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Millions of funds wasted in SPC

DailyMirror

In another instance related to alleged state mismanagement and corruption, the State Pharmaceuticals Corporation (SPC) had wasted Rs. 515 million in 2008, according to the Auditor General’s Report.

Besides, the SPC had failed to recover loans running to the tune of Rs.660 million during the year.

The SPC had destroyed drugs worth Rs. 15 million and medical equipment worth Rs. 3 million due to inferior quality. Also, according to the report, controversy surrounds the transaction of Rs.1.6 million for the renovation of a circuit bungalow in Badulla.

In 2008, the Medical Supplies Division had not accepted six million syringes due to unsatisfactory quality, compelling the authorities to destroy them eventually. The SPC had issued a notice for the supplier to pay Rs. 17 million as the cost of this stock. However, the supplier had not made the payment during the stipulated time.

Similar financial misappropriation had been reported in the purchase of drugs such as Salbutamol Tablets B.P. 4 mg and Elastic Adhesive Bandage BP.

There was a total loss of Rs.9.1 million at 21 SPC outlets operating in the country. A loss of Rs. 12 million had been reported in 2007 from 20 outlets that were in operation at that time. 

UNP MP Wijeyadasa Rajapakse raised this issue at the last Parliamentary Consultative Committee of the Health Ministry early this month.

New Health Minister Maithripala Sirisena had ordered the Ministry Secretary to carry out investigations into the financial embezzlement at the SPC and submit a report to the next meeting scheduled for the next month.

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