Petition against Health Ministry move to procure meds from private firms
Transparency International Sri Lanka (TISL) this week petitioned the Supreme Court against the Health Ministry moves to procure medicines from private companies through unsolicited proposals, bypassing regulatory oversight.
The case was filed in the public interest. It names 47 respondents in relation to steps taken by Cabinet, the Health Minister and Ministry of Health (MoH) and the National Medicines Regulatory Authority (NMRA) to purchase supplies form two Indian private companies.
The petition challenges the role of Cabinet in procuring medical supplies through unregistered private supplier and non-compliance with procurement guidelines, including the emergency procurement process, TISL said. It also highlights the abuse of process by the Health Minister and Chief Executive Officer of the NMRA.
TISL alleges in the petition that citizens’ fundamental right to equality and the right of access to information have been violated, along with serious disregard for the health, safety and well-being of the people and in total abuse of public trust and public funds. It seeks further information on these transactions.
The petition seeks interim orders against the procurement based on these unsolicited proposals and the placing of any orders; against approvals for waivers of registration for 38 drugs; against the importation of said drugs into Sri Lanka; and against making payment for such drugs.
The Commission to Investigate Allegations of Bribery or Corruption, the DirectorGeneral of Customs, the Inspector-General of Police, Savorite Pharmaceuticals (Pvt) Limited (SPL), Kausikh Therapeutics (P) Limited (KTL) and the Attorney-General are also named as Respondents in this petition.
The petition points out that, notwithstanding the intensely public nature of the issue, there was “palpable culture of secrecy” surrounding the procurement.
The Health Minister purportedly sought Cabinet approval to use the Indian credit line (ICL) and other unspecified means of funding “to ostensibly maintain an uninterrupted supply of medicine”. On two occasions he proposed the names of SPL and KTL as identified suppliers from whom certain medicines would be procured and imported to Sri Lanka.
The Minister proposed the names to Cabinet despite the companies “not having the requisite registrations by the NMRA, and in the complete absence of a competitive procurement process”. The Health Ministry then sought a waiver of registration from the NMRA to import the items from the two companies.
“It is categorically stated that the conduct of the Minister of Health reeks of bias, procedural irregularity, preference and/or partiality towards a single supplier, absence of integrity and total disregard for the need to provide fair, equal and maximum opportunity for eligible interested parties to participate in procurement, while ensuring transparency, and consistency in evaluation and selection procedure,” the petition holds.
It refers also to a private tour the Minister undertook with the NMRA CEO to the factory of KTL, a supplier from whom the Minister sought to procure medical supplies to Sri Lanka whilst circumventing procurement processes.
“It is manifest that the Minister of Health has taken a keen personal interest in KTL, and has proceeded to act with unrestrained bias in proposing the name of KTL, a hitherto blacklisted, unregistered supplier to procure medical supplies to Sri Lanka, notwithstanding the serious ramifications on the health, safety and well-being of the general public which consumes such supplies,” the petition states.
“The purported severe imminent shortage of medical supplies that the Minister of Health alludes to as the justification for procuring medical supplies from SPL and KTL, must be evaluated in a context where several such medications, purportedly listed as essential, are not essential,” it continues.
“The utilisation of resources for procurement, whether through the ICL or by other means of funding, must necessarily be used in trust for the public, to ensure maximum benefits to the public,” TISL maintains.
“The exercise of powers in this manner would require the use of the ICL or any other means of funding being utilised to procure the highest quality of medical supplies at the lowest cost, to ensure optimum benefit to the general public, particularly in view of the prevailing crisis relating to the dearth of foreign exchange in the country to finance imports,” the petition states.