokole accused Minister Kabi of being “deeply corrupt” and claimed he was being punished for standing up to wrongdoing.
The Directorate on Corruption and Economic Offences (DCEO) last week confirmed it was investigating the matter.
This week, Dr Arora insisted his company had done nothing wrong and was shocked by the allegations.
“We followed due process. It was an open tender. We submitted all our credentials to both the Ministry of Health and the Indian authorities. We were the lowest bidder and were awarded the contract accordingly.”
He questioned the timing of the corruption claims.
“It has been five years. If there was any corruption, why has nothing been proven in all that time?” he asked.
Dr Arora said Verobien had kept the Lesotho High Commission in India informed of all communications with the Ministry of Health, particularly regarding the unpaid balance.
“This only became an issue because we are demanding payment for the work we have done. We were never contacted by anyone about any investigation. All our discussions have been with the Health Ministry, which initially acknowledged the debt but blamed budget constraints.”
He said the company had even gone above and beyond its contract by assisting the Ministry during the COVID-19 pandemic.
“Our engineers even helped set up COVID-19 wards in 2020 as a humanitarian gesture, though it was not part of our contract.”
According to Dr Arora, the problems began even before installation. Verobien had sent detailed site preparation requirements in March 2019, but many sites were not ready by the time their engineers arrived in June 2019. Despite the delays, most equipment was installed, and the company remains ready to complete the work once payment is made.
“The first payment of US$1.75 million (M25.7 million) was made via Letter of Credit in June 2019 after we shipped the goods. The second payment of US$697,120.63 (M10.2 million) came in November 2019. Since then, we have received nothing.”
He said the remaining amount of US$711,985.44 (M13 million) was acknowledged by the Ministry during a virtual meeting last year, where officials said it would be paid in two phases due to budget issues. But after that, the ministry went silent, he said.
“We had no choice but to pursue legal action. We even proposed a compromise: pay 90 percent of the balance now, let us return to finish the installations, and release the remaining 10 percent afterwards.”
Dr Arora said Verobien had submitted all the necessary documentation and was confident their bid was the most competitive.
“We have done projects in many countries and work with various industry chambers. We have been transparent throughout. If there was any issue with our bid or performance, it should have been raised long ago. Not now when we are fighting for our hard earned money,” Dr Arora said.
Mr Kabi has declined to comment on the matter. Instead, he criticised the media for spreading lies about him while addressing mourners at former Government Secretary Moahloli Mphaka’s memorial service last week.
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