Algeria: Loss of 500 billion centimes (DA) in shady transactions in hospitals

An exhaustive fact – finding report worked out by the General Financial Inspectorate has revealed that the Public Treasury has sustained a loss amounting to about 500 billion centimes (DA) because of the illegal and shady practices of a covert ring dealing in the business of pharmaceuticals and health care equipment destined to Algerian hospitals.

The report blamed a host of managers and executives in several hospitals and public health centers in various parts of the country for this gross mismanagement and collusion with shadowy quarters bent on malpractice and misappropriation of public funds.

Such a blasting report was conveyed to the health Minister, Abdelmalek Boudiaf, who is expected to launch an in – depth inquiry into these reported malpractise and blameworthy dealings by certain hospital senior staffs who are said to be involved in a wide network of fake and suspicious transactions for the purchase of medicines, health-care devices, vaccines and serums, reliable sources told Echorouk.

According to the report’s findings, the “barons” controlling a sizable part of the national pharmaceutical market have caused financial losses to the Central Pharmacy estimated at over 500 billion centimes in Dinars over the past three years, in addition to other enormous losses caused to the Pasteur Institute of Algiers in the purchase, through over – inflated invoices, of serums and vaccines in blatant violation of all the laws and regulations.

Algeria: Expenditure Projections 

* Pharmaceuticals:  DZD272.95bn (USD3.44bn) in 2013 to DZD302.11bn (USD3.78bn) in 2014; +10.7% in local currency and +10.0% in US dollar terms. Forecasts broadly unchanged from the previous quarter. 

* Healthcare: DZD693.06bn (USD8.72bn) in 2013 to DZD749.72bn (USD9.37bn) in 2014; +8.2% in local currency and +7.5% in US dollar terms. Forecasts revised downwards due to modifications to macro-economic forecast.