Drugs on display
Local pharmaceutical manufacturers and other major industry players have halted credit deals with some regional medical stores and service providers over government’s failure to pay for supplies since December 2019.
The group now operates a cash-and-carry system but also transact business with clients who can provide bank guarantees for purchases, graphic.com.gh reports.
The Executive Secretary of the PMAG, Ms Lucia Addae, said this withdrawal of credit deals move is necessary so members are able to recover outstanding debts for supplies, some of which date back to 2016.
“Our members are suffering because of the huge debts from clients, mainly the NHIA-funded service providers and the medical stores. It appears some have not given a thought to the debt they owe our members at all,” Ms Addae said.
“We think it is fair that we alter our arrangements with the service providers and other clients who have not shown any signs of servicing their indebtedness with our members,” she added.
“The measure has become even more necessary because of the difficulties imposed by COVID-19 around the world.
These days pharmaceutical manufacturers need to buy active pharmaceutical ingredients on cash-and-carry basis from China and elsewhere; there are no credits,” she said.
Ms Addae said the huge indebtedness of service providers and the regional medical stores had taken a toll on the operations of their members, particularly in the midst of the global health crisis.
“We have many challenges already, including financing constraints and difficulties with access to moderately softer loan terms.
“We are also battling challenges brought on by the new clearing regime at the ports where we are incurring high demurrages because of the failure of the system and through no fault of our members.” She indicated.
Meanwhile, the Ministry of Health has asked both the PMAG and the COPG to furnish the ministry with details of institutions that are indebted to members
