(Mark Pellin, Headline USA) While pushing unpopular and ultimately counter-productive mask mandates and vaccine passports, New York Democrat Gov. Kathy Hochul last year inked a deal to have one of her major campaign supporters sell COVID testing kits to the state for hundreds of millions of dollars more than other companies that bid on the contract.
“Digital Gadgets’ tests cost $12.25 each compared to $5 each for the first 5 million tests the state bought from iHealth ($5 each),” according to Reinvent Albany, citing a report uncovered by the Times-Union.
“The second most expensive vendor was Spectrum Medical, whose tests cost $7.80 each. The state ultimately paid out 5 times more to Digital Gadgets than it did to any competitors.”
The Times-Union reported in July that Tebele and his family members have donated nearly $300,000 to Hochul’s campaign, including a $70,000 gift last year that was made as Hochul’s administration signed two purchase orders to buy $637 million in COVID tests.
To further ingratiate himself to Hochul, Tebele also hosted a campaign fundraiser for her in April.
Hochul’s office signed the exorbitantly expensive deal with Digital Gadgets on the same day that Tebele made the proposal, agreeing to pay the firm $12.25 per test kit, versus just $5 per kit under a deal the administration had just approved with another company, according to the Times-Union.
“The Hochul administration is saying it was not because they were a donor,” said Bill Hammond, senior fellow for health policy at the Empire Center for Public Policy.
“But [the administration] should answer the question of why they so eagerly got into business with this very high-priced vendor — and bought more than half their total amount from this one supplier — when they knew it was charging a much higher rate than they had been paying.”
Hammond isn’t alone with his questions and concerns.
“The sheer volume of the purchase multiplied by the inflated price has cost New Yorkers hundreds of millions in unnecessary spending,” said New York Republican Assemblyman Ed Ra.
New York Assembly Republican Leader Will Barclay called for an investigation into how the deal was allowed to transpire without proper oversight.
“This administration orchestrated the purchase of millions of COVID-19 test kits – well above market price – from a major campaign donor to the governor, and the people of New York deserve to know why, and how, that happened without any bidding or oversight,” Barclay said.
“At the very least, the public deserves a hearing to address how this deal was arranged, why it lacked a formal contract and the seemingly questionable timing of relevant communications.”
