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Monday, July 26, 2021

Ha Tinh medical supplier under probe for alleged price gouging

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HCMC – Investigators of Ha Tinh Province have begun an inspection into Ha Tinh Medical Products JSC for allegedly selling industrial laundry equipment to four hospitals in the province at artificially inflated prices of VND12 billion, nearly VND6 billion higher than those quoted in Hanoi.

Findings from the investigators indicated that the company purchased four industrial washer-dryer combos from The One Vietnam JSC, which is located in Hanoi’s Cau Giay District, from August to December 2018 at VND523.6 million per combo.

After acquiring the equipment, Ha Tinh Medical Products Company sold the combos to four general hospitals in Can Loc, Duc Tho, Huong Son and Thach Ha districts.

Of the four washer-dryer combos, the two firms only signed a contract for one combo sold to Thach Ha District General Hospital, while the remaining combos were sold to the other three hospitals without any signed contract.

Ha Tinh Medical Products Company had made complete payments for the equipment to The One Vietnam.

However, to inflate the prices of the equipment and regularlize invoices, Ha Tinh Medical Products Company signed a contract with Bao Anh Medical Equipment JSC, whose headquarters is also in Hanoi, to purchase the four combos at VND10 billion, with value added taxes taken into account.

The Ha Tinh medical firm then sold the combos to the four hospitals at VND12 billion and all the hospitals paid in full for the purchases.

The police are working on the case and also requested the provincial Tax Department to look into the amount of tax that Ha Tinh medical firm evaded after this allegedly irregular deal.

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