……large quantities of drugs got lost
……E7 million paid to a service provider yet drugs were donated
……duplicate payments to suppliers amounting to E68 million, suppliers submitted false claims
BY MBONGENI NDLELA
MBABANE – Could the findings of the Funduzi report on drug shortage be the reason why Eswatini experienced a severe drug shortage?
The forensic audit into the acquisition and distribution of medicines to public health facilities in Eswatini report has been released.
The report, which was commissioned by the office of the Auditor General and investigated by Funduzi Forensic Services, was today distributed to parliamentarians after the adjournment of the National Budget speech tabled by Minister of Finance Neal.
The report was among the many documents that were distributed to the legislators who were requested to read and prepare themselves for debate as from Thursday, 29 February when parliament resumes business.
The report, which has been seen by this publication, contains a list of findings that led to the country’s health system being plunged into controversy.
However, government through several programs, is working hard to revive and address some of the issues that almost collapsed the country’s public Health. The report has still not been adopted in parliament as it is yet to be debated.
According to the report findings, large quantities of drugs and medicines did not and do not make their way to the public health facilities when they have been paid;
- Certain suppliers as indicated in the report have found a way of abusing the system by dumping stock that has not been ordered knowing that certain public officials will facilitate payment thereof.
- Certain suppliers do not deliver the full stock of drugs despite huge payments being made or expenditures being incurred.
- Certain public officials caused government to incur fruitless and wasteful expenditures in that they have allowed and/or facilitated orders that were out of sync with the demand as dictated by disease profiles and consumer patterns leading to over-stocking and drugs expiring.
- The leadership of CMS caused government to incur losses in that there was a failure to mitigate the theft of drugs and medicines coupled with their failure to follow through on some criminal investigation processes where drugs had been stolen.
- The officials who are listed in the supplementary reports have a case to answer regarding the allegations of conflict of interests, money laundering, corruption, and collusion cited against their names. The conflict of interests relates to amounts of money received by certain officials from certain government suppliers as well as gratification received which violates the prescripts of government.
- The said officials have a case to answer regarding improper gratification and non-declaration of work performed outside the Civil Service as well as gifts or gratification obtained from certain suppliers.
- There were possible duplicate payments made to certain suppliers and in one instance, amounting to E66 million.
- There were possible fraudulent, fruitless, and wasteful expenditures, in one instance, amounting to E7 million paid towards a service provider in response to donated trial drugs, which should not have been paid for.
- Certain suppliers were complicit in the facilitation and receipt of undue payments as evidenced in the duplicate payments processed under one batch.
- Certain suppliers were complicit in the creation of a false claim relating to payment for donated trial drugs (Remdesivir).
- A certain supplier failed to honour the agreement relating to the establishment of a manufacturing facility for drugs as undertaken and contracted in terms of the Memorandum of Agreement entered into with the Kingdom of Eswatini and there were no consequences to this failure.
- There is no credible system in place to manage the ordering, stocking, storage, distribution, and supply of drugs and even the current system is bypassed in favour of the manual system which is susceptible to manipulation.
- The CMS structure is grossly inadequate for the execution of the mandate to manage the ordering, stocking, and distribution of drugs and medicines.
- The ordering patterns do not seem to follow best practices regarding the determination of volumes and quantities to avoid excess stocking of drugs that end up expiring.
- The leadership of CMS does not possess the necessary qualifications for the responsibilities associated with the CMS mandate.
- Drugs with limited shelf life were accepted contrary to the established protocols for acceptance of drugs that have a minimum shelf life of 18 months.
- Certain officials have a case to answer regarding the relabeling of medicines that they performed on behalf of a supplier which may have led to misrepresentation of certain drugs in terms of quality and expiry dates.
- The 20% price adjustment granted to suppliers was unjustified and could essentially amount to fruitless and wasteful expenditure, considering that it fell way outside of the parameters of a reasonable increase in line with CPI and USD exchange rate fluctuations during the period in question.
- Certain suppliers were overpaid, in one instance, to the tune of about E8 million in that they were awarded a tender at E2 million and ended up being paid about E10 million.
