Decision Reversed on Drug Purchases

The Finance Minister has rescinded a resolution which annulled the awards for four major drug purchases, which were awarded without having been part of a tender process.

Wednesday, February 22, 2012

The pressure exerted by the Social Security Institute (IGSS in Spanish) was instrumental in Finance Minister Pavel Rye’s u-turn, in the case of contracts totaling $256 million.

The IGSS‘s argument was that lack of medicine caused by the cancellation of the contracts was affecting users of the system.

The controversy persists, with reports of companies that have been unduly favored by those contracts, in exchange for support for tax reforms promoted by the new administration.

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More on this topic

Honduras to Change Medicine Purchases

March 2012

The country is to implement a so-called "reverse auctions" and price catalogs, with which they intend to save $12 million a year.

The authorities want to replicate a method practiced in Colombia which has enabled "extraordinary" savings, lowering prices by up to 40%, said the Honduran Minister of Health, Arturo Bendaña.

Cancellation of Contracts and Controversy over Pharmaceuticals

February 2012

The Union of Pharmaceutical Manufacturers in Guatemala is protesting over the cancellation of purchases processed at the end of the previous government, and the start of the current one.

The Union of Pharmaceutical Manufacturers (Grefarma) declared its opposition to the rescindment of open contracts for drug purchases by the Finance Minister Pavel Centeno.

Drug Procurement Contracts Canceled

February 2012

Four tenders for the procurement of medicines have been canceled in Guatemala, on the grounds that they were approved by the outgoing government a few days before the change of command.

The Ministry of Finance reported on the cancellation of 4 tenders for the supply of medicines via open contract.

Guatemala to Buy Medicines Without Tender

January 2012

Urgent measures taken by the new government who declared the health system in a "state of calamity" , have sparked controversy in Guatemala, although conflicting accounts are emerging.

A few days after Otto Perez Molina assumed the executive office, the Ministry of Health of Guatemala said it would buy a lot of medicines worth Q70 million ($ 9 million), without a tender, in order to meet the urgent need for drugs and supplies in the public health system, although the Ministry of Finance has denied that such a mechanism would be adopted.

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