The US Federal Emergency Management Agency (FEMA) has terminated the deal with Panthera Worldwide for the supply of 10 million N95 medical respiratory masks worth $ 55.5 million. 

The company did not fulfill the terms of the deal on time, despite two deferrals, The Wall Street Journal reported.

According to the newspaper, Panthera Worldwide initially pledged to complete the order by May 1. However, the deadline was postponed until May 11. The agency told the publication on Tuesday about the decision to terminate the contract based on the lack of supply. FEMA has refused to grant a new deferral for another four days.

As the newspaper found out, two owners of this company, based in West Virginia, were accused of tax evasion in 2018. Panthera has a subsidiary that provides security training and went bankrupt last year. The company got into the FEMA database as a private organization that received $ 50 thousand under a single contract with the US federal government.

The Wall Street Journal reported last month the US federal authorities had chosen unreliable companies to supply masks for over $ 110 million. Prices for this personal protective equipment were unreasonably high, the newspaper noted.

According to Johns Hopkins University, the US has recorded over 1.36 million COVID-19 cases, while the death toll has reached 82,356.