Central Medical Stores Trust in K7.5 billion deficit

He, however, said the CMST is on the right track in mitigating some of the challenges by finding ways for financial sustainability and income generation. “Change in government policy relating to drug budget management, changes in facility demand patterns ensued upon tight budget management and duplication of supply for some commodities slows down CMST sales,”…

The Central Medical Stores Trust (CMST) is still in need of K7.5 billion to ensure an uninterrupted supply of medicines and medical supplies in the country’s health facilities.

Chief Executive Officer for the trust, Chikaiko Chadzunda, said this in an interview after a media training on reporting on supply chain of medicines.

He said since 2019, the institution has been allocated up to K22.5 billion out of the K30 billion, which is needed in its recapitalisation.

“Actually, the total budget for recapitalisation was K30 billion initially. So, around 2018-2019, the government provided K5 billion , in December 2021 we were given K12.5 billion and now we also have been given K5 billion for the 2022/2023 financial year,” he said.

Chadzunda reiterated that the financial challenges and the impact of the Covid pandemic on global supply chains have in recent years interrupted the local supply chains for medicines and medical supplies.

He, however, said the CMST is on the right track in mitigating some of the challenges by finding ways for financial sustainability and income generation.

In his presentation, CMST Warehouse Manager, Stewart Lichapa highlighted current challenges which the Trust is facing, including inadequate capital, adding the available capital got eroded.

“Change in government policy relating to drug budget management, changes in facility demand patterns ensued upon tight budget management and duplication of supply for some commodities slows down CMST sales,” his presentation reads in part.

Ministry of Health spokesperson Adrian Chikumbe could not comment on the matter since they are on the receiving end, thus referring us to the Treasury.

Treasury spokesperson Taurai Banda said there is a plan to fund the CMST fully.

Meanwhile, Health Rights activist George Jobe has called on the Treasury to give the CMST the remaining amount of money, saying the shortfall still poses a challenge to public hospitals.

The CMST was created in November 2010 and became operational in 2012 to, among other things, address some of the governance and operational challenges that rocked the defunct Central Medical Stores.