MILLIONS of dollars in drugs and medical supplies are still to be supplied, years after they were procured by the Health Ministry, the Auditor General has revealed in his 2015 Report on the Public Accounts of Guyana.It was disclosed that the New Guyana Pharmaceutical Corporation (GPC) was still to deliver drugs and medical supplies valued at $11.863M for the year 2011. Additionally, six other suppliers had failed to deliver drugs and medical supplies totalling $114.002M for the year 2012.

However, amounts totalling $98.750M were delivered during 2015, resulting in a balance of $15.252M being outstanding as at September 10, 2016.

The trend continued in 2013. According to the Auditor General’s Report, amounts totalling $435.344M were paid to 21 local and overseas suppliers for the delivery of drugs and medical supplies in 2013, but as at September 10, 2016, only $264.848M in goods were delivered.

“The outstanding goods, valued at $75.453M, were due to eight suppliers not fully honouring their obligations,” the Auditor General explained.

Additionally, in 2013, New GPC Inc. was awarded 10 contracts with a total value of $2.374B, of which freight charges totalled $180.496M. However, the company has failed to comply with the contractual agreement in its entirety. In September 2015, goods valued at $136.637M were still outstanding in relation to two contracts. However, goods valued at $91.640M were supplied to the Health Ministry, resulting in outstanding deliveries of $44.997M still to be supplied.

National Procurement and Tender Administration Board (NPTAB) approvals were seen for procurement of drugs and medical supplies in 2014, but no NPTAB approvals were seen for the New GPC. Payments totalling $975.591M were subsequently made to 29 local and overseas suppliers, but as at September 10, 2016, drugs and medical supplies totalling $26.133M were still outstanding.

“The Ministry sought and was granted a waiver by NPTAB, on 25 February 2015, to award a contract to New GPC Inc. in the sum of $14.572M for drugs and medical supplies, (which) were supplied during (the period) April to December 2014 to the Materials Management Unit (MMU), Kingston. However, it could not be determined who (had) authorised the supply of the drugs and medical supplies,” the report pointed out. However, further documents revealed that the drugs and medical supplies were purchased for Government officials whose identities were not disclosed.

Insulin, Chlorophan Expectorant, One Touch Ultra, infusion sets with needles, Go-Diovan, Coreg, blood pressure apparatus, Allegra and other miscellaneous drugs and medical supplies were among the items procured for Government officials.

“In addition, audit checks revealed that the receipt and issue of these drugs were not recorded in the records of MMU, Diamond,” the report said. It noted that the auditor could not have determined the propriety, accuracy and/or validity of the amount expended.

In all of the instances where drugs and medical supplies were outstanding, the Audit Office recommended that the Public Health Ministry take immediate action to have contractors fulfill their contractual obligations under contracts awarded to them.