Ministry's clarification after medicine procurement was halted
Nepal Health News, Kathmandu:The Ministry of Health and Population has stated that the procurement of medicines has been halted because Nepal Aushadhi Limited (Nepal Medicine Limited) did not participate in the procurement process.
Ministry spokesperson Dr. Prakash Budhathoki clarified that the suspension of medicine production by Nepal Aushadhi Limited was not due to the ministry failing to move forward with the procurement process. He explained that in the tender processes conducted according to the Public Procurement Act and Regulations, Nepal Aushadhi Limited would be awarded the tender if it participated and submitted all the required documents. He emphasized that this is not like buying goods from a grocery store. He also mentioned that the ministry encourages domestic and local industries.
Dr. Budhathoki said, “We encourage our domestic and local industries. We believe that the prices they offer are even lower than those from foreign suppliers. If they participate in the tender process according to the Public Procurement Act and Regulations, and submit complete documents and provide assurance, they will be awarded the contract—there’s no doubt about it. But saying that this is like buying from a grocery store when they haven’t participated—this is incorrect. The ministry functions within the framework of laws and regulations.”
He further explained that for Nepal Aushadhi Limited to engage in government-to-government (G2G) operations, both the Ministry of Finance and the Ministry of Industry must express commitment. They must also guarantee that medicine production will not stop throughout the year. He pointed out that failure to enter the tender process and to submit a business plan has made it difficult for the ministry to place its trust.
Dr. Budhathoki mentioned that Nepal Aushadhi Limited is preparing a business plan to submit to the Ministry of Industry, which would then be forwarded to the Ministry of Finance. If the Ministry of Finance approves it, the budget will also be guaranteed. This was discussed in meetings involving the Chief Minister and other concerned authorities. Speaking to News Agency Nepal, he also stated that the MoU submitted by Nepal Aushadhi Limited to the Ministry of Finance has not yet been approved.
“In recent discussions involving the Chief Minister, secretaries, and other stakeholders, it was agreed that Nepal Aushadhi Limited would prepare a business plan and submit it to the Ministry of Industry, which would then forward it to the Ministry of Finance. If approved by the Ministry of Finance, the budget would also be guaranteed. Based on that assurance, the Ministry of Health planned to sign an MoU to procure medicines from them,” he said. “However, the MoU submitted to the Ministry of Finance has not been approved. Without any assurances from the Ministry of Finance, when we asked to review their business plan and they failed to provide it, on what basis could we trust that they would continuously produce medicine 24/7, year-round, and supply it to the Nepali public either for free or through other means? Due to this lack of trust, the MoU signing has been delayed.”
Nepal Aushadhi Limited has halted the production of paracetamol and ORS (Jeevan Jal) for the past one and a half months. Despite purchasing a large quantity of raw materials and increasing production, the company has claimed that, since various government bodies did not purchase the medicines, they were forced to stop production due to lack of market demand.
Source: News Agency Nepal
