Pharmaceutical services head suspended

HEALTH Minister Andreas Gavrielides yesterday announced the suspension of the head of the pharmaceutical services pending an investigation into allegations regarding suspicious procedures in the procurement of medicines.

Louis Panayides was suspended following charges made by EDEK deputy Marinos Sizopoulos that, among other things, drugs had been purchased at higher prices while better offers were available.

Reports on state television last night gave examples where the state paid up 1,000 per cent more for certain medicines. In that particular case the cost of the drug to the pharmaceutical company was 50 cents. The state paid £5.50.

In another case a drug costing £843 in August 1004 went up to £924 by August 27, to £1,200 five days later.

In a third instance a batch of drugs £1.95 on July 21 the same year rose to £2.95 the next month.

DIKO Limassol deputy and industry pharmacist, Athena Kyriakidou, said it seemed the drugs were being bought from two particular “ghost companies”, which appeared out of nowhere in 2003 and 2004.

“I am calling for further investigations to find out why there were such disproportionate prices in the purchases,” Kyriakidou said.

“I hope that innocent employees won’t be sent to the gallows over this. We know of cases of employees being scared or bullied into approving these purchases for fear of being transferred or demoted.”

Sizopoulos had also cited cases where companies supplied alternative yet not identical medicines.

Gavrielides announced yesterday that an investigation into the affair had been ordered by the Cabinet.

“An investigator was appointed to look into the reports for possible wrongdoings by the head of the pharmaceutical services, which mainly regarded the violation of rules and procedures for the procurement of medicines,” the minister said.

Sizopoulos said three specific companies benefited the most from these swift arrangements, where the state negotiated deals directly with the suppliers instead of going through the normal tenders procedures.

Some of the drugs acquired in this manner were later secretly recalled from state hospitals or disappeared, ending up as part of humanitarian aid sent to Third World countries, the deputy said.

In one case anabolic steroids had been included in relief aid, it was reported.
Regarding the medicine shortages, Gavrielides said he would be meeting the suppliers to ask them to provide the market with the drugs.

If that does not happen then the state would turn to the Greek market, the minister said.