'Late payments mean higher costs'

PAYMENT to suppliers of medicines must be made on time because the delay could mean higher costs for the government as payment will increase by 10 to 20 per cent to cover operational and interest costs, said a State Legislative Council (LegCo) member.

Pehin Kapitan Lela Diraja Dato Paduka Goh King Chin, during Saturday's afternoon session at the LegCo meeting, suggested the Ministry of Health to consider prompt payment for medical supplies.

"If the ministry is able to pay the suppliers according to the contract period, then they will be able to save around $3.5 million," said Pehin Dato Goh.

Stating that payment should be paid 45 days after receipt of the supplies, Pehin Dato Goh added: "We will be able to get a satisfactory price by being given a 10 per cent discount because suppliers know that they will definitely receive payment after supplying the medicine."

Pehin Dato Goh also questioned whether the allocation of $35 million for medicines for 2010/2011 was sufficient and asked the MoH to raise the budget to $38 million.

Health Minister Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Hj Suyoi Hj Osman replied the allocation for medicines was sufficient.

"The allocation of funds of ($35 million) is enough. However, to correct a mistake made by Pehin Dato Goh, the annual expenditure of medicine is not $34 million, but close to $70 million," he said.

Pehin Dato Goh also asked to raise the amount spent on service maintenance placed at $3.5 million for all districts in 2009/2010 to $5 million for 2010/2011. He also questioned whether the ministry has the equipment to detect new diseases such as H1N1.

The Brunei Times