Forex chokes medical supplies contracts
Prevailing foreign exchange shortages in the country have negatively affected procurement of medical supplies and left Central Medical Stores Trust (CMST) unable to get even 50 percent of the contract quantities from suppliers.
CMST chief executive officer Chikaiko Chadzunda told the Public Accounts Committee of Parliament on Wednesday in Lilongwe that companies contracted to deliver medical supplies are facing difficulties to meet the contract demands.
He said: “If you look at our performance, how suppliers are delivering, we are not reaching 50 percent of contract performance by suppliers. The suppliers’ efforts were also affected by Covid-19.”
The companies are supposed to supply 60 percent of the commodities CMST stocks while the trust imports the remaining 40 percent.
Chadzunda said CMST has been engaging the Reserve Bank of Malawi to source forex for importation and ensure availability of drugs.
“On our side, we are fine because the Reserve Bank is providing us with forex, but on the side of the third party suppliers, sometimes we are having challenges that they are not able to meet their delivery schedules because they are claiming that at that particular time they do have forex,” he said.
Asked how big the shortage of stocked drugs is, Chadzunda said CMST runs like any shop and have all medical supplies to supply to hospitals at all times.
He said to address the situation of drugs shortage, part of the drug budget was decentralised so that whenever there is a challenge of stock availability, the hospitals can buy from other sources.
Said Chadzunda: “Currently, the district hospitals have 10 percent budget which they can use whenever we don’t have. Normally the procedure is that they order from us and if we indicate that we do not have that type of drug then they can resort to their 10 percent.
“For central hospitals, they manage their budget 100 percent so that at any time they are free to buy from any other suppliers if Central Medical Stores Trust does not have. So, effectively with that arrangement and if management is really doing their work you should have minimal stock outs in hospitals.”
PAC chairperson Mark Botomani called on government to ensure that there is enough forex for medical supplies to save lives.
Ministry of Health spokesperson Adrian Chikumbe also said forex has been a big challenge in ensuring that hospitals have all that they need. He said even for the must-have list, there are some items that get affected.
“Stocks that should be supplied in 3 months take six months. So there are sometimes not enough stocks because there is no adequate forex,” he said.
Malawi is currently facing forex challenges with the import cover currently at 1.5 months.
