A Chinese auto company that sold California millions of protective masks must reimburse the state $247.5 million by the end of the week.
California was thrust into the national spotlight after it came to light that the state made a deal with Chinese electric car manufacturer BYD Auto to pay $3.30 per mask in a deal made under a $1 billion coronavirus response contract.
Officials within Gov. Gavin Newsom’s administration remained quiet about the details of the deal, leading to frustration by some state lawmakers seeking further information. On Wednesday, however, the governor unveiled the contract.
According to the Los Angeles Times, the company must reimburse the state about half of what they already paid for masks to be delivered this month due to a one-month delay in the certification of N95 masks. The state had sent a first installment of a $495 million deposit for the speedy delivery for some N95 masks to arrive this month, but the masks need to be approved for effectiveness by the National Institute for Occupational Safety and Health and may not be ready on time.
The reimbursement will be done through the company’s U.S. subsidiary in Los Angeles.
In the contract, $990 million was set aside to purchase a total of 300 million N95 masks over a two-month period. An additional 54.9 million will go to purchase another 100 million surgical masks. The contract allows the state to extend it until beyond June 30 with the same price point of $3.30 per mask.
Newsom said he believed the delay was likely due to the masks never being manufactured by the company before.
