‘Buy local’ pharmaceuticals initiative under review

M

inistry of Trade and Industry and players in the pharmaceutical industry have resolved to review a memorandum of understanding (MoU) on the Pharmaceutical Buy Malawi Strategy whose implementation was suspended this year.

The Public Procurement and Disposal of Assets Authority (PPDA) suspended the MoU after noting that some clauses in the agreement were contradicting other laws such as the Competition and Fair Trading Act.

Speaking during a stakeholders’ meeting in Blantyre yesterday, Ministry of Trade and Industry Principal Secretary Francis Zhuwao said the government is committed to do everything possible to ensure successful planning of the new MoU once it is signed.

He said: “So, as a next step from this process, a meeting will be convened where the reviewed MoU will be presented and, thereafter, may be signed by stakeholders.

“I would like to encourage everyone to take the review process seriously to ensure that we produce a document that is fair to both the government and the [pharmaceutical] industry.”

Central Medical Stores Trust (CMST) was identified as the key entity in implementation of the strategy and it entered into framework agreements with, among others, the Pharmaceutical Manufacturers Association of Malawi (Phamam).

A similar MoU was also signed with Victoria Pharmaceutical Industry Limited for the supply of syringes with signatories to the agreement being the Ministry of Health, Ministry of Finance, CMST and Phamam.

CMST chief executive officer Chikaiko Chadzunda was not available for comment on the sidelines of yesterday’s meeting in Blantyre.

But PPDA director of capacity development Timothy Kalembo yesterday said the regulatory body observed that the framework agreements were not in line with certain laws which led to numerous inefficiencies.

He said, among others, there was no clear method used to engage Phamam except for the MoU’s.

“From the reports we have been receiving from CMST there are evaluation reports which are indicating that when you make price comparisons, they could find an item procured from this arrangement having a higher price than an item which is procured locally using some members who are not in the arrangement,” said Kalembo.

In the foregoing, he said PPDA concluded that the principle of value for money was not realised; hence, subsequently suspending the MoU and recommending for a review.

In general, the Buy Malawi Strategy as a whole was launched in 2013 to enhance competitiveness of local firms.