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Central Medical Stores In Cashgate…Bisnowaty’s SADM Pharmaceuticals Implicated

Onjezani Kenani writes

Former president Joyce Banda touring SADM Pharmaceuticals Factory in Kanengo

As Malawians die due to lack of medicine, here is what is happening. Let me share this sad case.

1. In 2013, the Central Medical Stores awarded a tender to a company called SADM Pharmaceuticals Limited to supply medicines for $12,577,605 (at today’s exchange rate that’s K9.4 billion).

2. After some time, the Central Medical Stores paid SADM Pharmaceuticals $12,236,790 (i.e. K9.2 billion).

3. For reasons entirely unclear, Central Medical Stores delayed to pay $340,815 (more than K200 million), and took years to do so, but settled the whole amount in February this year.

4. SADM Pharmaceuticals went to court and sued for interest. Do you know how much? $4,366,848 (i.e. K3.3 billion!) This is the interest on the K200 million.K3.3 billion that should have been used to procure medicine for the poor.And the courts granted the interest, first by Justice Kenani Manda of the High Court in a ruling dated 18 June 2020, and upheld by Justice Lovemore Chikopa of the Supreme Court, dated 7 August 2020.Did the lawyers of the Central Medical Stores put up a strong fight?Why did the Central Medical Stores delay to pay the K200 million?So many questions.

The poor are being shortchanged.Central Medical Stores did not even challenge the interest computation.The poor, we are on our own.As if that is not enough, I hear Central Medical Stores has just awarded the same company another contract of $1 million.And stories like these, you will hardly see them anywhere. They are not important enough.

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