HSE owed more than €35m in ventilator refunds

The medical devices had become the most in-demand piece of equipment across the planet as concerns in relation to Covid-19 rocketed in March of last year. Photo: AP/John Minchillo

The HSE is owed more than €35 million in refunds for orders of ventilators from China, the vast majority of which were never received, according to an internal audit report.

The audit, which began in September 2020 and was finalised in June of this year, was commissioned to investigate the emergency procurement of ventilators from Asia at the beginning of the Covid-19 pandemic, after regular, trusted supply lines had become congested.

It concludes that “the level of assurance that may be provided to management about the adequacy and effectiveness of the governance, risk management and internal control system in the area reviewed is UNSATISFACTORY”, the most serious descriptor applied by HSE internal audit, indicating there is “a serious and substantial risk that the system will fail” which requires “urgent action”.

The report, released to the Irish Examiner under Freedom of Information, found that €81 million in pre-payments was made to 10 suppliers operating from China and previously unknown to the HSE between March 20 and April 7, 2020, for the provision of 2,194 ventilators.

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This was despite just €73.5 million having been approved by the Department of Health to that end, for the procurement of 1,900 machines.

The medical devices had become the most in-demand piece of equipment across the planet as concerns in relation to Covid-19 rocketed in March of last year, amid fears that a shortage of ventilators would prevent seriously ill patients being treated.

Of the 2,194 ventilators ordered, just 465 ventilators costing €10.1 million were delivered to the HSE, none of which were ever deployed in clinical situations.

Of the remaining €71 million, refunds for cancelled orders of €29.3 million were received, while €9.1 million was converted to an order for Personal Protective Equipment (PPE).

The HSE said that €35.2m in refunds is still outstanding from four of the 10 suppliers - comprising €32.4 million worth of devices which were never delivered, and €2.8 million in ventilators which were received but which the HSE wants to return to the supplier in exchange for a full refund.

All four of those suppliers are now the subject of ongoing legal action, the report said.

Minister for Health Stephen Donnelly said we should remember the context surrounding the procurement of these ventilators 

Minister for Health Stephen Donnelly said he welcomed the audit.

"It's very important that the HSE is doing these audits, in fact last year I ordered a similar audit into PPE, there was a huge amount of money spent on PPE."

Speaking to Morning Ireland, the Minister said it was important to remember "the context" when looking back at their procurement last year.

The government was being "screamed at" by the Opposition, by Government, by the media, by everyone in the country to get these ventilators in "at all costs."

He said it was "very easy" for the auditors to criticise but the "reality"  was that the HSE had to procure ventilators from all over the world in a "war-like situation."

It was a very real concern that Ireland would run out of ventilators, he said.

When asked whether due process have been followed, he said "of course.. but I think we have to look at what happened in those times and remember that we were all demanding that at any cost we get those ventilators in to protect people in the country."