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Shortages: Auditor General’s report sheds light on many ills in health sector
By Saman Indrajith
The expenditure on medical supplies in the first quarter of 2022 was only Rs. 12.4 billion, a sharp drop from 2020 and 2021, the Auditor General’s Special Report on Procedures taken to avoid the Shortage of Pharmaceuticals in government hospitals by 13 May 2022, has revealed.
The amounts spent on medical supplies during the year 2020 and year 2021 were Rs. 83.5 billion and Rs. 73.6 billion respectively.
The actual quarterly average expenses on medical supplies in 2020 and 2021 were Rs. 20.8 billion and Rs. 18.4 billion respectively, the report has said.
The number of pharmaceutical items used in hospitals as Vital, Essential and Non-essential is 1,146; the number of surgical items is 8,648; the number of laboratory items is 3,900 and the number of the X-ray items is 44.
By 13 May, the number of Vital and Essential drugs out of stock in the Medical Supplies Division and hospitals was 190 and 51 respectively. Besides, 2,724 and 2,156 Vital and Essential surgical items were out of stock in the Medical Supplies Division and hospitals respectively at that time.
The number laboratory items and X-ray items out of stock in the Medical Supplies Division and hospitals was 850 and 18 respectively.The report says the future annual requirement is estimated by the respective hospital authorities based on the consumption and the remaining stocks, and sent to the Medical Supplies Division 13 months prior to the month in which the supply is required.
In the process of procuring medical supplies, the Medical Supplies Division has to send orders to the State Pharmaceutical Corporation for the procurement of estimated items with a supply period of 11 months.
The report has stated that the National Drug Quality Assurance Laboratory was established under the National Medicine Regulatory Authority to assist in the process of verifying the standards of procured medical supplies. Cabinet approval was given, on 15 October 2009, for the five-year Development Plan from 2010 to 2015, which was prepared at a cost of Rs. 410 million to develop the infrastructure and human resources of the National Pharmaceutical Quality Control Laboratory with a view to increasing the number of laboratory tests to check the quality of medical supplies.
According to the Manual on Management of Drugs, pharmaceuticals should be stored in well-ventilated spaces at specified temperatures. The Medical Supplies Division should maintain a secure stock for three months, and in addition to regular checks by a staff officer, sample testing should be done for the confirmation of the accuracy of drug storage and accounting.
The Auditor General’s report has said a number of other factors have contributed to shortages––poorly maintained computer system, lack of proper coordination and coordination between the Medical Supplies Division, the Ministry of Health, the State Pharmaceutical Corporation of Sri Lanka and the State Pharmaceutical Manufacturing Corporation of Sri Lanka, lack of regular monitoring, and progress of orders issued to the State Pharmaceutical Corporation of Sri Lanka and noncompliance with the procurement schedule.
The AG has found that the Medical Supplies Division submitted lists of orders for the respective year to the State Pharmaceutical Corporation of Sri Lanka through MSMIS or PRONTO computer system with a lead time of 11 months, but the corporation had not immediately commenced procurement process for those orders and the procurement was delayed until written copies of the order list were received by the corporation.
It took more than 18 days to send the written copies of the orders to the Import Division of the State Pharmaceutical Corporation, and since procurement had only begun thereafter, part of the supply period of 11 months had elapsed. Pharmacists and senior officials in the Medical Supplies Division placed the order through the computer system, but there had been a delay in sending written documents., the Auditor General has said.
Although 41 orders out of 90 for eight vital items and essential items were issued by the computer system to the State Pharmaceutical Corporation of Sri Lanka in the first two months of the year, it had taken between 18 days and six months for the Import Division of the State Pharmaceutical Corporation to receive the written copies of the order lists, the report found.
This shows that there is a lack of coordination among the Medical Supplies Division, Ministry of Health, State Pharmaceutical Corporation of Sri Lanka and State Pharmaceutical Manufacturing Corporation, which are mainly involved in the management of medical supplies, the Auditor General has observed in his report.
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Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies
by Saman Indrajith and Norman Palihawadane
The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).
Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.
The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.
The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.
“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.
Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.
The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.
The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.
“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.
He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,
along with President Anura Kumara Dissanayake.
Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.
He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.
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