Around P2.2 billion worth of drugs and medicines, medical and dental supplies purchased by the Department of Health (DOH) have expired, overstocked, or nearly expired, the Commission on Audit (COA) has bared.
The 2019 DOH annual audit report released Monday by COA also showed that over P25 million worth of procured drugs and medicines, equipment and medical supplies are in danger of possible wastage, loss, obsolescence and expiry due to deficiencies in internal control being observed in warehouses and storage facilities of the DOH and various hospitals and offices under it.
In the report submitted to Health Secretary Francisco Duque III, COA attributed the expiration, overstocking and near expiration of medicines and various medical and dental supplies to the following:
1. Poor procurement planning
2. Inefficient and uncoordinated transfer or distribution and
3. Lack of monitoring and proper storage.
Of the P2.2 billion medical and dental supplies and drugs, at last P1.024 are nearing expiry and should be distributed immediately.
State auditors said the factors “hindered the maximum delivery of the highest quality of medical/health care services to the general public and entailed wastage of government funds.”
Audit examiners stated that the expiration and near expiration of important medicines and medical supplies clearly manifests that the DOH committed excessive expenditure, adding that the agency had procured “more than what is needed”
Overstocking of medicines that caused wastage had been noted by COA in previous year’s audit reports.
Again, COA called the attention of health officials to exercise prudence in the use of government resources simply by making sure that purchase of supplies is limited to what are urgently needed.
The state audit agency also advised the DOH to expedite the distribution of the nearly expired medicines and the additional slow-moving inventories amounting to P1.138 billion.
Responding to the adverse audit findings, the DOH explained that some of the medicines have been purchased way back in 2017 while some have already been completely disposed of through distribution to those needing them.
The same audit reports chided DOH for deficiencies in the internal control system.
For one, deficiencies were noted in the utilization of warehouses and storage facilities. COA said DOH failed to adopt an orderly storage system and adequate controls to safeguard medicines, supplies and equipment amounting to P25,492,832.791.41 “against possible wastage, loss, obsolescence or expiry.”
As a result the procured items were exposed to the elements, theft and rapid deterioration while drugs and medicines are in danger of expiration.
Reacting to the COA recommendations, the DOH said it has hired additional personnel to augment the existing personnel requirement in the distribution section.
Compliance to good warehousing practices have also been included in the terms of reference for the 2021 Warehousing, Service and Procurement.