In an effort to improve the payment of suppliers and delivery of medicines to Gauteng Public Health Services, the Medical Supply Depot (MSD) has launched and initiative called Operation Vulindlela. The initiative is aimed at ensuring that suppliers are paid within 30 days; asset management is improved; irregular expenditure is avoided and appropriate technology is in use.
The re-engineering of MSD will improve warehousing as well as delivery of medicines to all public health facilities in the province and ultimately ensure customer satisfaction. To ensure availability of medicine at all times, MSD has since increased stock levels of essential and fast moving items from six weeks to three months.
Through concerted efforts to bring positive changes in the MSD, the Department has seen an improvement in delivery of essential drugs which grew from 40% in April 2012 to 90% in October 2013.
Gauteng MEC for Health Hope Papo has always maintained that corruption will not be tolerated in the Department and following recommendations by the Standing Committee On Public Accounts at the end of 2011/12 financial year, a forensic investigation was conducted at MSD which resulted in the suspension of four officials in June 2013. Further steps are being taken to finalise these matters.
To further strengthen medical supply, the Depot has established a Risk Management Unit within its Finance Division. The Unit, supported by Department’s Risk Management and Internal Control Directorate as well as Gauteng Provincial Treasury, continues to embark on awareness and education drive to empower MSD officials on risk management.
In addition, the MSD has implemented a Deviations Register which is maintained by the Local Acquisitions Committee where all deviations from Treasury Regulations are recorded.
In order to ensure that the Depot does not procure on expired contracts, there are measures to ensure that there are valid national and provincial contracts at all times. The Department has put in place effective stock control systems to ensure that there is no loss of stock in the depot.
In the past financial year, the loss incurred by the MSD amounted to a total of R2 675 911 which comprises of R27 584 breakages and R2 648 327 expired stock. The incurred losses caused by breakages and expired stock was less than 2% below the industry standard of between 3% and 5%.
To minimize the loss due to expired stocks, the Department has made it mandatory for all stock received with an expiry date of less than 18 months to be accompanied by a letter from the supplier indicating that the Depot will be credited if stock is not used within the expiry period.
Whilst the strategies put together by the Department continues to bear the good results, MEC Papo has declared that the department is committed to working with the Office of the Auditor General to implement all the recommendations it made and to ensure that discipline and improved financial performance is attained by the department.
Enquiries:
Simon Zwane
Cell: 082 551 9892
