The College of Medical Laboratory Scientists (CMLS) claimed that despite having received credit facilities and other forms of financial assistance for the purchase of pharmaceutical drugs and medical supplies from a number of institutions, such as the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), and the World Bank (WB), the Ministry of Health continues to default on the payments to regular suppliers and make emergency and non-competitive purchases, which has now become a mafia.
Speaking to The Daily Morning, CMLS President Ravi Kumudesh said: “The shortage of pharmaceutical drugs and other medical supplies is more a result of the need for making commissions than a problem of the economic crisis. In calculating the expenditure for health supplies, a larger amount has been spent than the amount that was spent before the economic crisis. More credit facilities and other forms of financial assistance than ever have been received from many institutions such as the ADB, AIIB, WB, and the Chinese credit line. There is still $ 35 million left unspent from the Indian credit line.”
Despite the receipt of such assistance, he claimed that the Health Ministry has defaulted on payments of about Rs. 40 billion to regular suppliers due to which normal supplies have been disrupted. As a result of the relevant payments not being made, he said that local companies that manufacture drugs and medical supplies are going bankrupt, unable to import raw materials. He said that the financial provisions received from foreign countries and international organisations can be used to settle such outstanding payments, but that a desire to access new suppliers is clearly embedded in the decisions taken by the Health Ministry regarding procurements.
“Emergency purchases, non-competitive purchases, and placing multiple orders for the same requirement have become the latest mafia in the health sector. The relevant officials work to prevent the continuity of normal supplies and undermine local manufacturing processes so that they can make such purchases. Repeated submission of orders is also done. Where 100 pills are needed, 500 pills are ordered. Some officers plan to make five times the commission. There is no one to determine why the first order did not arrive. If all the orders are supplied, we will have to face a huge surplus of drugs in a short time. Otherwise, the orders will have to be cancelled. If that happens, many companies will be in trouble.” added Kumudesh.
As the latest actions by this mafia, he claimed that Health Minister Keheliya Rambukwella is visiting India for unsolicited purchases. “We became bankrupt as a country because the relevant parties built roads and buildings through non-competitive purchases and earned commissions. Therefore, this system should immediately be brought to an end, and flaws in the normal purchasing system should be corrected. The Government should encourage the local production of drugs and medical supplies. Such moves will save about 2/3 of the expenditure on drug and medical supply purchases,” he said.
Meanwhile, it was reported that the Sri Lanka Medical Association (SLMA) and several other colleges, including the Ceylon College of Physicians, the College of Surgeons of Sri Lanka, the Sri Lanka College of Obstetricians and Gynaecologists, and the Sri Lanka College of Paediatricians, had boycotted a meeting chaired by Rambukwella last week to discuss lowering drug prices. They have reportedly pointed out to the relevant authorities the need to resolve drug shortages and stop the purchase of unevaluated drugs.
Rambukwella was not available for comment.
Claiming that an Indian pharmaceutical company had settled the relevant bills, including the hotel bills of Rambukwella during his visit to India from 21 to 24 December 2022 to inspect a pharmaceutical manufacturing factory belonging to the same company, the Frontline Socialist Party (FSP) emphasised that an investigation must be conducted into the matter. FSP Education Secretary Pubudu Jayagoda claimed at that time that Rambukwella had gone to India to confirm the quality of drugs that would be imported into Sri Lanka and build an agreement regarding the import of 28 types of drugs that are not allegedly registered by the National Medicines Regulatory Authority (NMRA).