AG Report highlights deficiency in delivery of goods to Health Ministry

Oct 18, 2016 News

A tradition of late or delayed supplies has for a number of years plagued the health sector.
This has manifested itself by a situation of late or delayed delivery of goods to the Ministry of Health. In fact there are reports that suggest that some suppliers are yet to fulfill the delivery mandate.
This state of affairs has been amplified in the Auditor General Report of the fiscal year ended 2015.
Among the suppliers that have been holding out on the Ministry, in terms of supply, has been the New Guyana Pharmaceutical Company Inc. (New GPC). Based on the details of the Report, in 2013 the New GPC was awarded 10 contracts valued at $2.374 billion of which freight charges totalled $180.496M. It was revealed that as at September 2015, goods valued at $136.637M were still outstanding in relation to two of the 10 contracts.
But while goods valued at $91.640M were received since then, the Report has outlined that there were outstanding deliveries of $44.997M at the time of reporting.
It was expected that the outstanding supplies would have been forthcoming by last month.
This publication was unable to ascertain whether this commitment has been met. The Ministry has, however, assured that reconciliations are being done.
According to the Audit Office, it is recommended that the Ministry takes immediate action to have contractors fulfill their contractual obligations under the contracts awarded to them.
But the New GPC has not been the only defaulting supplier.
While the Report highlighted that the New GPC was still to deliver drugs and medical supplies valued at $11.863 million for the year 2011, it was revealed that a total of six suppliers failed to deliver drugs and medical supplies totalling $114.002 million for the year 2012.
The named suppliers are Product Roche, Caribbean Medical Supplies, Trans Continental Ltd., Henry Schien Inc., Pan American Health Organisation (PAHO) and SHIMADZU.
It was, however, noted that the named suppliers were collectively able to deliver goods amounting to $98.750 million during 2015. But as at September 10, last, there was an outstanding balance of $15.252 million.
In 2013, amounts totalling $435.344 million were paid to 21 local and overseas suppliers for the delivery of drugs and medical supplies. As at September 10, 2015, goods valued at $257.972 million were delivered on the contract.
But during the course of 2015 and 2016, additional goods valued at $6.876 million were delivered, bringing the total goods delivered to as at September 10, 2016 to $264.848 million.
The outstanding goods, valued at $75.453 million, were due to eight suppliers not fully honouring their obligations which totalled $6.556 million.
Among the still outstanding suppliers, as at the time of reporting, were: International Pharmaceutical Agency, Meditron Scientific Sales, PAHO, Bryden PI Ltd., Caribbean Medical Supplies, Henry Schien and Patterson Medical.
It was further revealed in the Report that in 2014, National Procurement and Tender Administration Board (NPTAB) approvals were seen for procurement of drugs and medical supplies in relation to suppliers other than the New GPC Inc. In this regard, payments totalling $975.591M were made to 29 local and overseas suppliers.
But as at September 10, 2015, it was revealed that a number of suppliers were yet to fully satisfy the supply goods. It was noted that the outstanding goods amounted to $84.696M.
The defaulting suppliers named in the Report in this instance are: PAHO, CKC International Commodities, Caribbean Medical Supplies Inc., Patterson Medical, Trans Continental Meds. Pro. Inc., Ansa McAl Trading Ltd., Biomed Energy Ent., Diamed Caribbean Inc., One World Accuracy Inc., Global Health Care Supplies Inc. and Meditron Scientific Sales.
But it was noted that at the time of reporting in September 2016, deliveries valued at $58.561 million were received by the Ministry, leaving a balance of $26.133 million still outstanding.
While the Ministry has also assured that reconciliations are being done, the Audit Office has recommended that that Ministry continue to engage the suppliers as a matter of urgency to have the outstanding drugs delivered.

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AG Report highlights deficiency in delivery of goods to Health Ministry

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