Britain's Crown Agents has commented on accusations of holding medicine and medical product procurement tenders using 2015 and 2016 budgets voiced in media.

"We believe that we must present the official information in response to the published statements," Crown Agents told Interfax-Ukraine.

Commenting on the statement that procurement using 2015 budget funds was held only in 2016, the agency said that the agreement between Health Ministry of Ukraine and Crown Agents on the procurement of medicines, medical devices and reagents for the adult and child oncology and oncohematology programs in the amount of about $32 million from the 2015 national budget was signed on November 6, 2015.

"The tender process began on December 6, 2015 in accordance with the terms of the agreement, supplies were delivered throughout 2016 and were completed within the period specified in the Agreement, December 6, 2016," Crown Agents said.

Commenting on a statement that public funds were on the company accounts during a year, Crown Agents said that funds for the procurement of medicines funded by the state budget 2015 were transferred in December 2015 on the company’s dedicated account for managing client funds.

"This account has a special status: funds cannot be transferred to any other accounts, written off or sent to deposit. Payments to suppliers were made for each individual supply from this account during the year 2016. Crown Agents’ fee was charged only after the delivery and payment to suppliers was completed," the agency said.

Commenting on a statement "work through distributors instead of the promised procurement from producers" the agency said that supplies of medicines, reagents and medical devices within the oncology programmes from the state budget 2015 were delivered by 29 companies, of which 45% are direct producers. 70% of delivered products had SRA approved status (medicines regulatory agency for the EU, United States and Japan).

"Thanks to the work of international organizations who carried out the procurement funded by the state budget 2015, for the first time 40% of tender participants were domestic producers, which is more than in the past years," the agency said.

Commenting on statements that 20% VAT exemption from distributors on imported medicines resulted in big delays in the timing of deliveries, Crown Agents said that regulation of taxation for domestic distributors is a prerogative of the state, and this process lies in the sphere of the legislation.

"There are different interpretations of the current mechanism of exemption of import supplies of medicines from VAT for the Ukrainian pharmaceutical distributors. Resolving these issues is far beyond the control or influence of the international company Crown Agents," the agency said.

"The majority of Ukrainian distributors who delivered supplies of medicines and medical devices for oncology and hematology programmes from the state budget 2015, had no questions about the Ukrainian legislation concerning VAT payment," Crown Agents said.

"Only one Ukrainian distributor [Lyudmila Pharm LLC] created a problem and this resulted in delayed deliveries of a number of positions for pediatric oncology programme. This problem was resolved due to the interventions of the Ministry of Health of Ukraine, the SBU, the state enterprises Ukrmedpostach and Ukrvaccina, the Ministry of Finance of Ukraine, State Customs Service of Ukraine, deputies and Crown Agents.

No one went to court regarding the issue, Crown Agents said.

Crown Agents’ remuneration under the agreement on procurement by the state budget 2015 was 5.5% of the value of procurement and not 7%. Under the Agreement on procurement by the state budget 2016 the company’s remuneration will be 5%.

Crown Agents is an international development company that partners with governments, aid agencies, NGOs and companies in nearly 100 countries.