CANADA TERMINATES $222 MILLION PPE CONTRACT FOLLOWING FORCED LABOUR PROBE.

Chandrayee Roy Choudhury, Canada

Public Services and Procurement Canada has terminated two supply contracts with Supermax Healthcare Canada following allegations that the nitrile gloves it manufactured in Malaysia for use by Canadian health care workers were made with forced labour.

        These contracts for synthetic rubber medical gloves, worth over $222 million, were part of the $8 billion push led by former procurement minister Anita Anand to equip Canadian health care workers with the personal protective equipment they needed during the COVID-19 pandemic.

        Based on the seriousness of the allegations and expected timelines for the final audit results, the Government of Canada has decided, and Supermax Healthcare Canada has agreed, to terminate by mutual consent the two existing contracts for the supply of nitrile gloves,"

        Based on the seriousness of the allegations and expected timelines for the final audit results, the Government of Canada has decided, and Supermax Healthcare Canada has agreed, to terminate by mutual consent the two existing contracts for the supply of nitrile gloves.

        American officials banned shipments of gloves manufactured by Supermax Corporation Bhd. and its subsidiaries based on information that "reasonably indicates their use of forced labor in manufacturing operations." The U.S. investigation identified 10 of the International Labour Organization's indicators of forced labour.

Malaysia provides an estimated two-thirds of the world's supply of disposable medical gloves. (China is the other major global manufacturer.)