Company accused of offering overpriced medical equipment denies allegations

The Philippine distributor of Chinese firm Sansure Biotech on Friday denied allegations that it offered overpriced COVID-19 testing equipment and kits to the government.

Omnibus Bio-Medical Systems. Inc. dismissed as “fake news” the reports that the company tried to corner the government into buying medical equipment at a high price, which prompted President Rodrigo Duterte this week to order an investigation on its owners for possible violation of the law against profiteering and hoarding.

"Our company adheres to a business practice aimed at providing the best value in life science equipment. We will not tarnish that reputation especially [during] the COVID-19 crisis,” the company said.

"We value our customers and will never engage in profiteering, hoarding, or blackmailing.”

The company confirmed that it offered the automated extraction machine for P4.3 million to the Department of Budget and Management (DBM) on April 23.

However, Omnibus said the package included 25,000 NATCH consumables, which are the plastics that are used to carry out the RNA extraction.

It also included costs such as air transport, destination charges, storage, warehousing, local delivery fees, warranties, as well as peripheral accessories needed to run the machine, preventive maintenance and technical calibration fees, bonds, and retention.

Omnibus offered another package priced at P4 million to the DBM on May 6.

“It was a slightly lower price because the machine and NATCH consumables were priced separately.  That was the only difference. All other additional costs were included,” it said.

“Omnibus was operating within a difficult delivery scenario and rushing to fulfill a possible very short delivery period. With these challenges, the costs added up to P4.3 million (for the NATCH machine with 25,000 PCR consumables) and P4 million (for the NATCH machine alone). Bottom line, Omnibus stands by its statement that they offered a fair price for both packages mentioned.”

Omnibus also explained why the private sector’s Project ARK initiative was able to purchase the same medical equipment for only P1.75 million.

“This was done via a free on board or FOB arrangement. Go Negosyo was the one who paid the additional costs for air transport, destination charges, storage, and warehousing,” it said.

The company added it does not have a monopoly of COVID-19 testing equipment and kits and that “anyone can easily confirm” that Omnibus distributes one of the brands available in the market.

Omnibus also said they did not protest their loss in the government’s bidding process. -NB, GMA News