Audit uncovers P15 million expired medicines in AFP office

From Malaya Business Insight (May 5): Audit uncovers P15 million expired medicines in AFP office

EXPIRED and contaminated medicines and hospital supplies worth P15.12 million were found by government auditors during an inventory conducted for the 2016 audit of the Armed Forces of the Philippines Commissary and Exchange Services (AFPCES).

The audit report released yesterday said inadequate procurement planning, weak monitoring mechanisms, and poor storage systems and facilities caused wastage of limited government resources which is a violation under Section 2 of the State Audit Code requiring prudence and efficiency in all levels of government operations.

Inspections by the audit team at the AFPCES outlets showed the bulk of the expired medicines were found at the AFP Medical Center Drugstore amounting to P11.8 million.

Others were likewise found at the Bonifacio Naval Station drugstore (P1.244 million), Fort Bonifacio Drugstore (P839,435), Villamor Air Base Drugtore (P710,375), and Main Drugstore (P524,410).

“It was established that this happened as a result of the continuous purchase of the above items despite the fact that these are slow-moving. Most of the quantity of expired medicines and medical supplies are nearly equal to the total quantity purchased from recent years,” auditors said.

Analysis of stock procurement and outflow revealed questionable repeat purchases even when the items are not being used or sold.

The most glaring was the order for 590 boxes of Pneumosolv vials, an injection for bacterial and lower respiratory tract infections, in 2012 and another 410 in 2013 of which only 155 were sold as of December 31, 2016 leaving 845 boxes valued at P3.32 million.

Similar circumstances were noted for the procurement of pain reliever Tramadin and ulcer medication Omepron.

Auditors were told that the AFP Medical Center submits its list of medical requirements to the AFPCES Headquarters and it is the latter that acts as the procuring entity. However, neither the AFP-MC nor the AFPCES was able to identify who prepared the lists citing “high turnover of personnel” in both agencies.

As of December 2012, the AFP-MC has stopped placing its orders through AFPCES.

Auditors also noted poor conditions in the stockrooms of the AFPCES, exposing supplies to rainwater leaks and heat from inadequate ventilation.

http://www.malaya.com.ph/business-news/news/audit-uncovers-p15-million-expired-medicines-afp-office