A report issued by the National Audit Office (NAO) has exposed serious financial misconduct by the State Pharmaceuticals Corporation (SPC), involving the misuse of donations meant for the procurement of essential cancer drugs during 2022–2023.
According to the NAO, the SPC obtained funds by submitting false bills and invoices to the Medical Supplies Division (MSD) for medications that had already been financed through external donations.
These included substantial contributions from Sri Lanka Cricket (SLC)—amounting to USD 2.5 million—and Rs 100 million from the Sri Lanka Foreign Employment Bureau (SLFEB), channeled through the National Health Development Fund (NHDF).
The report highlights that SLC’s donation was intended for the purchase of IV Meropenem (1g and 500 mg).
However, duplicate payments were reportedly made by the MSD for the same drugs, which were supplied to both Lady Ridgeway Hospital for Children (LRH) and Castle Street Hospital for Women.
A similar scheme was followed for 19 other cancer medicines, with the MSD making additional payments for at least 10 drugs already procured via donations.
In the case of the SLFEB’s Rs 100 million grant, intended for 42 vital oncology drugs, the audit revealed that price quotations were only obtained for five, suggesting significant lapses in procurement transparency.
The NAO further reported that due to either deliberate misconduct or gross negligence, SPC officials facilitated the misuse of Rs 943.83 million in public and donated funds.
A large stock of medicines had been held in storage unnecessarily for over two years, indicating serious supply chain mismanagement.
The Medical and Civil Rights Professional Association of Doctors (MCPA) has condemned the prolonged inaction, stating that the adverse impact on patient care is incalculable.
MCPA President, Dr. Chamal Sanjeewa, has called on the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) to launch a full-scale inquiry.
He stressed the need for legal action against those in the SPC, MSD, and Ministry of Health and Mass Media who were involved in the fraudulent transactions.
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