Medical firm says it is still chasing HSE for part of multimillion-euro sum over Covid-era deal

Medical devices company Narooma Limited is still taking steps to recover a multimillion-euro sum due from the HSE over a collapsed ventilator contract during the Covid-19 pandemic, newly filed accounts have indicated.

The Dublin-based firm, owned by John Ward, sued the HSE in April 2020 when the health service did not provide a payment for 350 ventilators it agreed to acquire in a deal worth €7.5 million.

In May last year, a ruling by the International Chamber of Commerce International Court of Arbitration ordered the HSE to pay Narooma Limited close to €2.77 million over the breach of a contract related to the procurement of the ventilators.

New accounts filed by Narooma Limited said the HSE was liable to pay the company the principal sum of about €2.7 million “together with simple interest at 2 per cent per annum from March 19th, 2021” until the date of payment.

The ruling also said the HSE was liable for the company’s full costs of the arbitration and legal and procedural costs.

Last year, the Irish Examiner reported the additional compensation owed would bring the HSE’s total bill up to almost €6 million as a result of the case.

On the date the latest Narooma financial statement was approved, October 14th this year, the company was still “taking steps to recover the amounts awarded”, according to a note in the accounts.

An HSE spokeswoman said it could not comment regarding any award in that arbitration as a result of its confidentiality obligations.

“We confirm that the HSE has discharged any applicable payments (including interest) pursuant to such award,” she said.

The company’s accounts show it made a profit of €1.8 million in its latest financial year, which ended last March 3rd. The Irish Times understands the profit made during the year was partly linked to the HSE paying some of the sum owed to Narooma Limited.

Ward told The Irish Times he could not comment on the arbitration award.

The €1.8 million profit recorded by Narooma Limited pushed the company into the black, with the firm now sitting on accumulated profits of close to €1.7 million.

At the end of its financial year in March, the firm booked €1.8 million of cash at bank and had total assets less current liabilities of close to €1.7 million.

In addition to its case taken against the HSE in 2020, the company also took a High Court action against IDA Ireland in relation to the ventilator deal in October 2020.

Court records show Narooma Limited’s case against IDA Ireland was listed for mention last Friday and was adjourned with a further mention listed for November 27th.

In a statement, Ward said his company had plans to press ahead with this separate High Court claim against IDA Ireland.

“Narooma Limited is bound by the confidentiality agreement governing its arbitration with the HSE, so we cannot comment on the details,” Ward said.

“We are pressing ahead with our separate High Court claim against IDA Ireland for tortious interference with our commercial interests regarding the same matter.”

An IDA Ireland spokeswoman said: “As this is a matter before the courts, IDA Ireland is precluded from commenting at this time.”

Narooma Limited, which has listed Ward as its only director, is solely owned by the Dublin-based businessman.

Ward is also a director of three other companies, including a start-up called Servblock Limited, which uses blockchain technology to assist pharma sector manufacturers with quality compliance.