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TOPLINE
Maryland canceled a $12.5 million order of masks and ventilators and asked law enforcement to criminally investigate the company they ordered from, which has ties to a former Republican fundraiser who raised tens of millions for the GOP.
Protective masks shown hanging in a car.
dpa/picture alliance via Getty Images
KEY FACTS
According to reports, Maryland agreed to buy about 1.5 million N95 masks and more than ventilators for more than $12.5 million in early April from a company called Blue Flame Medical, founded in late March by former Republican fundraiser Mike Gula, who raised tens of millions of dollars for Republican candidates over a decade.
According to a purchase order seen by The Wall Street Journal, the state paid Gula a 50% down payment (about $6.2 million), with an agreement that the shipment would be in by late June.
Maryland officials told The Wall Street Journal the order was cancelled Friday because a full month had passed since the order was made and the state had still received no shipment confirmation.
Spokespeople from the Maryland Attorney General’s office declined to comment, but did confirm they received a referral about the contract.
Gula maintains the supplies are coming and he has until June 30 to deliver them under the contract, telling The Baltimore Sun that the contract was still on.
The Wall Street Journal reported that Gula provided documents that appear to show Blue Flame Medical ran into issues with getting the masks out of China, where they were produced, and papers that appear to document Gula made a new order from another manufacturer.
KEY BACKGROUND
The market for medical gear has been chaotic during the pandemic, as states and hospitals compete to buy the necessary gear for frontline workers treating coronavirus patients. The Maryland deal isn’t the first time Gula and Blue Flame Medical appear to have had a hard time in the coronavirus gear business. The Wall Street Journal reported a deal with Henrico County, just outside of Richmond, Virginia fell through when the company wanted to charge $300,000 for shipping, roughly the size of the county’s whole order. Alabama state officials told The Wall Street Journal that the firm also had once had a contract with the state, but that it had been cancelled and Alabama’s deposit was refunded.
WHAT TO WATCH FOR
The Wall Street Journal reported that Gula’s partner, John Thomas, said the company has been in discussion to provide sports leagues with hand-sanitizing stations, disinfectant wipes and face masks for sports fans to use when they return to stadiums.
FURTHER READING
Maryland Cancels Big Coronavirus-Mask Order (The Wall Street Journal)
Maryland seeks investigation of politically-connected company that failed to deliver masks, ventilators (The Baltimore Sun)
Republican fundraiser looks to cash in on coronavirus (Politico)
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