Lobamba – Members of the Public Accounts Committee (PAC) were left stunned after discovering that the Ministry of Health exceeded its budget by more than E89 million through emergency procurement of drugs and medical supplies, with some items reportedly inflated by over 34 000%.
Auditor General Timothy Matsebula revealed that the Ministry paid E8 288.24 for medical equipment valued at just E29.00 and E1 125.59 for an injection that normally costs E22.00. He said these purchases were made from local suppliers outside the framework contracts previously approved by government.
Matsebula told the committee that the Ministry initially issued purchase orders under the framework system, but when suppliers failed to deliver, officials bypassed standard procedures and turned to emergency procurement. The result, he said, was grossly inflated prices and a significant loss to public funds.
“The cost of supplies procured under emergency procedures is excessively high compared to framework contracts,” he said. “The price variance per requested size ranged from 4% to 34 226%. The total cost incurred was E51.9 million on pharmaceuticals and E37.3 million on medical supplies.”
Principal Secretary in the Ministry of Health, Khanya Mabuza, admitted that the problem arose when contracted suppliers failed to deliver despite being awarded tenders. He said the Ministry was forced to use emergency procurement to prevent a nationwide shortage of essential medicines in hospitals and clinics.
Procurement Specialist Lovemore Magagula added that emergency procurement gave suppliers the upper hand. “When we buy through emergency tender, we approach individual suppliers who charge whatever they want, and government has no choice but to pay,” he said. “Under normal tendering, government sets the prices according to the available budget, which makes it more affordable.”
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