Massive “overprocurement”
The federal government disposes of 230 million scrap masks in China
04/06/2023, 12:15 p.m
The Ministry of Health has defective masks disposed of in China. The procurement debacle costs a lot of money. More than 60 million euros are due for lawyers’ fees alone.
The chaotic mask shopping at the beginning of the 2020 corona pandemic has another expensive aftermath. As the business magazine “Capital” reports, around 230 million protective masks owned by the federal government are currently stored in China and cannot be used due to defects. “There is currently no plan for introduction” to Germany, writes the Federal Ministry of Health in its response to a small inquiry from the Left Group, which “Capital” has received. Instead, the ministry wants to have the goods disposed of directly in China. An order for this has already been put out to tender.
The department of Minister Karl Lauterbach did not provide any information on the acquisition costs of the masks, which failed quality tests in China. A breakdown of the financial contract volume is “no longer possible,” says the answer.
In 2021, the Federal Court of Auditors determined that the federal government had paid an average of almost 3 euros for KN95/FFP2 masks from China. For surgical masks, the average was 0.50 euros. The answer does not reveal which mask types are involved in the defective goods stored in China to this day. According to the Ministry of Health, around 370 million masks failed the quality tests in China.
Under the then Health Minister Jens Spahn, the federal government had ordered masks for 6.5 billion euros in view of a shortage of masks in the early phase of the pandemic. The Federal Court of Auditors later reprimanded a massive “overprocurement”.
“Bizarre Rain of Money”
According to its own statements, the Ministry of Health is trying to get money back from the dealers by filing lawsuits in China, at least for a small part of the scrap masks that were already sorted out before they were transported to Germany. To this end, it has initiated arbitration proceedings against eleven suppliers at the China International Economic Trade and Arbitration Commission (CIETAC). It is about 108 million masks with an estimated total value of around 132 million euros and around 63 million dollars, according to the answer to the small inquiry. However, experts believe that the prospects of success for Western governments in pursuing arbitration suits in China against local companies and enforcing claims are manageable.
Legal disputes with numerous mask suppliers in Germany and China have already incurred more than 40 million euros in legal advice costs by the end of 2022. According to its current answer, the ministry expects further fees for law firms of 20 million euros for 2023. “The hit-and-run mask purchase is still costing millions to the state treasury’s feet,” said left-wing financial politician Christian Görke “Capital”. “The junk masks are becoming a bizarre rain of money for law firms.” The mask shops under former Minister Spahn must be “urgently and comprehensively clarified.”