OECS Heads of Government agree to settle outstanding PPS debts

Regional heads of governments have agreed to make arrangements to settle outstanding debts to the Pharmaceutical Procurement Services (PPS) a priority.{{more}}

At the press conference marking the end of the 55th meeting of the Organization of East Caribbean States (OECS) Authority, Prime Minister Dr Ralph Gonsalves, Chairman of the Authority for the upcoming year, disclosed that over EC four million dollars is currently outstanding to the PPS, which supplies pharmaceutical drugs to the OECS member states.

Dr Gonsalves pointed out that since the issue was discussed on June 12, a number of the tardy countries had made payments.

He also pointed out the importance of all member states making their payments to the PPS, saying that lack of payment could have far-reaching effects.

“People have to get their drugs. You may not have the shortage of drugs in the system, but if you owe monies and your orders are held up at the OECS and the pressures are on you locally, and you have to buy yourself and you end up paying, in some cases, fifty per cent more than if you buy it through the PPS.

“The other thing that we have to be mindful about, and it is important that we have an informed discussion on this: if the OECS PPS owe some suppliers and they don’t get their payments, those suppliers may suspend shipping or selling the drugs; and how the system works in this: everybody really has to pay, because if you owe say a million to one supplier and only four hundred thousand is paid, the supplier may say ‘I’m not sending you any further drugs until I get my six hundred thousand’ so Peter pays for Paul.

“So, it is important in this business that everybody have to throw in, in accordance to what they buy, because everybody will suffer. This is why this one is so important, but you have to get the drugs to the hospital, but then you have to go and buy them yourself alone through another agency, where you are not going to the volume discounts if you were to trade through the PPS, and end up paying much more for it.”

On an annual basis, the OECS member states reportedly save four million dollars by purchasing through the PPS.

Another concern highlighted by the Chairman, is what he described as wastage of drugs.

“In some cases, you have pilfering in some cases, you don’t have the proper management of the drugs and pharmaceuticals, so that in addition to the issue that you raise, the more fundamental issue is are we getting value for the money.”

When asked, the Prime Minister did not indicate which member state was the most tardy, saying that the tardiness varies.

“I would say that by and large, over a period of time, all countries have been tardy, so that if you choose a particular month when you get the accounts, country A may be in a worse shape than country B, but three months down the road, country B might be in a worse shape than country A and if you go back the same thing will happen.”(JJ)