Drugs scandal at NatPharm

Random audits by Treasury have revealed “missing of large quantities” of medicines procured by the National Pharmaceutical Company (NatPharm) amid suspicion that some of the stocks could be finding their way to private pharmacies.

NatPharm procures medicines on behalf of government hospitals. But well-placed sources said there had been a huge mismatch between stocks paid for and stocks distributed to health institutions.

“(If) you go to pharmacies at government hospitals, you cannot find drugs; you try to do reconciliation; they can’t account (for the medicines that have procured) …and you get no proper explanation,” said a top Treasury official, who requested not to be named citing protocol issues.

“There is a need for an investigation and the Treasury will push for that. But the little information that we have so far gathered; we are informed that some of the medicines are being sold to private pharmacies; but of course that is not conclusive.”

No comment could be obtained from NatPharm by the time of publishing.

In December 2020, representatives from NatPharm, the Ministry of Health and Child Care, the Auditor General, civil society organisations and development partners held a virtual workshop to discuss the challenges of corruption at NatPharm and to identify ways to strengthen anti-corruption in the company.

Officials at NatPharm have on several occasions faced corruption allegations including bribery, theft and fraud.

The former Minister of Health and Childcare Dr Obadiah Moyo was charged with awarding a tender of US$20 million to a Hungary-registered firm without going through the proper procurement process.

In July 2020 seven NatPharm managers were fired for allegedly awarding a US$60 million tender to Drax International – a company which was less than two weeks old.

Lack of accountability on the disbursed public funds has become a huge challenge.-ebusinessweekly