Public interest group raises concerns over surgical gloves monopoly
View(s):A new Sri Lankan public interest group has raised concerns over plans by the Health Ministry to purchase all supplies of surgical gloves from one company instead of calling for competitive bids
“Our information is that the Ministry of Health intends to purchase all its requirements of surgical gloves only from one supplier, virtually unknown, without following a competitive tender procedure,” noted Senaka Gunasekara, Executive Director of Investigation Sri Lanka.
The group, a non-profit organization which says it is acting as a whistle blower in the social and health sectors of the country, says that it has advised the relevant authorities on a number of social and health issues in recent times.
It said that the pattern of transparency in the purchase of goods for the health sector appears to be changing. In the sphere of surgical gloves, the system has been to purchase only from CDDA registered reputed suppliers with Gamma Radiation facilities at their disposal and that too only after competitive bidding.
“This ensured that a quality product was obtained at the most competitive price. Thorough this mechanism the Government benefited financially and the health of the patient was also secured,” it said.
However now a new supplier, seeking monopoly control, with the support of some bigwigs in the Ministry of Health has taken cover saying he is a domestic supplier.
Mr. Gunasekera said this argument cannot be accepted as Sri Lanka does not possess Gamma Radiation facilities necessary for sterilisation. Therefore sterilization would have to be done abroad negating his status as a domestic supplier. This is a very dangerous situation with following adverse repercussions. -
a) There will be just one supplier to the Government dictating prices, controlling supply schedules and possibly compromising on quality. Lack of competition will aggravate this.
b) Consequently the Government’s bill on purchase of surgical gloves will escalate.
c) Due to the market being closed to other suppliers, there will not be any fallback position in case something goes wrong at the plant of the sole supplier as global suppliers will leave the Sri Lankan market.
d) Lives of the patients will be endangered as sterilization program of the sole supplier will not be transparent.
“We wish to make it clear that we are not against domestic manufacturers being granted domestic preferences as per Treasury regulations. What we are against is giving them complete monopoly in supplies to the detriment of quality, price, government finances and more importantly benefits to the patients,” the organization said, adding that granting such monopoly status to a single domestic supplier shutting out foreign competitors is also against WTO (World Trade Organisation) rules to which Sri Lanka is a signatory.
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