Allegations that the Ministry of Health, under the former administration, prioritised payments to larger pharmaceutical suppliers while smaller companies waited months for their money dominated Monday’s meeting of the Public Administration and Appropriations Committee.
The meeting was held to examine the State’s acquisition of pharmaceuticals, focusing on the current processes for importation and approval.
At the meeting, it was revealed that the National Insurance Property Development Company Limited (NIPDEC) was instructed to pay larger pharmaceutical companies millions of dollars, while smaller suppliers struggled with long-outstanding invoices.
The Chairman of the Public Administration and Appropriations Committee, Jagdeo Singh, questioned the Head of Finance and Accounting at NIPDEC, Jabari Cozier, on the matter.
Mr. Singh said, “A lot of the smaller players, their invoices were outstanding for quite a long time, 180 days, 210 days, months, if not years. Do you agree with me?”
Mr. Cozier replied, “Yes.”
Mr. Singh continued, “But yet, the NIPDEC was being instructed by the Accounting Officer of the Ministry of Health to pay one company 50 million out of an 80 million allocation.”
The NIPDEC Manager noted that, through email instructions from the Ministry of Health under the former administration, NIPDEC adjusted allocations, sometimes removing smaller suppliers from the payment list.
Chairman Singh asked, “So two companies who NIPDEC found it was fair to pay a certain sum of money, but then instructed not to pay those companies any money at all but to redirect those funds to the payment of the bigger players in the sector. Am I not correct?”
Mr. Cozier responded, “Correct.”
When asked by Committee Member David Nakhid if the company had advocated for the smaller pharmacies, Mr. Cozier said attempts were made.
“Yes, the pushback would have been always sending the Ministry our recommendation to allocate it to everybody, to get a proportionate share of what was being paid. So that was our pushback.”
Mr. Nakhid asked, “So in your attempt at fairness, what was the response of the Ministry, in your attempts to seek equitable distribution of funds?”
Mr. Cozier replied, “Well, the response was the changes made to our recommendation.”