Medikit Corporation Participates in New Tenders Despite Fraud Allegations at Government Employees Hospital

Medikit Corporation, a contractor, has been accused of breaching tender conditions and engaging in fraudulent practices while supplying MRI and CT scan equipment to the Government Employees Hospital in Dhaka. According to the tender terms, the country of origin, manufacturing, and shipment of the equipment were required to be the same, specifically from Japan, Mexico, South Korea, or Norway. However, Medikit violated these conditions by shipping the equipment from Singapore and allegedly tampered with documents to conceal this discrepancy.

The fraud was uncovered in the hospital’s GD-10 package for equipment procurement. After evidence of the violation and forgery surfaced, the hospital issued a show-cause notice to Medikit. The company failed to provide a satisfactory response, leading to the cancellation of its experience certificate. However, no further action, such as forming an investigation committee or blacklisting the company, was taken. Surprisingly, within a few months, Medikit was allowed to participate in five new tenders, raising concerns among hospital staff.

Several doctors and healthcare workers at the hospital expressed outrage, stating that fraud in the procurement of critical diagnostic equipment poses a significant threat to public health. Accurate diagnosis is essential for effective treatment, and such malpractices could compromise patient care. They alleged that Medikit was given opportunities to participate in new tenders due to corrupt practices involving commissions. Documents obtained by Kalbela reveal that on July 26, 2023, the hospital signed contracts with two contractors under the GD-10 package to supply equipment within six months. The tender, issued on March 6, 2023, saw participation from multiple companies, including Bangladesh Science House, Daffodil Medi World, Lifestream International, Medi Graphic Trading Limited, and Medikit Corporation. Medikit secured the contract for supplying MRI and CT scan equipment at the lowest bid of BDT 379.8 million, despite lacking prior experience in supplying such heavy medical equipment. The then-project director, Farhad Hossain, stated that the lowest bidder was selected as per tender rules, leaving no room for discretion. In another tender, Overseas Marketing Corporation (OMC) won a contract worth BDT 62.4 million to supply various equipment, including auto-biochemistry analyzers and others. OMC has faced allegations of misappropriating BDT 500 million during the COVID-19 pandemic by overpricing testing kits. Despite these allegations, both Medikit and OMC were awarded contracts, allegedly due to commission-driven decisions. Following the fall of the Awami League government, the hospital’s expansion project saw a change in leadership, with Md. Siddiqur Rahman appointed as the new project director. A review of past procurement records revealed Medikit’s fraudulent practices in the GD-10 package. Despite this, the company faced no significant consequences and was allowed to participate in new tenders (GD-12A, GD-12B, GD-11B, GD-11C, and GD-11E) issued on March 25, 2025. Allegations suggest a syndicate within the hospital is facilitating Medikit’s involvement in these new contracts. Efforts to contact Medikit’s owner, Shameem Ashrafi, for comments were unsuccessful. The current project director, Md. Rafiqul Haque, stated that the previous director had canceled Medikit’s experience certificate, and necessary actions are being taken under the Bangladesh Public Procurement Authority (BPPA) regulations.