The audit conducted between August and November last year, among others, found five of the 45 medicine procurement contracts worth RM1.56 million were not bound by formal contracts but merely based on Letters of Acceptance (LOA).
“Apart from that, 31 LOA procurement contracts reviewed at health departments, district health offices, and the state logistics pharmacy branches found that they were signed six to 34 days after the contract had commenced.
“The fine collection for late delivery of medicine under the Approved Price Product List (APPL) procurement contract and the ministry’s contract have yet to be resolved and there were no conditions stipulating fines on late delivery made by direct purchase,” according to the report tabled in Parliament yesterday.
According to the report, verification of medicines at six locations were not conducted 100 per cent and the medicine stocks were not properly arranged at the pharmacy branches.
“Fifteen per cent of 99 payment vouchers valued at RM490,000 in the Johor Baru health office and 67 of the 115 payment vouchers valued at RM1.55 million at Seberang Prai Utara health office were found incomplete as the Delivery Order and the Goods Received Note (eP) were not attached to the payment vouchers,” the report said.
To overcome the weaknesses, the report proposed for the ministry to provide wider exposure to all Responsibility Centres (PTJ) staff of store management process, procedure and regulations.
“Financial regulations or procedures should be adhered to at all times in procurement, contract administration and payment management as well as improving monitoring of supplier performance.
“Apart from that, the terms of fine should be established for direct purchase so as to protect the interest of the government over late procurement of medical supplies.
“To improve store management efficiency and reduce risk of damaged and loss of medicines, the ministry should also review the arrangement of medical stocks as well as the safety of the store, the report said.