Malawi releases K1.1bn to bail out hospitals

Malawi Government has released K1.1 billion (about $3.06 million) to allow central and district hospitals to pay debts they had with drug suppliers and other related bills.

This follows a meeting President Joyce Banda held on Monday with district heath officers at Kamuzu Palace in Lilongwe. Last week, drug suppliers blacklisted some public hospitals for not settling down their debts, such institutions owed the suppliers.

During the meeting, DHOs revealed to have owed drug suppliers’ huge sums of money, something that prevented hospitals from getting drugs on credit.

Secretary to the Treasury, Radson Mwadiwa confirmed on Monday having paid the hospitals the money required to settle drug debts and pay other bills.

Mwadiwa said many hospitals wrote the Treasury that they were having debts with drug suppliers and that most of them had already used the allocation in the 2012/2013 financial year.

“I wish to report that government has released K1.1billion where half would be used for emergency procurement of drugs and the other half clear the debts that hospitals had,” Mwadiwa explained.—Mana