Pharmaceutical importers are up in arms at what they describe as “absurd and arrogant behaviour” meted out to them by the director of the Government Health Procurement Services, our sister business newspaper reported this week.

Moreover, the government owes the local pharmaceutical sector between e30 and e40 million, The Malta Business Weekly reported in last Thursday’s issue.

Speaking to the newspaper, Reginald Fava – chairman of the Chamber of Commerce, Enterprise and Industry’s Healthcare Business Section – claimed the director of Government Health Procurement Services was abusing the power the post holds.

“On a whim,” Mr Fava said this week, “the director comes up with new rules and regulations to further complicate the operations of companies tendering for supplies to the Government Health Procurement Services.”

Elaborating on such “absurd and arrogant behaviour”, Mr Fava claimed that suppliers are being asked to withhold delivery of a consignment even though the due date would be near. “Subsequently, the supplier is slapped with a penalty for late delivery of the products since the consignment would then be delivered after the consignment date, even though they were requested to do so by the authorities themselves. This is just one case of the absurd situation that the sector I represent has to tolerate and operate in.

“We should be meeting with the director on a regular basis to supposedly iron out any issues, and yet we remain astounded when new practices are introduced without being discussed prior to implementation.”

Over and above that, he points out, importers are still waiting for the implementation of an agreement struck with the government back in 2005, which was to have seen suppliers’ penalties for late deliveries being refunded – dating back to 1 January 2004 and under certain conditions such as the waiving of interest for late payments by the importers.

“We held our side of this agreement. We are still waiting for the government to honour its commitment,” Mr Fava added.

“As pharmaceutical representatives of foreign companies we are bound to submit tenders to the Government Health Procurement Services as otherwise our suppliers would seek other representatives for the islands. Besides, we are also morally bound to supply the medicine required for the benefit of patients. In between these considerations and the woes faced by the industry, our situation can at best be described as between hell and hell.”

Two weeks ago, the newspaper revealed that the government was denying factoring to pharmaceutical companies to stem the rise of the national deficit since government debt held by the banks has to be added to the national accounts.

“Following the denial of factoring for pharmaceutical importers, which just adds to the list of woes faced by the pharmaceutical sector, we are now faced with the abuse of a dominant authority.”

The late payment by government for products procured exceeds in many instances 200 days despite an agreement of four years ago, which stipulated a maximum 150 days credit term. “I am insisting on the implementation of the 120 day credit limit to make business sense when supplying the Health authorities and to alleviate the tight cash flow situation that has ensued as a result of the global recession. Pharmaceutical suppliers are insisting that we respect our credit terms, and in some cases are also demanding payment in advance for orders submitted.”