… As health ministry buys directly from manufacturer
By Confidente Reporter
THE Ministry of Health and Social Services has drastically cut its antiretroviral drugs expenditure by over 35 percent, after directly buying from an International manufacturer, instead of purchasing the life-saving drugs locally.
This translates to savings amounting to N$19 463 833, after the manufacturer charged N$36 105 020, while local suppliers charged N$55 568 853 for 11 types of the ARV drugs.
These savings form part of effective steps to curb unnecessary expenditure, following treasury cuts to government’s budget.
The cuts are part of fiscal measures taken in the face of global eco¬nomic headwinds that have seen the Namibian dollar weakening against major currencies.
There has also been a dwindling in revenue from the Southern African Customs Union (SACU), among other factors.
Treasury cut N$300 million from the health ministry’s budget, which led to tighter controls of its limited resources, in order to stay afloat and render its mandatory services.
Documents in Confidente’s possession show that local suppliers increased their prices from 2012 to 2017, a situation that caused the ministry to go directly to the manufacturer, in order to save costs.
The manufacturer is not named in the documents at hand.
While senior officials have vowed to purchase the drugs from the manufacturer, the decision has reportedly infuriated local suppliers, who feel the ministry is not supporting them.
“As much as the ministry tries to support local suppliers, their prices have made it difficult, because of limited financial resources. It is much cheaper to purchase the drugs directly from the manufacturer, because the ministry stays afloat, as well as lives up to its core mandate, which is rendering health services to the masses,” said a senior health ministry official on condition of anonymity.
Confidente. Lifting the Lid. Copyright © 2015