Limpopo Health staff have warned of a potential system collapse after the department outsourced the provincial pharmaceutical depot, saying that failures by the newly appointed service provider could trigger widespread medicine shortages.
TimesLIVE reports that the company contracted to take over depot operations failed to deliver medication in November and December, placing more than 440 clinics and 42 hospitals at risk of running out of essential drugs.
This comes after longstanding concerns about the department’s handling of its medicine depot in Polokwane. Last year, the department was slammed for continuing to pay monthly rental of R150 000 to the Limpopo Economic Development Agency (Leda) for a dilapidated building housing the depot, despite its deteriorating condition and absence of a clear long-term plan.
Workers there accused the department of paying rent without a valid lease agreement since April the previous year, raising questions about governance and accountability.
Employees claimed partial outsourcing of depot operations has exposed significant operational and financial flaws, and that the service provider lacks the technical and logistical capacity to manage the province’s pharmaceutical supply chain.
“It has no capacity… its pharmaceutical system is a mess and does not work properly. The department is assisting the company with ordering medication, using its own budget, while paying a company that is failing to deliver,” said one staffer.
According to employees, only critical emergency items are being delivered while routine medication supplies are dwindling rapidly.
“Basic medication like Panado and other essential drugs will soon run out. … there is a lot of stock sitting at the service provider’s storage facility that is not being distributed. Some of the stock risks expiring,” they said.
They claimed the department had been forced to implement direct deliveries from suppliers to hospitals as a stopgap measure, but the system covers only seven hospitals.
They also said the department was effectively paying twice: once to procure medication directly using state funds, and again to compensate a service provider that is not fully operational.
“We are duplicating spending while paying people who are not delivering. Only about 10% of staff are actively working while 90% feel redundant because there is nothing for them to do,” a worker said.
The department has not responded to detailed questions about the outsourcing contract, delivery failures and the financial implications raised by workers.
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