By Ennety Munshya and Linda Soko Tembo
An investigation by MakanDay reveal troubling details about Ace Pharmaceutical, the company contracted to deliver 138 ambulances and previously tasked with supplying malaria test kits worth nearly K254 million.
Ace Pharmaceutical, the company awarded a tender by the Zambia Medicines and Medical Supplies Agency (Zammsa) to supply 138 ambulances, had previously secured another lucrative contract which it failed to fully deliver last year.
According to MakanDay’s investigation, the earlier contract required the company to supply malaria rapid diagnostic tests (RDTs) valued at nearly K254 million.
A well-placed source at Zammsa, speaking to MakanDay on condition of anonymity for fear of losing his job, revealed that the agency currently has only a one-month supply of RDTs. These test kits are critical for Zambia’s population, especially in rural areas where access to laboratory services is limited.
The shortage has raised serious concerns about Ace Pharmaceutical’s ability to meet its contractual obligations and ensure the timely delivery of essential health supplies.
Zammsa has confirmed that the current stock of RDTs, comprising 215,601 packs (equivalent to 5.4 million tests), is expected to last just over a month, based on the adjusted forecast for the peak malaria season.
Zammsa’s senior manager for corporate communications, Bradley Chingobe, told MakanDay that the government has procured an additional 56,000 packs (1.4 million tests), which are scheduled to arrive in the country on January 25, 2025.
“This incoming stock is anticipated to significantly bolster the existing supply,” Chingobe said in response to MakanDay’s query.
The source revealed that Ace Pharmaceutical had already received a 25% (K63,464,400) down payment of the total contract amount, valued at K253,857,600, for the RDTs.
He also disclosed that between May and June last year, the company delivered RDTs worth over K121.1 million. However, the remaining consignment, which was due for delivery before the end of the year, has yet to arrive, leaving Zammsa still awaiting the outstanding shipment.
The source further revealed that the Procurement Supply Chain Management (PSM) under the Global Fund has stepped in to procure and additional 250,000 RDTs, with expedited delivery expected by the end of January this year. This urgency likely arises from concerns over the government supplier’s repeated failures to fulfill delivery commitments, the source said.
These test kits are essential in rural health centers, ensuring accurate diagnoses and appropriate treatment, especially during the rainy season when malaria cases peak.
Earlier contract
In the latest tender awarded to ACE Pharmaceutical, the 138 ambulances were split into two contracts: 60 are under the Ministry of Health, while 78 are for the Ministry of Local Government and Rural Development, funded through the Constituency Development Fund (CDF). Both contracts were procured by Zammsa, the government’s medical storage and distribution agency.
The contract for the other 78 ambulances under the CDF was awarded to Aqueous Investment Limited, a company registered for retailing computers, peripheral units, software, and telecommunications equipment in specialized stores, rather than motor vehicle dealings, according to Patents and Companies Registration Agency (Pacra) records.
According to the Thursday, January 23 edition of the Daily Mail, a government-owned newspaper, 18 more CDF ambulances have arrived in the country, bringing the total to 29 out of the 156 ambulances procured under the CDF. The paper reported that the 18 ambulances that arrived on Thursday, are part of the 36 expected in the second consignment.
It remains unclear whether the 18 ambulances fall under the ACE Pharmaceutical or Aqueous Investment contract.
The Ministry of Health has not responded to MakanDay’s request for comment regarding the 60 ambulances contracted to ACE Pharmaceuticals.
However, in a statement issued on January 7, 2025, Minister of Health Dr. Elijah Muchima revealed that ACE Pharmaceutical, the company involved in the delayed delivery of the ambulances, has also been engaged for the current procurement of 60 ambulances but has not yet been awarded the contract.
“This matter has been referred to the Main Procurement Committee (MPC) under the Zambia Public Procurement Authority (ZPPA) to ensure due diligence is followed before any decisions are made,” said Dr. Muchima.
Meanwhile, Chingobe at Zammsa said the process of awarding the contract for the 60 ambulances is still ongoing, and no final decision has been made. This is contrary to what a source at Zammsa told MakanDay.
He said the evaluation for the 60 Ambulances has recently been concluded and is currently under the review of the Zammsa Procurement Committee (ZPC).
“This stage involves thorough scrutiny, after which a final decision on awarding the tender will be made. As it stands, no company has been awarded the 60 MOH (Ministry of Health) ambulances tender so far,” said Chingobe.
The little we know about ACE Pharmaceuticals
Ace Pharmaceutical was founded by Surjit Singh Sahani, who serves as the CEO and is the sole individual featured on the company’s website.
According to the website, Sahani oversees the company’s operations and expansion into various markets. He relocated to Zambia in 2014 to join the Avacare Group and later became the CEO of Infinity Group.
When MakanDay reached out for comment using the phone number listed on the company website, the person who answered promised a response but subsequently became unresponsive and has been avoiding our calls.
A MakanDay journalist who visited Ace Pharmaceutical’s office in Garden Compound, along Katima Mulilo Road, found it locked and seemingly deserted. A security officer, speaking on condition of anonymity, disclosed that the office is rarely occupied and mainly serves as a storage facility. The officer disclosed that the company has been in existence for two years but has never been fully operational, with staff occasionally visiting to store or retrieve items for deliveries.
According to the company registration agency, ACE Pharmaceutical Ltd was registered on March 24, 2022. The registered shareholders and directors are Panetta Masala, Sandile Piwase Stephanie Banda, while Manjit Singh Basan is listed as a director.
Despite company law requiring all registered companies to disclose their beneficial owners, ACE Pharmaceutical’s beneficial owners are not listed in the company registry.
Photo Credit | Zammsa Facebook Page
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