The Island
The government suffered a loss of Rs. 450 million in 2008 due to the import of low quality and outdated drugs, the Auditor General has revealed in his report submitted to Parliament last week.
The Sri Lanka State Pharmaceutical Corporation supplied 16 million syringes to the Medical Supplies Division of the Health Ministry in 2008 and the whole lot was found to be of inferior quality and unfit for use. All the syringes were destroyed. That alone cost the Pharmaceuticals Corporation Rs 17.5 million.
Meanwhile, when it was found that bandages supplied to the Medical Supplies Division were of inferior quality, action was initiated to return bandages worth Rs 1.25 million to the supplier and recover the money. However, the supplier has intimated to the health authorities that they needed proof that the bandages were of low quality and whether the supplier had defaulted on any single condition agreed upon prior to the supply. Under such circumstances the Auditor General has stated that this amount too has be considered a loss to the State.
AG has further pointed out that a loss of more than 106.11 per cent over the previous year was incurred on medical goods acquired in 2008.
Furthermore, due to non-clearance of goods on time the Corporation had to pay Rs 15.3 million as demurrage.