MANILA — Medicines, drugs and other types of inventories of the Department of Health (DOH) amounting P7.43 billion were found to be expired, nearly expired, or damaged, the latest Commission on Audit (COA) report showed.

State auditors said in the 2022 annual audit report on the DOH that deficient procurement planning, poor distribution and monitoring systems, and other weaknesses in internal controls resulted in wastage of government funds and resources.

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The audit report noted that Presidential Decree No. 1445 or the Government Auditing Code of the Philippines states that the all resources of the government should be managed in accordance with the law to prevent loss or wastage.

“The responsibility to take care that such policy is faithfully adhered rests directly with the chief or head of the government agency concerned,” the audit team noted.

The audit team also cited the 2022 General Appropriations Act which requires that the inventory of supplies to b procured shall not exceed the agency’s two-month requirement.

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The audit team also noted other government rules and regulations on procurement of drugs and medicines as well as the World Health Organization’s Guidelines for Drug Donations which state that all donated drugs should have a remaining shelf-life of at least one year.

Expired drugs and other inventories amount to P2.391 million, slow-moving stocks amount to P5.6 billion and delay or undistributed inventories totaled P1.5 billion.

“Drugs do not become toxic or ineffective on their date of expiry but may slowly deteriorate depending on the product, formulation, and storage conditions. Some become toxic but most simply lose their efficacy,” the audit team said.

The report also noted 2.2 million vials and 1.6 million doses of wasted and expired COVID-19 vaccines as well as near-expiry vaccines 11,976 near-expiry vaccines.

“Overall, the problem exposed management’s inability to safeguard, manage and utilize health funds and resources economically and effectively,” the auditors said.

The DOH management told the auditors that the proper disposal of the expired drugs and medicines have already been ordered.

The DOH has also instructed supply officers to regularly monitor remaining stocks before accepting deliveries, among other measures to prevent overstocking.

“The management is reminded to ensure that the noted root causes should be properly and sufficiently addressed,” the audit team said.

A copy of the report was received by the office of Health Secretary Teodoro Herbosa on August 30, 2023.

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