Health ministry's procurement is chaotic
Overpriced medicines led to shortages
The ministry of finance has found that purchases of overpriced medications significantly contributed to the Central Medical Stores running out of stock.
The ministry of finance’s Procurement Policy Unit (PPU) has advised the ministry of health to rein in heavy spending on pharmaceutical and clinical supplies.
A study by the PPU found that purchases of overpriced medications and other clinical supplies significantly contributed to the Central Medical Stores (CMS) regularly running out of medicines.
To mitigate risks related to the ministry’s procurement spending, the PPU recommended that it develop a procurement plan tied to the Medium-Term Expenditure Framework (MTEF) period under which purchase orders may be placed to boost supplier confidence in the government.
“The accounting officer [is] to provide a finance certificate to ensure availability of funds over three years, to allow for establishing three-year framework agreements under which purchase orders may be placed,” the PPU recommended.
The PPU also recommended that the ministry put in place long-term purchase agreements tied to the MTEF for competitive procurement.
“Put in place three-year framework agreements based on budgets indicative MTEF estimates, consider the use of freely convertible currencies and item-price publication to attract international bidders,” the PPU said.
The ministry of health was also urged to motivate for bigger budget allocations to help fund pharmaceutical and clinical supplies.
“In line with improvements in fiscal space, the ministry of health to lobby for more resources for pharmaceutical and clinical supplies while Central Medical Stores should develop and implement a debt reduction strategy,” said the PPU.
The ministry was also urged to conduct routine internal audits at the Central Medical Stores and to ensure that recommendations are fully implemented.
A study by the PPU found that purchases of overpriced medications and other clinical supplies significantly contributed to the Central Medical Stores (CMS) regularly running out of medicines.
To mitigate risks related to the ministry’s procurement spending, the PPU recommended that it develop a procurement plan tied to the Medium-Term Expenditure Framework (MTEF) period under which purchase orders may be placed to boost supplier confidence in the government.
“The accounting officer [is] to provide a finance certificate to ensure availability of funds over three years, to allow for establishing three-year framework agreements under which purchase orders may be placed,” the PPU recommended.
The PPU also recommended that the ministry put in place long-term purchase agreements tied to the MTEF for competitive procurement.
“Put in place three-year framework agreements based on budgets indicative MTEF estimates, consider the use of freely convertible currencies and item-price publication to attract international bidders,” the PPU said.
The ministry of health was also urged to motivate for bigger budget allocations to help fund pharmaceutical and clinical supplies.
“In line with improvements in fiscal space, the ministry of health to lobby for more resources for pharmaceutical and clinical supplies while Central Medical Stores should develop and implement a debt reduction strategy,” said the PPU.
The ministry was also urged to conduct routine internal audits at the Central Medical Stores and to ensure that recommendations are fully implemented.
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