Health Ministry clarifies report on non-delivery of drugs, medical supplies

Jun 04, 2019 News

The Ministry of Public Health, (MoPH) has clarified its position on the no delivery of drugs and medical supplies, purchased in 2015.
In its 2018 report, the Public Accounts Committee, (PAC) had highlighted problems with the award of contracts and the distribution of drugs and medical supplies by the Ministry of Public Health.
The report was recently laid over in Parliament, the PAC noted the issues regarding drug suppliers, who failed to deliver drugs and medical supplies to the agency in a timely manner are of great concern to the committee.
According to the PAC report, several of the issues, which were highlighted in the 2015 Auditor General report, remain unresolved. In some cases, drugs and medical supplies purchased are still to be delivered.
Permanent Secretary, PS, of the MoPH Collette Adams noted that the Ministry had responded to queries about delivery of drugs and medical supplies dating back to 2015 in the Auditor General’s 2017 report. Adams noted that some of the cheques are in the process of being disbursed.
“What happens in some cases, there is a delivery schedule so the drugs or supplies don’t come all at once. Therefore the cheques remain on hand to be released to the suppliers over a period of time that the deliveries are made.
Adams noted too that some of the information contained in the PAC need to be updated.
The report should have included a response because the Ministry would have provided it since 2017. But what happens is the information from the previous reports keeps reappearing in the document each year so it appears as though the Ministry has not taken any action or provided an explanation. That is not the case, the Ministry has responded.
Meanwhile in its response to the queries contained in the 2017 AG report, the Health Ministry explained that drugs and medical supplies valued at $12.352 M were delivered during 2018. The sum of $25.982 M is still to be delivered.
In the report, the Ministry admitted that the balance should have been remitted to the consolidated fund and the adjustment made to the book and accounts records.
However the report stated that the Ministry did not comply with the terms of the Fiscal and Accountability Act which states that at the end of each year the unexpended balance should be remitted to the Consolidated Fund.
The PS noted that in many cases, there is already a contractual arrangement in place between the Ministry and the supplier, so rather than having to return to Parliament for the money every time it is needed. The cheques remain on hand to pay for the drugs as they are delivered.
In 2018 report, the PAC noted in December 2015, the total of $38M was spent on drugs and medical supplies by the Region while the Minister of Public Health expended $5.371M. The PAC noted that the issue was reoccurring which needed to be addressed by the relevant persons and agencies.
A previous AG report had noted that six suppliers received full contract sums totaling $163M in 2012. However, they failed to deliver drugs and medical supplies totaling $114M. These are still outstanding for the year 2012.
These companies include Productos Roche, Caribbean Medical Supplies, Trans Continental Ltd and Henry Schien Inc. In a related matter, the New GPC Inc. was still to supply a total of $12M worth of deliveries in respect of the year 2011.
The Budget agency of the then Ministry of Health had acknowledged that the deliveries are still outstanding. It was subsequently recommended that the Ministry take immediate steps to have the contractors fulfill the obligations under the contracts for the years 2011 and 2012.
The AG’s report also stated that in 2013, the Ministry expended $2.7 billion for pharmaceutical and medical supplies.
The procurement of pharmaceutical and medical supplies by the Ministry of Health was based on awards by the National Board of Procurement and Tender Administration to the New GPC Inc. and other local and international agencies involved in the supply of drugs and medical supplies.
In relation to the 2013 purchases, the transactions with New GPC included ten contracts valued at $2.4 billion of which freight charges totaling $180.496M were included in three contract sums.

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Health Ministry clarifies report on non-delivery of drugs, medical supplies

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