Emergency procurements, the biggest culprit: Kumudesh

By Ashanthi Warunasuriya 

Emergency purchases is the biggest monster which eats up Sri Lanka’s health sector, head of a leading medical institution said yesterday. 

President of the College of Medical Laboratory Science (CMLS.SL) and Academy of Health Professionals (AHP.SL) Ravi Kumudesh said emergency purchases of medicine eats up resources of the health sector. 
“The Health Minister’s recent statement that the difference between emergency and ordinary procurement of medicine is the time spent to get the supplies, amply proves that he is misled by the officials. However, one would be able to understand how emergency procurements have crippled the health sector if a proper study is carried out on emergency procurements,” Kumudesh said. 

“The recent emergency procurement of Cefuroxime vaccine had cost the health ministry Rs. 1 billion. One unit of the vaccine would have cost only $ 0.18 if usual procurement measures were followed. Some 2.5 million units of this vaccine were purchased in June this year.

However, the tender was not awarded to the lowest bidder. This bidder had quoted $ 0.21. 
The second bidder quoted $ 0.80. Some made an effort to award the tender to the second-lowest bidder, but it failed, and the tender was apparently cancelled. 

A second tender was called within the same month. However, the National Medicine Regulatory Authority (NMRA) only registered one company. The companies which bid the lowest prices were shut out of the competition. Since the company which quoted $ 0.80 enjoyed a monopoly, their price was jacked up to $ 2.00. Accordingly, the Health Ministry had to purchase the vaccine at $ 2 per unit. The total losses incurred was Rs. 1 billion,” he alleged. 
“In addition, the ministry had procured Ensiphorene has been at Rs 1,000 though it could have been possible to purchase it at Rs 175, one tablet of insulin has been purchased at Rs 1,100 though the real cost of it is Rs 200,” he also alleged.