Datlabs seeks Govt protection

29 May, 2016 - 04:05 0 Views
Datlabs seeks Govt protection

The Sunday News

Dumisani Nsingo Senior Business Reporter
LEADING pharmaceutical manufacturer and distributor, Datlabs is seeking protection and assurance from the Government to facilitate effective trade in its products as it bids to keep its business afloat and grow its concern. Datlabs managing director Mr Todd Moyo said the company was still sceptical about the prospects of refurbishing its intravenous (IV) fluids manufacturing factory in Bulawayo as the Government was yet to give it assurance of purchasing the product.

The company mooted plans to rehabilitate its IV fluids manufacturing plant at a cost of about $2 million three years ago.

The plant has been non-functional for more than a decade.

“There have been no developments at all on the (IV fluids manufacturing plant refurbishment) issue. It will be dependent on us getting paid the funds and assurance of future orders and relevant payments,” said Mr Moyo.

The Government was Datlabs’ major customer of the Large Volume Parenterals but over the years the Ministry of Health and Child Care has resorted to acquiring the product through donations from foreign donors, this, coupled with late payment, culminated in the company shelving care and maintenance of its IV fluids plant.

Mr Moyo also said the Government was still to settle a debt of about $175 000 it accrued 10 years ago for the supply of parenteral to the country’s health institutions. Parenteral is the medicine taken into the body or administered in a manner other than through the digestive tract, as by intravenous or intramuscular injection.

Although the debt dates back to the period when the country was using the Zim dollar, at that time the company used to source foreign currency at open market rates to procure raw materials to ensure there was uninterrupted supply of the vital medicines to hospitals with the hope that the Government would reimburse as per tender conditions.

“Debt remains outstanding and there have been no measures put in place to settle same,” Mr Moyo said.

Datlabs said its Camphacare product was still facing unfair competition from its main South African competitor, Tiger Brands the manufacturer of Ingram’s Camphor Cream, which is imported into the country. The company is accusing the South African firm of under-pricing its product.

Datlabs introduced its Camphacare into the market three years ago after Tiger Brands terminated a 50-year manufacturing arrangement with the local pharmaceutical and personal care products manufacturer in 2013.

“Challenges on creams and lotions are still the same — there have been no developments at all. We have made our representations to various industrial bodies and the relevant Ministry,” said Mr Moyo.

Affirmative Action Group Matabeleland regional president Mr Reginald Shoko said it was the Government’s prerogative to ensure that Datlabs’ operations are fully fledged as it plays a pivotal role in enhancing the country’s economy as well as job creation.

“The Government is an economy enabler and its duty is to keep people at work and as such it should give a life-line to Datlabs by ensuring that it gives certified orders to the company or give a directive to all Government health institutions to get orders there,” Mr Shoko said.

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