The Department of Health (DOH) has P7.43 billion worth of drugs and medicines that are already expired, nearly expired, damaged, overstocked or undistributed, the Commission on Audit (COA) said.

In its 2022 audit report, COA said its auditors discovered drugs, medicines, and other types of inventories with a total value of P7,430,901,637.34 that were already "expired and/or near expiry, damaged, overstocked, excessive, understocked, slow-moving, undistributed, distributed late and/or accepted below 18 months."

It said there were expired medicines in the Cordillera Administrative Region (CAR), Region IX, and Region XII collectively worth P2,391,486.22; medicines nearing expiry date in the National Capital Region (NCR), Region I, Region III, and Region VI collectively worth P86,004,821.81; damaged medicine due to termite infestation in Region III worth P53,376; overstocked or excessive medicines in CAR, Region I, Region III, and Region XIII collectively amounting to P203,646,750.93; understocked medicine in Region XIII worth P879,233.31; slow-moving medicines in NCR, Region I, and Region XIII worth P5,605,070,883.46; delayed medicine distributions or undistributed medicines in NCR and Region I worth P1,514,550,038.08; and medicine with acceptance of below 18 months in Regions IV-B and XI worth P18,305,057.53.

The overstocked and slow-moving inventory items are a result of excessive spending and inadequate procurement planning, COA said.

It also blamed the DOH's "laxity/inadequate monitoring and reporting system" for the overstocked and understocked drugs as well as its poor distribution system.

"Overall, the problem exposed management's inability to safeguard, manage, and utilize health funds and resources economically and effectively. Overstocked or slow-moving drugs and medicines are exposed to the risk of possible wastage due to poor condition of the warehouses and the maintenance of excessive supplies entails additional costs in terms of manpower and warehouse space which could have benefitted the government's health programs for the poor," COA said.

It recommended that DOH should impose sanctions on suppliers that repeatedly violate their guidelines.

It also asked DOH to required suppliers to submit guarantee letters for deliveries that are below the standard shelf life. As for hospital pharmacies and end-users, COA asked them to avoid approving guarantee letters with commitment of replacement for less than six months from the date of expiration.

At the same time, COA recommended the immediate and proper disposal of drugs and medicines that have already expired. For those that are nearing their expiry date, the COA asked the DOH to fast-track its distribution in order to avoid more wastage of government funds.

Even if some of the drugs and medicines are donated, the COA asked the DOH's Supply Officer to decline acceptance of anything that could not be consumed in a timely manner.