A short press statement by the HealthCare Trade Section of the Chamber of Commerce and Enterprise, issued on 4 December, did not receive too much media attention. It said that some members would not have been able to pay their VAT returns on 15 December simply because they had not been paid their dues for medicinals bought by the government.

The government did not react to this statement and this pushed the chamber to hold a press conference, on 12 December, in which it was said that the government owed medical suppliers between e25 and e30 million. Some of the payments go back to April.

They also warned that they would not be able to pay their dues to the government in VAT returns unless they receive what they were owed, and added that if such a situation persisted this could lead to bankruptcy or lay-offs, and also a shortage of medicinals considering that they were being asked to pay for their orders from abroad in advance.

The government, always quick to come back with counter-replies, this time round stayed mum, adding credibility to the claims that were made by the chamber. It is clear that the government has run out of the required cash to pay its dues, and there is yet no timeline as to when the medical suppliers will be getting what they are owed.

The suppliers have, on their part, not been able to settle their own VAT payments, with some of them sending in their returns with an explanatory note that they are unable to pay VAT because the government has not played its part.

The government’s silence on this whole matter is quite worrying. The chamber has not received any official feedback from the government on its complaints, and is still in the dark as to when the issue will be seen to. The chamber has said that the importers have a moral obligation towards the patients, but at the end of the day there is only so much that they can do.

This is leading to concerns that there could be a shortage of medicinals that the government uses in its hospitals – unless the government pays up, the importers will not have the money with which to make new orders, and they will therefore be unable to obtain medicinals from their foreign suppliers.

It is a vicious circle that could see the patients ultimately being the ones who will suffer the most, as is usually the case when there is some dispute involving the government and some union or organisation that is directly connected with the services offered in our hospitals. What will happen when the current supplies dry out? Will patients be asked to purchase the medicines they need from private pharmacies while they are being treated in hospital?

It is not the first time that the importers have clashed with the government over overdue payments. Although, some years back, it was agreed that the government bound itself to pay up within 150 days, to be gradually reduced to 90 days, pharmaceutical importers are still waiting longer than that to receive their dues.

It is unfortunate that this is happening again today.

First of all, the government should publicly explain why it has not fulfilled its part of the bargain; secondly, it should say when it will be doing so. Importers should know when they will be receiving the cash to make their own arrangements with their foreign suppliers, otherwise there is a great risk that public hospitals will end up without medicines in the next few months.

The risk that companies could close down or that workers are dismissed is also something that should be of concern to the government.