CMST seeks K30bn bailout
Central Medical Stores Trust (CMST) has asked government for a K30 billion bailout in recapitalisation to effectively carry out its mandate.
The institution has proposed that the recapitalisation should be staggered over three years to strengthen its drug procurements, capital asset , stock, supplier and operational expenditure management.
Speaking when Minister of Health Jappie Mhango toured the facility’s offices in Mzuzu on Friday, director of pharmaceutical operations Joe Khalani said CMST has a stock level of 76 percent, with supply fill rate of 63 percent.
He said: “CMST has not been financially capitalised to date. Thus, it sells and distributes medicines and medical supplies to the public and other health facilities with an 18 percent mark-up.
This, plus the 15 percent support of the Buy Malawi Strategy, results in expiries, currently at 7.1 percent.”
The CMST product pricing costs, according to Khalani, are also determined by product purchase price—currently affected by late creditors’ settlements, quality testing charges, clearing charges, warehousing and distribution costs.
CMST board chairperson Hilda Singo, who was part of the delegation, said they were hopeful that government would support them.
Speaking when he toured CMST offices in Lilongwe on Thursday, Mhango said government is keen to recapitalise CMST.
He said: “They deserve to be recapitalised. We will do whatever we can within our means so that the trust is recapitalised.”
CMST was created in November 2010 to replace the Central Medical Stores which was an operational arm of the Ministry of Health since 1968. CMST became operational in 2012.
