Sunday, September 12, 2004

AG REPORT: GOVERNMENT OVERPAID FOR MEDICINE


Medicine Overpaid by Govt Posted by Hello

66.5% OF GOVERNMENT TENDER GIVEN TO ONE SUPPLIER & PRICE IS 36% HIGHER


The Government is paying up to 36% above market price for certain medicines used in public hospitals and clinics. This was reflected in the Auditor-General’s Report 2003.

The report revealed that 140 contracts worth $425mil were awarded during 2001 and 2003, 83 contracts worth $283mil (66.5%) went to ONE supplier while the balance were distributed among 11 others (33.5% spread among 11 companies).

Only a few companies had been accorded agent rights which led to monopoly of suppliers and the Government had no choice but to accept their bids.

Delays in processing tenders which could take up to 327 days, had also forced the ministry to pay more for medicines.

The tender system is designed such that only a selected few will be allowed to participate in the procurement cake and those that participate in the tender can actually gang-up and collaborate to ensure all participants receive benefits (only 12 of them were awarded in the last 3 years).

Isn't the system designed to ensure corruption can be legitimized and kleptorism to succeed????

Another Malaysia Boleh Idealism.

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