A project meant to deliver oxygen generators to 55+ public hospitals was hijacked by fraud, inflated budgets, and unqualified contractors. What happened:

• Initial budget: R216M (~€10.8M)→ final cost: R836M (~€41.8M)
• Contracts awarded to firms without proper medical licenses
• Fake documents used, subcontracting hidden, rules bypassed
• Investigations confirmed fraud, mismanagement, and inflated pricing

The result? A vital project collapsed under corruption. Senior officials were dismissed, hundreds of staff investigated, and the Development Bank had to take over delivery to restore donor trust.

What this means for distributors:

For smaller, independent companies across Africa, LATAM, and Asia — this scandal is not “far away.” It’s a mirror.

Procurement is still too often tilted toward the biggest, loudest players — even when they cut corners. Honest distributors find it hard to compete.

But there is one lever: diversification of suppliers. If you have multiple trusted sources, you can build a better offer than monopolists. That’s where real value comes: not in inflated promises, but in verified supply, speed, and trust.

Our position:

At Medem LTD, we believe procurement should protect patients, not exploit them. We work with distributors who want:

• Original equipment only
• Transparent sourcing and proof before payment
• Alternative channels to strengthen tender bids

Closing note:

This scandal may yet push reforms toward transparency and accountability. We hope it does. But until then, smaller distributors can protect themselves — and win — by choosing reliable, diversified supply partners.

Because in procurement, trust is not a “nice to have.” It’s the difference between success and scandal.