NatPharm requires $65m recapitalisation

22 May, 2016 - 00:05 0 Views

The Sunday News

Tinomuda Chakanyuka Sunday News Reporter
THE National Pharmaceutical Company of Zimbabwe (NatPharm) requires capital injection of about $65 million to adequately stock and supply health institutions with drugs, an official has said. Natpharm is mandated with the procurement, storage and distribution of medicines and medical supplies to public sector health institutions. Ministry of Health and Child Care director of Pharmacy Services Mr Misheck Ndlovu said the organisation was failing to deliver on its mandate owing to a myriad of challenges.

He cited lack of capital, swelling debts and failure by Government to pay for services rendered as some of the major challenges facing the company.

Mr Ndlovu revealed that Natpharm was owed millions of dollars for unpaid drug supplies, a situation that has seen the company continue relying more on donated drugs.

“There is need for mobilisation of resources to recapitalise Natpharm and ensure that it has enough stocks of medicines which will not run out at critical moments. NatPharm needs about $65 million dollars to adequately stock and supply health institutions with drugs. The organisation is also owed a lot of money running into millions in unpaid supplies of drugs and that is adversely affecting operations. Natpharm also owes service providers substantial amounts of money,” he said.

Natpharm has recorded losses for a number of years, a development that has prompted auditors to question its viability as a company. The company has since re-positioned itself as a storage and distribution facility for some donors who pay handling fees, as it seeks to generate revenue.

Mr Ndlovu also pointed out that delays by treasury to disburse funds was affecting procurement of drugs.

He also bemoaned the shortage of critical staff such as pharmacists which he said was also affecting the operations of the pharmacies.

He urged Government to unfreeze posts for health workers to allow the Government pharmacy organisation to recruit qualified and adequate staff. Natpharm is experiencing more than 34 percent vacancy rate but cannot recruit as Government has put a freeze on recruitment.

Government unfroze over 600 posts of health workers in 2014 but the Health Services Board has not been able to fill the posts as treasury is yet to give the greenlight owing to financial constraints.

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