RM1.56m worth of medicine contracts bounded by LoA

FIVE OUT of 45 medicine procurement contracts made by the Ministry of Health through tender or quotations worth RM1.56 million was not bound by a formal contract but guided by Letter of Acceptance (LoA).

The 2015 Auditor-General’s Report (Series 2) revealed that although the management of medicine supplies in the ministry was generally satisfactory and achieved its objectives there were some weaknesses that need to be addressed.

It also revealed that 31 LoAs for procurement contracts audited at State Health Departments (JKN), District Health offices (PKD) and state pharmacy logistic affairs branches (CFLN) were signed after the contract commencement date between six to 34 days.

It said that penalty claims due to medicines “late delivery under APPL (Approved Price Product List) and the ministry’s procurement contract” were still pending and there was no penalty clauses provided in the event of a late delivery on medicine supplies made through direct purchases.

The report added that acceptance of medicines in six locations were not verified at 100% capacity and the medicine stock layout in CFLN/PKD/MOH’s pharmacy store did not comply with the stipulated procedures.

It also revealed that the store’s security was less than satisfactory as medicine stocks were kept in an unlocked room with an unlatched back-door as well as not observing the ceiling limit for stock level at below 50cm.

In addition, there were a few stores with cracked/broken/torn off ceilings, leakages in the air conditioning system and had unavailable or expired fire extinguishers.