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The State Pharmaceuticals Corporation (SPC) had incurred heavy losses in its operations, according to the Auditor General’s report on the SPC’s Annual Report for 2006 presented to Parliament recently.
Injectable Contraceptives for the Family Health Bureau’s family planning programme had been purchased with the assistance of UNFPA funds.
Even though a cabinet memorandum had been prepared for approval of the cabinet in 2003, a stock of 350,000 vials of the injection had been purchased for US$ 679,157 (Rs.71.92 million) in 2004 from an Indian company without cabinet approval, the report said.
Eight months after the purchase, it had been found that the drug was not compatible with the standards. A debit note for US$ 383,829 (Rs.41.84 million), being the value of the balance stock of 197,000 vials, had been issued on the supplier company on January 30, 2006, but the SPC had failed to recover that amount even up to end of May 2007, the Auditor General’s report said.
However, among the money due to SPC were Rs. 2,316,134.985 from the Director General of Health Services and a Trade Debtors balance of Rs.241,279,815. There were also several other dues amounting to over 900 million rupees, the Report pointed out.
