Blacklisting calls for corrupt companies
MANZINI – There are suggestions that some of the implicated companies in the alleged corrupt dealings with government on the procurement of medical drugs could face the consequence of being blacklisted.
Government has been advised to follow consequence management with officials responsible for fruitless and wasteful expenditure.
This is a recommendation contained in the Forensic Audit Report on the Acquisition and Distribution of Medicines to Public Health Facilities in Eswatini, which was presented in Parliament for adoption on Monday by the Minister of Finance, Neal Rijkenberg.
The report further recommends that government should consider proper quantification and institution of legal claims against responsible entities embroiled in the loss of money valued at E75 million.
This was said to be a means to recover E68 million, which constituted duplicate payments as well as E7 million representing fraudulent claims of donated trial drugs.
The recommendation states that the outcome of the proposed actions could be achieved through instituting disciplinary action.
Quantification
It was also stated that government should consider proper quantification and institution of legal claims against responsible entities, which should result in the recovery of losses or damages.
These recommendations are set to address the challenge of orders that were not fulfilled amounting to about E517 million and also drugs that expired amounting to about E83 million. On the finding that some officials were helping suppliers for procurement collusion, government should institute disciplinary action against the implicated officials and also civil claims against the implicated entities.
On the other hand, regarding some officials receiving gratification and/ or cash incentives or payments from suppliers, it was said government should institute recovery of undue payments made to certain suppliers. This, it was said, had an implication of blacklisting the implicated providers.
To deal with the duplicated orders paid for which amounted to fraud, some officials changing labels for suppliers and some officials accepting expired drugs contrary to protocols, government had to recreate the management structure at CMS and institute interim measures such as an administrator.
The implication of this recommendation, it was said, was to institute interim measures for the administration of Central Medical Stores (CMS).
To deal with the inadequate systems at the CMS, which entails the drug and medicines ordering, stocking, receipt and supply being described as grossly inadequate and exposing government to huge losses, it was recommended that government should conduct a systems review and overhaul to create a robust, automated system with all relevant fields for the ordering and management of drugs.
The implications of this recommendation were said to be the factoring in a legislation and new model to deal with these.
Processes
On the other hand, there was a finding that the manual systems for the management of the process are not appropriate for the control environment. Instead, it was recommended that CMS should replace all manual systems and processes and substitute them with automated processes.
The implication of this act, it was said, where applicable or required, CMS should integrate the NAVISION system with the newly-designed model.
This, it was said, was because the NAVISION system had some weaknesses and required strengthening and/or integration with a newly-designed system or model.
To deal with the finding of improper variances to contract values, lack of independent probity reviews in engaging suppliers of drugs and medicines, it was recommended that the variation to contract values be authorised by the Tender Board and appropriate authority within the Treasury. It was said the implication of this would be to revise the CMS procedures to accommodate this step and the probity review process.
System
Meanwhile, on the finding that there was a lack of drug testing facilities for quality assurance of supplied drugs, it was recommended that government should institute a system of independent probity reviews to ensure proper and impeccable supply chain management processes.
It was said government should explore the possibility of establishing a drug quality testing facility or mechanism.
Also, on the finding of unjustified above inflation increases amounting to 20 per cent, it was recommended that government should institute a process towards the acquisition of a drug testing facility for quality. This, it was said, would keep adjustments within the inflation level.