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IVIG import fraud company owner re-remanded

IVIG import fraud company owner re-remanded

16 Nov 2023

The owner of the company which allegedly used forged documents to import a batch of substandard human intravenous immunoglobulin (IVIG), has been further remanded until 29 November.

The suspect Sugath Janaka Fernando known as Aruna Deepthi, who was arrested by the Criminal Investigations Department (CID), was first placed in remand custody after being produced before the Maligakanda Magistrate’s Court on 1 November.

On 30 October, the Court imposed overseas travel bans on the owner of the company, accused of using forged documents to import a batch of vials of substandard immunoglobulin, and two other high ranking government officials who were allegedly involved in this fraudulent activity. Accordingly, Fernando, the former Chief Executive Officer of the National Medicines Regulatory Authority (NMRA) Dr. Vijith Gunasekera and the Director (Medical Supplies Division) of the Ministry of Health Dr. Kapila Wickramanayake were barred from flying out of the country.

Earlier this month, the NMRA said that forged documents were found to have been submitted for Customs clearance when importing the drug which later failed the quality tests.

The product, which was said to have been manufactured by Livealth Biopharma (Pvt.) Ltd. India, was imported by a local medicine supplier called Isolez Biotech Pharma AG (Pvt.) Ltd. However, the India based manufacturer has denied having anything to do with this fraudulent activity and has communicated to the NMRA that it has neither manufactured, supplied, nor exported these products to any party.

It was found that funds amounting to Rs. 130 million were misappropriated through the unlawful importation of 22,500 vials of IVIG.

The local medicines regulator recently said that the situation came to light following reports of allergic reactions after the drug was administered to several patients being treated at the Colombo National Hospital and the Matale District General Hospital on 22 August and 16 September, respectively.



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