The Office of the Auditor General’s report for 2023 said that $871m worth of drugs which have been paid for were still to be delivered as of September this year.
Western Scientific Company at $291m and New GPC Incorporated at $224m were the major defaulters.
The report tabled in the National Assembly on Thursday said that “Outstanding deliveries amounted to $5.466 billion as at December 2023. As at August 2024, deliveries totalling $2.106 billion were delivered leaving a balance of $870.955M of Drugs and Medical Supplies paid for and yet to be delivered. Similarly, as it relates to 2022, $147.605M is yet to be delivered”.
The report said that the sum of $9.396 billion was allotted under Line Item 6221 – Drugs and Medical Supplies, while an allotment transferred to this Line Item totalled $149.560M resulting in a total of $9.545 billion.
The table below summarises the payments to suppliers, deliveries, and outstanding deliveries at the time of reporting in September 2024:
As noted in the table above, outstanding deliveries amounted to $5.564 billion as at 31 December 2023, subsequently, deliveries received amounted to $2.106 billion at the end of August 2024.
The Head of Budget Agency stated that the outstanding deliveries of $871M were due to supply chain issues and space constraints at the MMU bond.
In addition to the amounts outstanding for 2023, the Auditor General’s report said that outstanding deliveries for the year 2022 totalled $147.605M at the end of August 2024, as shown in the table below:
In response, the Head of Budget Agency stated that the Ministry is currently working with the suppliers to close these contracts. The Audit Office recommended that the Head of Budget Agency take action to ensure that suppliers of Drugs and Medical Supplies honour their contractual obligations.
The report also said that billions of dollars worth of drugs expired between January 2023 and June 2024.
“During the period January 2023 to June 2024, a quantity totalling $3.228 billion were expired and disposed of by the Ministry of Health. In addition, a quantity totalling $2.332 billion were still on hand to be disposed” of.
