City bought overpriced antirabies vaccines

ILOILO CITY—The city government purchased overpriced antirabies vaccines amounting to more than P230,000 from an unlicensed supplier, according to a Commission on Audit (COA) report.

In its annual audit of the accounts and operations of the city government, the COA said it disallowed the purchase of the vaccines worth P234,249.11 from Foodwealth Agro-Vet Trading after finding that the supplier did not have a license to operate (LTO) issued by the Food and Drugs Administration (FAD).

“Since the supplier was not able to secure its LTO, there is no assurance on its ability to ensure proper handling and disposal of vaccines and medicines, thus placing at risk the medicines’ safety, efficacy and quality, and may endanger the lives of recipients,” according to the report issued by the COA office in Western Visayas.

Upon inspection, the Department of Health in Western Visayas found that the supplier was not engaged in veterinary trading and was not authorized to distribute drugs and medical devices.

The vaccines were meant for the city health office and procured from a single unlicensed bidder in violation of FAD rules, according to the COA report sent to Iloilo City Mayor Jed Patrick Mabilog on Sept. 15.

The head of the city’s bids and awards committee (BAC) had earlier explained that it relied only on the mayor’s permit as a general merchant issued to the supplier. The city government paid P307,750, including withholding taxes on June 13, 2013.

In its report, the COA said the price of the vaccines was “way beyond the 10-percent allowable price variance” compared to prices from a pharmacy, which was supplied by other distributors.

In the canvass conducted by the state audit agency, a vial of Berirab (human immunoglobilin, pasteurized), which the city government purchased from Foodwealth at P10,625, was priced at P5,750 in a government pharmacy, or a difference of P4,875.

The supplier sold another vaccine, Verorab (activated purified rabies vaccine prepared in vero cell) at P2,850 per vial, but the drug cost only P1,405.95 in the pharmacy, or a difference of P1,444.05.

A disbursement voucher also showed that the supplier sold Verorab at P2,500, which was still higher than the price of the government pharmacy by P1,094.05.

The COA recommended that the BAC conduct an “exhaustive and comprehensive evaluation of bidders” before awarding procurement contracts. The committee should also ensure competitive bidding and reasonable prices to avoid overpricing, it said.