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Suppliers dictate prices amidst scarcity; it’s basic O-level economics – Health Minister on vaccines

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The Minister of Health, Kwaku Agyeman-Manu, has hit hard at critics of the government’s decision to procure Russia’s Sputnik-V vaccines to augment Ghana’s COVID-19 inoculation exercise.

Government’s decision to purchase 3.4 million doses of the Sputnik-V vaccine through two businessmen who are selling it to Ghana at $19 per dose instead of the $10 per dose on the international market has caused a public uproar.

The Minority in Parliament has since called for the abrogation of the contract, while others have called for the dismissal of the Minister on grounds that he wasn’t prudent enough with the handling of the procurement.

But the Minister at the launch of the Pest and Vector Control Association of Ghana in Accra, insisted that the government did no wrong by signing the deal.

He said the government had no choice but to procure the vaccines, given its scarcity at the time.

“Basic economics will tell you that in terms of scarcity the market is the suppliers’ market. He or she dictates the price, not the buyer. I am surprised… we all learnt these things at O-level so why should I be a subject of ridicule”? He asked.

The Minister was speaking on the deal for the first time.

Minority demands abrogation 

The Minority in Parliament has already demanded the immediate termination of the contract.

Ranking Member on the Health Committee, Kwabena Mintah Akandoh said, revelations about the government procuring the vaccines at an expensive price smacks of financial impropriety and cost inflation.

“The minority in Parliament will urge the government to reconsider both terms of this contract with particular emphasis on price and work assiduously through proper diplomatic and approved channels to secure COVID-19 vaccines for Ghanaians.

“This contract is unconstitutional, null, and void and the government should abrogate and refrain from making any payment with respect to this contract before laying the entirety of the contract before Parliament for scrutiny and subsequent approval.”

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