Materia Medica Malaysiana

Health Ministry denies it failed to meet contracts

KUALA LUMPUR: The Health Ministry has denied allegations that it failed to meet medical products supply contracts worth some RM190mil with Pharmaniaga Bhd, causing many bumiputra medical supply companies to lose millions of ringgit and risk bankruptcy.

Its Minister, Datuk Dr Chua Soi Lek, who said that a report on the issue in Utusan Malaysia was untrue, pointed out that under a 15-year contract concerning the supply of medicines and medical products signed in 1994, both the ministry and Pharmaniaga were required to review the prices of all products supplied by the company every three years.

“The current review period, which started in August last year, is ongoing and we have until September this year to conclude this evaluation together with Pharmaniaga,” said Dr Chua at his ministry yesterday.

Pharmaniaga Bhd, a government-linked company and a subsidiary of United Engineers (M) Bhd, was reportedly given a RM336mil concession for distribution purposes to bumiputra and non-bumiputra supply companies from 2004 to 2006.

Dr Chua said: “At the last count, there are 45.6% qualified bumiputra companies participating.

“The value of this participation is approximately RM181mil. This percentage is expected to rise by September. The claim that only 18% of the contract is channelled to bumiputra suppliers is baseless.”

Dr Chua also said the concession value of RM336mil as reported was inaccurate, noting that the actual value has not been finalised.