Scarcity makes suppliers dictate prices, it’s basic O-level economics – Health Minister

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Kwaku Agyeman-Manu, Health MinisterKwaku Agyeman-Manu, Health Minister

•Mr Agyeman-Manu has hit hard at critics of the government’s decision to procure Russia’s Sputnik-V vaccines

•He explained that suppliers dictate prices amidst scarcity

•The Health Minister believes Ghana has not been shortchanged

The Minister of Health, Kwaku Agyeman-Manu, has rubbished claims that government procured Russia’s Sputnik-V vaccines at a higher price.

There has been a public uproar on the country’s decision to purchase 3.4 million doses of the Sputnik-V vaccine through two businessmen who are selling it to Ghana at $19 per dose instead of the $10 per dose on the international market.

This development has made the Minority in Parliament call for the abrogation of the contract as well as the dismissal of the Minister.

Addressing a gathering at the launch of the Pest and Vector Control Association of Ghana in Accra, Mr Agyeman-Manu insisted that the government did no wrong by signing the deal.

He said the government had no choice but to procure the vaccines, given its scarcity at the time.

“Basic economics will tell you that in terms of scarcity the market is the suppliers’ market. He or she dictates the price, not the buyer. I am surprised… we all learnt these things at O-level so why should I be a subject of ridicule?” he asked.

A report by a Norwegian newspaper published on June 3, 2021, alleges that the Ghana government has signed a contract for the purchase of Sputnik V vaccine with an Emirati official which it said was involved in the controversial Ameri power deal and a Norwegian citizen charged with money laundering in Norway.

The newspaper alleges that Ghana is buying the Sputnik V COVID-19 vaccine produced in Russia for $19 per dose from businessmen instead of $10.

According to the report published on www.vg.no, government signed the purchase contract for 3.4 million doses of the vaccine.

Meanwhile, ranking Member on the Health Committee, Kwabena Mintah Akandoh, said, revelations about the government procuring the vaccines at an expensive price smack of financial impropriety and cost inflation.

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