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Sunday, 18 July 2004  
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Pharmaceutical companies file action against Health Ministry

by Anura Maitipe

Pharmaceutical companies which had quoted for tenders to supply drugs and medicine in liquid form to the Ministry of Health have sought legal action against the Ministry for deviation from the proper procedure in awarding tenders during the UNF regime, Health Ministry sources told the Sunday Observer.

The companies have filed action against the Ministry for awarding tenders by violating the rules and regulations of State tender procedure; 26 such cases are pending in the Courts, sources added. This has resulted in delays of drugs supplies which in turn has created a shortage of drugs in State hospitals. However, to meet the current shortage of drugs in State hospitals, health authorities made local purchases of drugs worth Rs. 200 million last year, sources added.

The Colombo National Hospital has purchased drugs to the tune of Rs. 90 million to meet the shortage, but is still severely short of 14 essential drugs. As a result, hospital authorities have been compelled to make local purchases of drugs at a higher price, sources pointed out.

The sudden drug shortage is due to the delay in the supply of drugs and liquid medicine in time by the State Pharmaceutical Corporation (SPC), the main supplier of drugs and liquid forms of medicine for the State hospitals, sources added.

In addition, the National Drugs Quality Assurances Laboratory (NDQAL) found a large quantity of inferior quality drugs imported by the SPC in 2000. The NDQAL had disposed these stocks resulting in huge losses to the State coffers while creating an undue scarcity of drugs in the state hospitals, sources said.

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